Karl Toriola, CEO of MTN Nigeria, has advocated for a 100% increase in tariffs to counter soaring operational costs driven by inflation and naira devaluation. Speaking on Channels Television’s Sunrise Daily, Toriola explained that telecom operators have not adjusted prices in over a decade despite significant economic pressures.

“We at MTN believe we need a tariff adjustment of about 100%. The industry is aligned because we all face the same headwinds,” Toriola said. He noted that sectors such as aviation and power have already adjusted their prices, leaving telecommunications behind.

Toriola emphasized that the proposed hike would help ensure the sustainability of the telecoms industry and allow operators to maintain and improve service quality. He also highlighted Nigeria’s low data and voice tariffs, which he said are among the cheapest globally.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) warned on December 30, 2024, that operators might be forced to reduce services if tariffs are not reviewed urgently.

Subscribers Reject Proposed Tariff Increase

However, the National Association of Telecoms Subscribers (NATCOMS) has strongly opposed the proposed hike, calling it “insensitive” and a burden on consumers already grappling with rising living costs.

Sources indicate that the Nigerian Communications Commission (NCC) may have approved a 40% tariff increase starting January 2025, although the commission has yet to confirm this. Under the proposed adjustments:

• Voice calls would rise from ₦11.00 to ₦15.40 per minute.

• SMS charges would increase from ₦4.00 to ₦5.60.

• A 1GB data bundle would jump from ₦1,000 to ₦1,400.

NATCOMS, in a communique signed by its President Deolu Ogunbanjo and National Secretary Bayo Omotubora, described the proposed hike as exploitative. They argued that telecom services, already burdened by multiple taxes and levies, should not become inaccessible to ordinary Nigerians.

Balancing Industry Sustainability and Consumer Burden

Toriola acknowledged the government’s concern over adding pressure to consumers but suggested a phased approach to tariff adjustments. “I’m optimistic they will grant something substantial and progressively over the year,” he said, emphasizing the need for sustainable operations to avoid potential service disruptions.

Meanwhile, NATCOMS called on the NCC to reverse the approval, urging telecom operators to explore alternative revenue streams rather than burdening consumers.

As the debate continues, the sector faces a critical test of balancing operational viability with affordability for millions of Nigerians dependent on telecom services.