*Dr. Karl Toriola, CEO of MTN Nigeria Communications Plc, affirms the Mobile Network Operators have submitted a proposal for tariff increments to the Nigerian Communications Commission for consideration, stating the Telcos’ focus is to ensure ‘long-term sustainability’ of the industry, rather than short-term profitability in the economy

Gbenga Kayode | 绿帽献妻

Agitations for tariff increments for telecoms consumers seem unabated for now in the Nigerian telecoms ecosystem.

绿帽献妻 reports the Mobile Network Operators (MNOs) have pushed further by proposing 100 percent upward adjustments in their tariffs, pending the expected approval of the Federal Government through the Nigerian Communications Commission (NCC).

Dr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria Communications Plc, Thursday, January 2, 2025, disclosed this development.

Toriola, while featuring in an interview on Arise TV Thursday, affirmed the telecoms companies had submitted the proposal to NCC for consideration and approval.

Dr. Karl Toriola, CEO of MTN Nigeria Communications Plc

The CEO of MTN Nigeria, during the interview monitored in Lagos, noted the Telcos’ proposal for tariff increases is aimed at addressing the soaring operational costs, including inflation and increased service delivery expenses in the country’s telecoms environment.

Tariff increase proposal to ensure telecoms long-term sustainability, by Toriola

Amid the continued agitations and attendant optimism for tariff increments, Dr. Toriola, however, expressed reservations, stating the Telcos’ move yet remains uncertain whether the NCC 鈥斅� the telecoms sector regulatory Commission 鈥� would approve the proposal after all.

Still, the Chief Executive of MTN Nigeria justified the MNOs’ request, noting the proposed tariff hike is necessary for the sustainability of the industry.

According to him, the important sector of the Nigerian economy has been facing significant financial pressures due to rising operational costs in recent times.

He further said: 鈥淲e鈥檝e put forward requests of approximately 100 percent tariff increases to regulators.

鈥淚 doubt they鈥檙e going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,鈥� Toriola said.

Despite the current industry challenges, he expressed optimism that the Commission would make the right decision, in view of the realities in the telecoms sector.

The MTN Nigeria CEO equally emphasised the focus of the continued agitations for tariff increments is on ensuring the long-term sustainability of the industry, rather than short-term profitability.

He averred: “I believe we鈥檙e all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry.

“We鈥檙e united because we share concerns about a few fundamental issues.”

Earlier, Dr. Toriola October 21, 2024, during a tour of the Telco鈥檚 facilities by Fellows of the Media Innovation Programme at Ibeju-Lekki, in Lagos, had raised the alarm that the sector has been accumulating significant losses that require an immediate, necessary action to reverse this ugly trend.

He noted MTN with a corporate social investment of N2.6billion, according to its 2023 Sustainability Report, is now surviving on the profits it accumulated in about 20 years.

As regards the need to effect tariff increments for telecoms consumers, he stated: “We must return the industry to profitability.”

The MTN Chief as well explained that the firm is currently operating on its reserves, which Toriola described as 鈥渦nsustainable鈥� in the long run.

Is the Nigerian telecoms sector ‘under siege’?

The Association of Licensed Telecommunications Operators of Nigeria (ALTON), in a message earlier this week, also warned the industry stakeholders, that service disruptions, including load shedding, are imminent unless tariffs are adjusted to account for escalating operational costs.

Engr. Adebayo, Chairman of ALTON, in the statement, described the telecoms sector as one 鈥渦nder siege”.

The Chairman also cited increasing operational costs, driven by inflation, volatile exchange rates, and rising energy prices.

Adebayo said despite the apparent challenges in the system, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.

The Chairman of ALTON warned that without immediate upward tariff adjustments, network operators might resort to outright load shedding, leading to limited availability of telecoms services in certain areas in the Nigerian ecosystem.

NCC and protection of telecoms consumers’ rights, interests

In consonance with the Commission’s consumer-centric leadership approach, Dr. Aminu Maida, Executive Vice-Chairman and CEO of NCC, in August 2024, had clarified certain misinformation about alleged regulatory approval for tariff increments in the country.

An online new medium was said have falsely stated: “The Nigerian Communications Commission has approved tariff increases for MTN, Airtel, Glo, and other telecoms companies.

鈥淭he new increase affects voice, SMS, data, and other services across the telecom industry.

“The new increase will see Nigerians pay more for telecom services.鈥�

Dr. Maida, in a terse statement via his verified social media account, however, reacted to the misinformation and wrote: 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 telecoms regulator further said: 鈥淭he NCC has neither approved any new Telecom Tariff Plans nor hike as reported on online. The public is advised to please disregard.

鈥淣CC issued a directive for all operators to simplify their current tariff plans in a transparent and fair manner for consumers.鈥�

Meanwhile, on the need for MNOs to maintain profitable operations, going forward, Toriola, CEO of MTN Nigeria, has stated: “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.鈥�

The telecoms companies have contended their move for tariff increments largely results from rising costs for telecoms companies, driven by factors, including inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.

Toriola further justified the MNOs’ request for approval of tariff adjustments as he highlighted the pressure the rising costs of operations have exerted on telecoms business operations in Nigeria.

According to him, the situation has made it difficult for several service providers to maintain “profitable” operations.

It is recalled the first call for a tariff adjustments occurred April 2024, but no significant progress has been achieved, according to report.

In response to the growing financial strain in the industry, ALTON and the Association of Telecommunications Companies of Nigeria at a point issued a joint statement, urging the Federal Government to facilitate a constructive dialogue with industry stakeholders.

The Telcos further stressed the need for a framework that balances consumer affordability with operators鈥� financial sustainability, following 11 years of tariff stability.

The service providers maintained, that with a shared commitment to preserving the future of telecommunications, all stakeholders should act before it鈥檚 too late.

According to the MNOs, failure to do so now will risk the survival of most critical industries in the Nigerian economy.

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