Telecommunication companies in Nigeria, led by MTN Nigeria CEO Karl Toriola, are advocating for a 100% tariff increase to address escalating operational costs, inflation, and naira devaluation.
Toriola highlighted that these economic pressures have made the adjustment critical for the survival of the telecom industry.
Toriola acknowledged the government’s sensitivity to the financial strain on consumers but remained hopeful for a substantial tariff adjustment. “While we at MTN believe a 100% increase is necessary, we recognize the government’s caution in imposing additional burdens on consumers. Still, I am optimistic that a meaningful adjustment will be approved, possibly through gradual increments over the year,” he stated.
Toriola noted that other industries, including aviation and power, have already raised tariffs, leaving telecoms as one of the few sectors yet to align with current economic realities. He also pointed out that Nigeria continues to rank among the lowest globally in data and voice tariffs, based on international telecom statistics.
According to Toriola, a tariff increase would secure the industry’s sustainability by enabling continued investment in infrastructure, network capacity, and power systems. “These adjustments will not only ensure sustainability but also allow us to improve service quality and meet the expectations of Nigerian consumers,” he explained.
Describing 2024 as a particularly difficult year for the telecom sector, Toriola attributed the challenges to inflation and currency devaluation. However, he commended policymakers for steps taken to support the sector’s long-term viability.
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