*Karl Toriola, CEO of MTN Nigeria Communications Plc, emphasises hikes in costs of services have become inevitable in view of the current inflationary trend, Naira devaluation and high cost of living in the economy

Gbenga Kayode | 绿帽献妻

In regard to the current inflationary trend, Naira devaluation, Foreign Exchange (Forex) blues, and high cost of living in the economy, stakeholders in the telecoms sector of the Nigerian economy, again, have renewed their call for increments in products and services tariffs in the ecosystem.

绿帽献妻 reports the stakeholders, including the Mobile Network Operators (MNOs) stated this Tuesday, August 13, 2024, at a telecoms investment forum organised by Financial Derivatives Company (FDC) Limited, in Lagos.

Speaking at the event, Mr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria Communications Plc, said that the West African country鈥檚 telecommunications sector is currently 鈥渋n Intensive Care Unit鈥� (ICU).

Mr. Karl Toriola, CEO of MTN Nigeria Communications Plc

He asserted that hikes in costs of services have become inevitable in the telecoms sector of the economy.

According to the MTN Nigeria CEO, though the sector has grown over the past two decades, it is now being threatened by rising costs and unsustainable pricing in the country鈥檚 economy.

He also highlighted the severe sustainability challenges faced by telecoms operators across the country.

The sector is now threatened by rising costs and unsustainable pricing, making a price increase an 鈥渁bsolute necessity鈥�, stated he.

The MTN Nigeria CEO asserted that 鈥渜ualitative action needs to be swift and decisive to prevent the collapse of this industry鈥� as time is of the essence.

Toriola further said: 鈥淭here鈥檚 no way on the surface of the earth, in the kind of inflationary environment and Forex devaluation that we鈥檝e seen, that an industry can maintain prices the same for 11 years.

鈥淭he telecoms sector has faced escalating costs across the board 鈥� from the cost of capital to the soaring expenses of maintaining infrastructure like base stations and diesel generators.鈥�

He declared: 鈥淲ithout adjustments to pricing, the industry鈥檚 ability to function and attract investment is in jeopardy.鈥�

NCC EVC: No approval for telecoms tariff plans or hikes

It is recalled Dr. Aminu Maida, Executive Vice-Chairman/CEO of the Nigerian Communications Commission (NCC), recently asserted that the telecoms sector regulatory Commission has neither approved any telecom tariff plans nor hikes, contrary to a recent misleading report in the public space.听

The telecoms sector regulatory Commission Saturday, August 3, 2024, clarified that it had not approved fresh telecoms tariff plans/hikes for the Mobile Network Operators for any increments in product and service costs for telecoms consumers, contrary insinuations in certain quarters.

Reacting to the misinformation in the telecoms ecosystem Dr. Maida, via his verified social media account, stated: 鈥淟ike the others, this is FAKE NEWS!

鈥淭he Commission has neither approved any Telecom Tariff plans nor hike as this report claims.鈥�

The NCC made the clarification in response to certain misinformation making the rounds in the media, that the Commission has introduced new tariff plans and pricing rules for the telecoms industry.

The alleged approval for tariff increments was also connected to a regulatory document titled, 鈥淕uidance on the Simplification of Tariffs in the Nigerian Communications Sector,鈥� which the Commission published on its corporate Web site recently.

Subsequently, Commission further flagged the photo collage of misleading news reports on its X page, restating that there are no approved tariff plans, or pricing updates for MNOs.

Toeing the Commission鈥檚 line of response, network operators equally debunked claims of a tariff increase approval by the NCC, the industry regulator.

Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators in Nigeria (ATCON), in a text message (SMS) also acknowledged that 鈥淭elcos have not been granted any approval for tariff review,鈥� according to The Punch report.

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