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Karl Toriola, the Chief Executive Officer of MTN Nigeria, has revealed that telecommunications companies are collectively proposing a 100% tariff hike to the Nigerian government. He attributed this request to the escalating operational costs, inflation, and the devaluation of the naira, which have placed immense financial strain on the industry.
During an appearance on the business segment of Channels Television’s Sunrise Daily on Friday, Toriola acknowledged that while the government might not approve the full 100% increase, he remains optimistic about a significant adjustment.
“We at MTN believe a 100% adjustment is necessary, and I think the industry agrees because we are all facing the same challenges. However, the government is cautious about further straining consumers, who are already under pressure from inflation and currency devaluation,” Toriola explained. “Even if we don’t get 100%, I’m hopeful for a meaningful increase, possibly implemented progressively over the year.”
Toriola emphasized that, unlike other sectors such as aviation and power, the telecom industry has yet to adjust its tariffs despite facing similar economic headwinds.
He also highlighted that Nigeria has some of the world’s lowest data and voice tariffs, ranking second or third globally in terms of affordability, according to international telecom statistics.
The MTN CEO stressed that an upward tariff adjustment would address sustainability challenges within the sector.
“Increasing tariffs will enable us to invest in network capacity, enhance resilience, and implement reliable power systems to ensure stable, high-quality services,” Toriola said. “This will not only secure the industry’s sustainability but also empower regulators to demand higher standards of service quality, which Nigerians deserve.”
Reflecting on the year 2024, Toriola described it as particularly challenging for the telecom sector due to soaring inflation and the government’s devaluation of the naira. However, he commended policymakers for initiating measures aimed at ensuring the industry’s long-term viability.
