Chief Executive of MTN Nigeria, Karl Toriola has disclosed said that Telcos in that country have requested for a 100 percent increase in their tariffs but he doubts if the regulator will give its approval.
He said the Nigerian Communications Commission (NCC) is unlikely to approve that quantum of increases as it is sensitive to the country’s current economic situation.
“But we however are hopeful and optimistic that the realities are staring us in the face and the right decision will be taken for the sustainability of the industry,” he said in a TV interview.
Toriola said the telecom sector is currently faced with a sustainability challenge, as inflation and the naira’s devaluation keeps driving up cost of operation, adding the regulators are well aware of the situation and are in the process of addressing it.
Telcos in Nigeria have been pushing for an upward review of tariffs for the past decade, but in 2022, they proposed a 40 percent hike.
However, record losses since 2023 after a significant devaluation of the naira have further compounded their woes, increasing their requests for tariff hikes.
After losing N137 billion in 2023, MTN Nigeria for instance, declared N514.93 billion as a loss for the nine months ending September 2024, despite a 33.7 percent growth in service revenue to N2.37 trillion. Similarly, Airtel’s revenue fell by 46.9 percent to $755 million during the same period.
Toriola recently emphasised, “There should be no delusion; if the tariff doesn’t go up, we will shut down.”
The Association of Licensed Telecommunications Operators of Nigeria (ALTON), has also warned that if nothing is done about the tariffs, “we might begin to see in the new year grim consequences unfolding, such as service shedding; operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected.”
Other industry stakeholders have said that the fate of Nigeria’s telecoms industry in 2025 will be shaped by tariff conversations, and some believe the regulator is likely to approve increases.
Indeed, the Minister of Communications, Innovation and Digital Economy for Nigeria, Bosun Tijani recently acknowledged, “We think there may be a need for that.”
He noted, “Beyond the conversation about increase in tariff, which is what everyone has been talking about, yes, there may be a need for it, but there is so much that we need to do as a country to ensure that the sector is competitive.”
