Telcos Support 100% Tariff Hike, Says MTN CEO

The MTN CEO reveals that telecom operators are in agreement over a proposed 100% increase in tariffs, citing industry sustainability concerns.

Karl Toriola, the Chief Executive Officer of MTN Nigeria, stated that telecommunications companies are collectively proposing a 100 percent tariff increase to the Nigerian government.

He observed that the growing operational costs, inflation, and devaluation of the naira have made tariff increases essential for the industry’s survival.

During the business segment of Channels Television’s Sunrise Daily on Friday, Toriola conveyed skepticism about the government approving a 100 percent increase request. However, she remains hopeful for a significant rise nonetheless.

At MTN, we believe a 100 percent adjustment is necessary. The industry largely shares this view because we’re all facing similar challenges. However, the government understands the strain on consumers’ finances due to inflation and currency devaluation pressures and is cautious about imposing additional burdens.

“I’m uncertain if they’ll provide us with the full amount, but I’m hopeful they will offer something substantial. Over time and possibly throughout the year, we might see smaller adjustments that will gradually help us return to our desired position,” Toriola stated.

The CEO of MTN stated that nearly every sector in the country, such as aviation and power, has raised tariffs, with the exception of the telecommunications industry.

He stated that all organizations analyzing global telecom industry statistics have revealed that Nigeria likely has the second or third lowest tariffs worldwide for both data and voice services.

He assured that raising tariffs would address the sustainability issue in the telecom industry.

The tariff enables us to keep investing, expand capacity, enhance resilience by installing additional generators and an authentic power supply system. This ensures we provide you with stable and high-quality networks.

He stated, “It tackles sustainability and empowers regulators to enforce quality of service standards, which consequently allows us to invest in providing the level of service that Nigerians deserve.”

Toriola characterized 2024 as a challenging year for Nigeria’s telecommunications industry due to increasing inflation and the government’s devaluation of the naira currency.

He expressed appreciation for the policymakers’ efforts to implement measures that will eventually make the industry sustainable.