MTN Nigeria has formally requested the Nigerian Communications Commission (NCC) to approve a 100% increase in service tariffs, citing operational challenges threatening the telecom industry’s sustainability.
Karl Toriola, the Chief Executive Officer of MTN Nigeria, disclosed this during an interview with Arise TV, stressing the necessity of the proposed tariff adjustment due to soaring costs.
“We’ve put forward requests of approximately 100 percent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola remarked.
He emphasized that the adjustment is essential for the telecom sector’s long-term viability, rather than short-term profits.
“I believe we’re all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues.
“First, human rights are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted,” he added.
Challenges Threatening the Telecom SectorThe telecom industry is grappling with inflation, fluctuating exchange rates, and surging energy costs, especially for diesel and power generation.
Toriola warned that these issues are diminishing profitability and risking operational continuity for service providers.
Earlier in the week, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) raised alarms about the dire state of the industry.
ALTON Chairman, Engr. Gbenga Adebayo, described the telecom sector as being “under siege,” advocating for urgent tariff adjustments to maintain service quality and infrastructure development.
“Failure to approve tariff increases could lead to service disruptions and reduced telecom access in underserved areas,” Adebayo cautioned.