Telecoms Industry Proposes 100% Tariff Increase Amid Rising Costs

The telecoms industry in Nigeria is facing unprecedented challenges, and to stay afloat, operators are proposing a 100% increase in tariffs. According to Karl Toriola, CEO of MTN Nigeria, the industry is aligned on the need for this significant adjustment due to rising operational costs, inflation, and naira devaluation.

The Imperative for Tariff Adjustment

Toriola emphasized that the telecoms industry is not immune to the economic pressures facing the country. With inflation and currency devaluation affecting consumers’ wallets, the industry is struggling to maintain its sustainability. The proposed tariff increase is essential to ensure that telecoms operators can continue to invest in their networks, provide quality services, and maintain their resilience.

Comparison with Other Sectors

The telecoms industry is not alone in facing economic challenges, but it is unique in that it has not increased tariffs in recent years. In contrast, other sectors such as aviation and power have adjusted their tariffs to reflect the changing economic landscape. Toriola noted that Nigeria has some of the lowest tariffs in the world for data and voice services, making it essential to review and adjust these tariffs to ensure the industry’s sustainability.

The Benefits of Tariff Adjustment

A tariff increase would enable telecoms operators to invest in their networks, improve the quality of their services, and provide more reliable and efficient connectivity to their customers. This, in turn, would have a positive impact on the overall economy, as a robust and reliable telecoms infrastructure is essential for businesses, individuals, and communities to thrive.

A Call for Regulatory Support

Toriola expressed optimism that the government would consider the industry’s proposal and grant a substantial tariff increase. He emphasized that this adjustment is crucial for the industry’s sustainability and would ultimately benefit consumers by ensuring that they receive high-quality services.