Telecoms operators suggest 100% tariff hike

Nigerian telecommunications corporations have proposed a 100 per cent enhance of their tariffs, pending approval from the federal government.

The proposal, which has been submitted to the Nigerian Communications Commission, goals to deal with rising operational prices, together with inflation and elevated service supply bills.

The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, throughout an interview on Arise TV on Thursday.

However, the CEO stated that it stays unsure whether or not the Nigerian Communications Commission—the telecom regulator, will approve the proposal.

According to Toriola, the proposed tariff hike is critical for the sustainability of the trade, which has been dealing with vital monetary pressures on account of rising operational prices.

“We’ve put forward requests of approximately 100 per cent 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 stated.

Despite the challenges, Toriola expressed optimism that regulators would make the suitable determination, making an allowance for the realities of the sector.

The CEO emphasised that the main target is on making certain the long-term sustainability of the trade, reasonably than 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.”

The proposal comes amid rising prices for telecom corporations, pushed by components corresponding to inflation, trade charge fluctuations, and the growing worth of key operational inputs like diesel, energy era, and uncooked supplies.

Toriola highlighted the stress these rising prices have placed on telecom companies, making it tough for a lot of corporations to keep up worthwhile operations.

Earlier this week, operators issued an announcement warning that service disruptions are imminent except tariffs are adjusted to account for escalating operational prices.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo described the telecom sector as “under siege,” citing hovering operational prices pushed by inflation, risky trade charges, and rising power costs.

He famous that regardless of these challenges, tariffs have remained unchanged, leaving operators struggling to keep up high quality service and develop their networks.

The telecom chief warned that with out a right away tariff adjustment, operators could resort to service shedding, resulting in restricted availability of telecom providers in sure areas.

The first name for a tariff adjustment was made in April 2024, however no vital progress has been achieved.