Telecommunication companies in Nigeria are urging the government for a 100% increase in tariffs, citing inflation, operational costs, and naira devaluation as critical challenges threatening the industry’s survival. MTN Nigeria’s CEO, Karl Toriola, disclosed this during an interview on Channels Television’s Sunrise Daily on Friday, highlighting the sector’s urgent need for financial sustainability.
Toriola noted that while the telecom industry is aligned on the proposed tariff adjustment, he remains doubtful that the government will approve the full 100% increase. However, he expressed optimism about achieving a substantial increment or phased adjustments over the year.
“The government is sensitive to the pressures on consumers caused by inflation and currency devaluation. While 100% may not be granted, I am optimistic about a progressive increase that will help sustain the industry,” Toriola said.
The MTN CEO pointed out that, unlike sectors such as aviation and power, which have adjusted prices to reflect economic realities, the telecom industry continues to offer some of the lowest tariffs globally for voice and data services.
He emphasized that higher tariffs would ensure sustainability and enable investment in critical infrastructure to enhance service quality. “Increased tariffs will allow us to continue building capacity, improve network resilience, and address quality of service, ensuring Nigerians receive the reliable connectivity they deserve,” Toriola added.
Reflecting on 2024, Toriola described the year as challenging for the industry due to rising inflation and the naira’s devaluation. He acknowledged policymakers for steps taken to address these economic issues and ensure the telecom sector remains viable.
With Nigeria’s telecom industry playing a pivotal role in the economy, stakeholders are calling for regulatory action that balances consumer affordability with the sector’s operational needs, as talks on tariff adjustments continue into 2025.
