MTN CEO Advocates for 100% Tariff Hike as Telecoms Face Rising Costs
To ensure the survival of Nigeria’s telecoms industry, Karl Toriola, the CEO of MTN Nigeria, has announced that telecommunications companies are united in proposing a 100% increase in tariffs. The proposal is driven by escalating operational costs, persistent inflation, and the devaluation of the naira, all of which have placed significant pressure on the sector.
Speaking on the business segment of Channels Television’s Sunrise Daily on Friday, Toriola emphasized that while the industry faces these mounting challenges, the need for a tariff increase has become undeniable. However, he expressed some reservations about whether the government would approve a full 100% hike, though he remains hopeful for a substantial increase.
“We at MTN believe an adjustment of about 100% is necessary. The industry is aligned in this because we are all experiencing the same pressures,” Toriola said. “But, given the government’s sensitivity to the burden on consumers—especially with inflation and currency devaluation—I’m not certain we’ll get the full 100%. However, I am optimistic that we will see a meaningful increase, possibly phased in over time.”
Toriola also pointed out that other sectors such as aviation and power have already raised their tariffs, leaving telecoms as one of the few industries still holding steady. According to global telecoms statistics, Nigeria’s data and voice tariffs are among the lowest worldwide, positioning the country as one of the most affordable markets, despite the growing operational costs.
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He explained that an increase in tariffs would allow telecom companies to invest in necessary infrastructure upgrades, including power systems and network resilience. These improvements, he noted, would ultimately lead to better service quality and sustainability within the sector.
“What this tariff adjustment will do is provide us with the ability to continue investing—whether in additional power supply, network resilience, or capacity expansion,” Toriola stated. “This will not only enhance the quality of service but will also address long-term sustainability challenges facing the telecom industry in Nigeria.”
Describing 2024 as a particularly difficult year for the sector, Toriola highlighted the adverse effects of inflation and the naira’s devaluation on telecom companies. Despite these challenges, he acknowledged recent efforts by policymakers to introduce measures aimed at ensuring the industry’s long-term viability.
