Telecommunications firms in Nigeria have suggested a 100 per cent increase in their rates and are awaiting regulatory approval from the Nigeria Communications Commission (NCC).
This proposal has been presented to the Nigerian Communications Commission (NCC) and aims to tackle the escalating operational expenses, including inflation and higher service delivery costs.
This was disclosed by MTN Nigeria’s Chief Executive Officer, Karl Toriola, during an interview on Arise TV on Thursday. However, the CEO indicated it is unclear if the Nigerian Communications Commission— the body regulating telecommunications—will sanction the proposal.
Toriola stated that the proposed tariff increase is essential for the industry’s viability, which has been under considerable financial strain due to soaring operational costs.
“We have submitted requests for roughly a 100 percent increase in tariffs to the regulators. I am skeptical they will accept such a significant increase because they are very sensitive to the current economic climate in the country,” Toriola remarked.
Despite the difficulties, Toriola remained hopeful that the regulators would arrive at a logical decision, considering the realities faced by the sector, stressing that the emphasis is on ensuring the industry’s long-term sustainability over immediate profits.
“I believe we are all aligned—policymakers, regulators, our Chairman of Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, and the industry—because we share concerns about a few critical issues. First and foremost, human rights are essential for propelling any economy. Without a sustainable industry, the overall economy and the welfare of the populace will suffer,” he added.
This proposal arises amidst increasing expenses for telecom companies, fueled by factors such as inflation, fluctuations in exchange rates, and the rising costs of crucial operational inputs like diesel, power generation, and raw materials.
