Why Nigerian telecom operators seek 100% tariff increase – MTN CEO Karl Toriola
By Jeffrey Agbo
Chief Executive Officer of MTN Nigeria, Karl Toriola, has revealed that telecom operators in the country have requested a nearly 100% tariff increase to safeguard the industry’s sustainability rather than boosting short-term profits.
In an interview on Arise TV on Thursday, Toriola highlighted the financial challenges facing the sector, which he said threaten service quality, employment and economic growth. He explained that a tariff review is critical to addressing these sustainability concerns.
However, Toriola acknowledged that the Nigerian Communications Commission (NCC) might not approve the full extent of the proposed increase.
“We’ve put forward a request of approximately 100% tariff increases to the regulators. I doubt they’re going to approve that quantum of increases because they’re very sensitive to the current economic situation in the country,” he said.
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While emphasising that telecommunications is a fundamental human right and a critical element for driving an economy, Toriola noted that without a sustainable industry, the economy and the well-being of Nigerians will suffer.
He highlighted how inflation, foreign exchange devaluation and rising energy prices have drastically increased operational expenses for telecom operators.
According to him, diesel costs have risen from pre-COVID levels of N230 to over N1,000 per liter.
The official exchange rate has shifted from N424.50 to about N1,550 at the end of 2024, drastically increasing the cost of importing critical infrastructure like base stations, which now cost nearly four times more than they did two years ago.
“These cost increases are outpacing revenue growth. If large operators like MTN and Airtel are struggling, the impact on smaller players and the ecosystem is even more severe,” he explained.
