MTN Nigeria has revealed that it has requested a 100 percent tariff increase from the Nigerian Communications Commission (NCC), although approval of the proposal remains uncertain.
The request was revealed by MTN Nigeria CEO Karl Toriola during an interview on Arise TV on Thursday. He explained that the proposed tariff increase is essential for the sustainability of the telecommunications sector, which is under significant financial pressure due to increasing operating costs.
“We have submitted requests for rate increases of approximately 100 percent to regulators. “I doubt they are going to approve that amount of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.
Despite these challenges, Toriola expressed confidence that regulators would make the right decision, considering the realities facing the sector. He stressed that the main goal is the long-term sustainability of the industry, not short-term profitability.
“I think we are all on the same side: the policymakers, the regulators, our ALTON president, Gbenga Adebayo, and the industry. We are united because we share concerns on some fundamental issues. Firstly, human rights are fundamental to driving any economy. Without a sustainable industry, the overall economy and people's well-being will be negatively affected,” he added.
The rate increase request comes amid growing challenges for telecom operators, including rising inflation, fluctuating exchange rates and higher prices for critical operational inputs such as diesel and power generation.
Toriola highlighted the pressure these rising costs have put on telecommunications companies, making it difficult for many to operate profitably.
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Earlier this week, operators warned that without a rate adjustment, service disruptions are imminent. Eng. Gbenga Adebayo, president of the Association of Authorized Telecommunications Operators of Nigeria (ALTON), described the sector as “besieged”, pointing to rising operating costs. Despite these challenges, rates have remained unchanged, creating difficulties in maintaining service quality and expanding infrastructure.
Without an immediate rate increase, Adebayo warned that operators may have to reduce services, resulting in limited access to telecommunications in certain areas.
The rate adjustment request was initially raised in April 2024, but no substantial progress has been made. In response, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) called on the Federal Government to facilitate a dialogue with industry stakeholders to find a solution that balances affordability for consumers and financial stability for operators. telecommunications.
Both associations stressed that action is needed now to secure the future of Nigeria's telecommunications industry, which plays a critical role in the country's economy.
NIGERIAN TRIBUNE