https://en.sputniknews.africa/20250103/nigerian-telecoms-firms-ask-regulators-for-100-tariff-hike-due-to-rising-costs-mtn-nigeria-ceo-1070012426.html
Nigerian Telecoms Firms Ask Regulators for 100% Tariff Hike Due to Rising Costs: MTN Nigeria CEO
Nigerian Telecoms Firms Ask Regulators for 100% Tariff Hike Due to Rising Costs: MTN Nigeria CEO
Sputnik Africa
Under Nigerian law, the Nigerian Communications Commission (NCC) regulates prices and telecoms license holders must obtain regulatory approval before... 03.01.2025, Sputnik Africa
2025-01-03T16:33+0100
2025-01-03T16:33+0100
2025-01-03T16:33+0100
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Nigerian telecoms companies asked regulators for almost a 100% tariff increase amid rising costs of operations, said Karl Toriola, CEO of the Nigerian subsidiary of MTN, South Africa's mobile telecommunications provider on the continent.The rising costs of operations, exceeding current revenue, threaten the quality of service and the broader telecommunications ecosystem, according to Toriola.The industry may face potential service disruptions, including service shedding, if tariff increases are not approved, chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON) Gbenga Adebayo stated at the Stakeholders End of the Year Dinner in Lagos last week.However, the president of the Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS) Sina Bilesanm countered this, arguing that operators can increase tariffs within existing regulations and that competitive pressures prevent excessive hikes.Nigerian telecoms companies have repeatedly requested a tariff increase as the industry is facing an existential threat due to unsustainable cost structures caused by inflation, currency devaluation and rising fuel prices.According to the November report from the Nigerian National Bureau of Statistics, inflation in the country rose to 34.6% on an annual basis.
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Nigerian Telecoms Firms Ask Regulators for 100% Tariff Hike Due to Rising Costs: MTN Nigeria CEO
Elizaveta Roschina
Writer/Editor
Under Nigerian law, the Nigerian Communications Commission (NCC) regulates prices and telecoms license holders must obtain regulatory approval before increasing tariffs, which is reportedly causing concern among telecom companies.
Nigerian telecoms companies asked regulators for almost a 100%
tariff increase amid rising costs of operations, said Karl Toriola, CEO of the Nigerian subsidiary of MTN, South Africa's mobile telecommunications provider on the continent.
"Now, we’ve put forward requests of approximately 100% and type increases to the regulators," he told a local broadcaster.
The rising costs of operations, exceeding current revenue, threaten the quality of service and the broader telecommunications ecosystem, according to Toriola.
"The costs that we’re expending are actually exceeding our revenue, even though we are seeing revenue growth. And there’s no way that the industry can continue to sustain itself and provide the required quality of service under this structure," Toriola explained.
The industry may face potential service disruptions, including service shedding, if tariff increases are not approved, chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON) Gbenga Adebayo stated at the Stakeholders End of the Year Dinner in Lagos last week.
However, the president of the Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS) Sina Bilesanm countered this, arguing that operators can increase tariffs within existing regulations and that competitive pressures prevent excessive hikes.
Nigerian telecoms companies have repeatedly requested a tariff increase as the industry is facing an existential threat due to unsustainable cost structures caused by inflation, currency devaluation and rising fuel prices.
According to the November report from the Nigerian National Bureau of Statistics,
inflation in the country rose to 34.6% on an annual basis.