The Chief Executive Officer of MTN Nigeria, Karl Toriola, revealed that telecommunication companies are collectively advocating for a 100% tariff increase to address escalating operational costs driven by inflation and the naira’s devaluation.
Speaking during the business segment of Channels Television’s “Sunrise Daily” on Friday, Toriola expressed optimism for a substantial tariff adjustment, even if the full 100% increase is not approved by the Nigerian government.
“We at MTN believe a 100% adjustment is necessary, and I think the industry is aligned because we are all facing the same challenges.
However, the government is sensitive to the financial pressures on consumers due to inflation and currency devaluation,” he said.
Toriola added, “I’m not sure they will approve the full 100%, but I am optimistic about a significant adjustment.
Perhaps smaller, progressive increases throughout the year will help us achieve sustainability.”
He emphasized that the telecom sector has not adjusted its rates in line with other industries like aviation and power, despite enduring similar economic pressures.
Citing global statistics, Toriola noted that Nigeria has among the lowest telecom tariffs worldwide for both data and voice services.
An increase in tariffs, he said, would ensure the sector’s sustainability by enabling continued investments in infrastructure, capacity building, and service quality.
“What the tariff adjustment allows us to do is invest in building resilience, adding generators, and implementing robust power supply systems to ensure stable and high-quality networks,” Toriola explained.
“This will also allow regulators to enforce quality-of-service standards effectively,” he stated.
Reflecting on the past year, Toriola described 2024 as challenging for Nigeria’s telecom industry, citing inflation and naira devaluation as major hurdles.
However, he acknowledged some steps taken by policymakers to support the sector’s future sustainability.
