Unanimous Call for Tariff Increase Among Telecom Giants
The CEO of MTN Nigeria, Karl Toriola, has revealed that telecom companies in Nigeria are collectively advocating for a dramatic 100% increase in tariffs. This proposal comes as a response to the escalating operational costs driven by inflation and the devaluation of the naira.
Skeptical Yet Optimistic on Approval
During an appearance on Channels Television’s Sunrise Daily, Toriola expressed doubts about the government’s willingness to approve such a steep increase. However, he remains hopeful that a significant, albeit smaller, adjustment could be forthcoming. “We at MTN believe we need an adjustment of about 100%, but I’m not sure they will give us that,” he commented, suggesting a phased approach to tariff adjustments throughout the year.
Comparing Tariffs Globally
Toriola highlighted that Nigeria’s telecom tariffs are among the lowest globally, both for data and voice services. He argued that this situation is unsustainable and has led to a disparity when compared to other sectors like aviation and power, which have already seen tariff adjustments.
Sustainability and Quality of Service
The proposed tariff hike, according to Toriola, is crucial for the sustainability of the telecom sector. It would facilitate further investment in infrastructure, ensuring network stability and quality. “The tariff increase will allow us to continue investing in capacity and resilience, providing Nigerians with the high-quality service they deserve,” he explained.
Challenges of 2024
Reflecting on the past year, Toriola described 2024 as particularly challenging for the telecom industry due to economic factors like rising inflation and currency devaluation. Despite these hurdles, he acknowledged some positive steps by policymakers aimed at supporting the industry’s long-term viability.
Looking Forward
While the exact outcome of this tariff proposal remains uncertain, Toriola’s statements underline a critical moment for Nigeria’s telecom sector, balancing consumer affordability with the need for operational sustainability.
