Telecommunication operators in Nigeria have asked the Nigerian Communications Commission to approve a 100% increase in tariffs in the first quarter of 2025.
In a proposal submitted to the commission, the telcos said the increase would help address rising operational costs driven by inflation and nairaâs devaluation.
The telcos’ decision was communicated by Karl Toriola, CEO of MTN Nigeria, while speaking on AriseTV on Thursday, January 2, 2025.
According to Toriola, the sector is grappling with sustainability challenges, warning that failure to adjust tariffs could jeopardize the industryâs survival.
Toriola said:
However, the CEO expressed that whether the Nigerian Communications Commissionâthe telecom regulator- will approve the proposal remains uncertain.
Despite the worries, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector, Punch reports.
He added.
The CEO explained that the proposed increase is to ensure the industry’s long-term sustainability rather than short-term profitability.
The telecom sector has faced growing financial strain, with operating costs outpacing revenues despite growth in service income.
MTN Nigeria reported a record N514.93 billion loss for the nine months ending September 2024, following a N137 billion loss in 2023.
Despite a 33.7% rise in service revenue to N2.37 trillion, Airtel also reported a 46.9% drop in revenue to $755 million over the same period.
Ealier, TimesNow.com.ng reported that the NCC had authorised Exchange Telecommunications Limited to separate from MTN Nigeria Communications Limited.
Exchange Telecoms was found to have provided insufficient justification for its inability to cover the expenses, according to NCC.
The business is currently the sole supplier of international call transit from all Nigerian Mobile Network Operators (MNO) to A-Z destinations abroad.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
