MTN, Glo, Airtel, and 9Mobile have proposed a 100% tariff hike.
Newsone Nigeria reports that the Nigerian telecommunications companies proposed a 100 percent increase in their tariffs, pending approval from the Federal Government of Nigeria led by President Bola Tinubu.
This online news platform understands that the 100% tariff hike proposal, submitted to the Nigerian Communications Commission (NCC), aims to address rising operational costs, including inflation and increased service delivery expenses.
MTN Nigeria Chief Executive Officer, Karl Toriola, disclosed during an interview on Arise TV on Thursday, January 2, 2025.
However, the CEO expressed that whether the Nigerian Communications Commission—the telecom regulator- will approve the proposal remains uncertain.
According to Toriola, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational 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 said.
Despite the challenges, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector.
The CEO emphasised that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.
“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.”
Newsone reports that the proposal comes amid rising costs for telecom companies, driven by factors such as inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.
MTN Nigeria’s Chief Executive Officer highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations.
