Nigeria telecommunications operators have proposed a 100 per cent tariff hike on voice, data, and digital offerings to the Nigerian Communications Commission (NCC).

While disclosing the plans yesterday, MTN Chief Executive Officer, Karl Toriola expressed that the push for tariff hike approval is paramount for the sector’s sustainability and not for profitability. He pointed out that he doubted the 100 per cent tariff hike plan.

“This is not about profitability but the sustainability of the sector. I think the Federal Government was very supportive in 2024 with significant structural changes to support the industry, one of them was the Critical National Infrastructure (CNI) bill, which protects telecoms infrastructure as critical and gets all the security agencies behind it. The other is addressing the indebtedness of the entire sector, and we have been put to task on QoS obligations, and we shall put to task on that even more in 2025,” he said.

Toriola emphasized the need for sustainability, considering the telecommunications sector as a holding pillar of Nigeria’s economy. He added that the sector has experienced tough economic times owing to inflation and naira devaluation, just like every other sector.

“Sustainability is at the heart of what is driving the economy. If you don’t have a sustainable industry, the economy and well-being of the people will be affected. Yes, everyone in Nigeria has gone through difficult times in the last two years due to economic challenges: inflation, and naira depreciation among others. For us, we are not talking about profitability, but sustainability. Profitability will come on a long-term basis,” Toriola expressed.

The MTN Chief who doubted the 100 per cent hike approval stated that they are hopeful the regulators will show some consideration. He added that the realities of the economy are well established for everyone and that the right decisions will be made for the sustainability of the industry.

Additionally, Toriola noted that the cost of operation such as fuel price has reduced the financial profit accumulation with no thanks to naira depreciation and increasing cost of raw materials.

Credit: Technext