Newscenter Media News Telecommunication operators in Nigeria have demanded a 100% tariff increase to ensure the industry’s sustainability.
This development was announced by the Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola while speaking during an interview on Arise TV on Thursday, January 2, 2025.
According to him, the telecom industry is now facing a sustainability threat that must be addressed through a tariff review.
He, however expressed pessimism that the industry regulator might not approve that quantum of increase due to the prevailing economic situation in the country.
“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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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 litre.
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, he stated.
“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.
By: Babajide Okeowo
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