MTN Nigeria has revealed that it has requested a 100 percent tariff increase from the Nigerian Communications Commission (NCC), though the approval of the proposal remains uncertain.

The request was disclosed by MTN Nigeria’s CEO, Karl Toriola, during an interview on Arise TV on Thursday. He explained that the proposed tariff hike is essential for the sustainability of the telecom sector, which is under significant financial pressure due to escalating operational costs.

“We’ve put forward requests of approximately 100 percent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.

Despite these challenges, Toriola expressed confidence that regulators would make the right decision, considering the realities facing the sector. He emphasized that the long-term sustainability of the industry is the primary goal, not short-term profitability.

“I believe we’re all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues. First, human rights, are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted,” he added.

The tariff increase request comes amidst mounting challenges for telecom operators, including rising inflation, fluctuating exchange rates, and higher prices for critical operational inputs such as diesel and power generation.

Toriola noted the strain these increasing costs have put on telecom companies, making it difficult for many to operate profitably.

Earlier this week, operators issued a warning that without a tariff adjustment, service disruptions are imminent. Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as “under siege,” pointing to soaring operational costs. Despite these challenges, tariffs have remained unchanged, leading to struggles in maintaining service quality and expanding infrastructure.

Without an immediate tariff hike, Adebayo warned that operators may have to reduce services, resulting in limited telecom access in certain areas.

The request for a tariff adjustment was initially raised in April 2024, but no substantial progress has been made. In response, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) called on the Federal Government to facilitate a dialogue with industry stakeholders to find a solution that balances affordability for consumers and the financial stability of telecom operators.

Both associations stressed that action is needed now to secure the future of Nigeria’s telecom industry, which plays a critical role in the country’s economy.

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