Business

“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.”

Nigerian telecommunications companies have proposed a 100 per cent increase in their tariffs, pending approval from the government.

The proposal, which has been submitted to the Nigerian Communications Commission, aims to address rising operational costs, including inflation and increased service delivery expenses.

The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, during an interview on Arise TV on Thursday.

However, the CEO expressed that it remains uncertain whether the Nigerian Communications Commission—the telecom regulator, will approve the proposal.

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 per cent 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.”

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.

Toriola highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations.

Earlier this week, operators issued a statement warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.

He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.

There is anxiety over a possible 40 percent telecommunications service tariff hike in Nigeria this New Year.

This comes as telecommunications subscribers in Nigeria, under the aegis of the National Association of Telecoms Subscribers (NATCOMS), rejected the proposed telecoms tariff hike.

The subscribers said it would be insensitive for the Nigerian government to approve a telecoms tariff hike amid the existing economic hardship.

LEADING REPORTERS gathered that in recent days, there has been widespread speculation of a 40 percent telecoms hike.

Accordingly, this means that all telecom services offered by operators such as MTN, Glo, Airtel, and others would increase by 40 percent. For instance, a data bundle priced at N1000 would rise to N1,400 in the new tariff regime expected to kick off in 2025.

Meanwhile, official sources in the Nigerian Communications Commission (NCC) refuted the tariff hike claims.

This comes at a time when telecom operators, in a recent statement, threatened a shutdown if tariffs are not increased.