MTN Nigeria has reportedly proposed a staggering 100 percent increase in call and data tariffs. This announcement was made by the Chief Executive Officer of MTN Nigeria, Karl Toriola, who indicated that the proposal has been submitted to the Nigerian Communications Commission (NCC) for consideration.
Toriola shared this information through his official channels, expressing concerns about the ongoing economic challenges facing the telecommunications sector. He noted that while the request for a tariff hike aims to address rising operational costs, it remains uncertain whether the NCC will approve such a substantial increase given the current economic hardships experienced by many Nigerians.
“We’ve put forward requests of approximately 100 percent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola stated. This cautious tone reflects the delicate balance between maintaining service quality and affordability for consumers amidst escalating costs.
This proposal comes at a time when speculation about an imminent telecom service tariff hike in Nigeria has been rampant. The telecommunications industry has been under significant pressure due to soaring operational expenses driven by inflation, fluctuating exchange rates, and increased costs associated with service delivery.
Toriola highlighted that key expenses such as diesel and power generation have skyrocketed, with diesel prices soaring from approximately N230 per liter before the COVID-19 pandemic to over N1,000 per liter today. Such increases have outpaced revenue growth for major operators like MTN and Airtel, leading to urgent calls for tariff adjustments.
The financial strain on telecom operators is evident, with MTN reporting a staggering loss of N514.93 billion for the nine months ending September 2024, despite achieving a 33.7 percent growth in service revenue. Similarly, Airtel has faced a 46.9 percent drop in revenue during the same period. These losses underscore the pressing need for a review of tariffs to ensure the sustainability of services and maintain quality for subscribers.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, has also weighed in on the situation, threatening a potential shutdown of operations should there be no tariff hike. This statement adds urgency to the discussions around pricing adjustments as operators face mounting pressures from rising costs.
However, consumer reactions have been overwhelmingly negative towards any proposed tariff hikes. Many subscribers have expressed their dissatisfaction, with some even considering legal action against telecom companies if they proceed with such increases. Critics argue that any hike would exacerbate the financial burden on consumers already grappling with economic challenges.
As discussions continue regarding MTN’s proposal and its potential approval by the NCC, stakeholders across the telecommunications landscape are closely monitoring developments. The outcome will not only impact MTN’s operational strategies but also set a precedent for other telecom operators navigating similar challenges.
In summary, MTN Nigeria’s proposal for a 100 percent increase in call and data tariffs highlights the significant financial pressures facing the telecommunications industry amid rising operational costs and economic challenges in Nigeria. As stakeholders await regulatory decisions and consumer responses, the future of telecom pricing remains uncertain, with implications for both service providers and subscribers alike.
Share your story or advertise with us: Whatsapp: +2348033202396 Email: sentinelnewsng@gmail.com
