MTN Nigeria has thrown its weight behind a significant tariff increase, requesting a 100% hike from the Nigerian Communications Commission (NCC). This move comes as the telecom giant struggles with increasing operational costs, driven by rising fuel prices and a weakening naira.

CEO Karl Toriola, during an interview on a local TV station, highlighted the 40% increase in operational expenses since January 2024.

This surge is primarily attributed to the skyrocketing diesel prices, which have jumped from N800 to N1,200 per litre, and the impact of currency devaluation on critical infrastructure investments.

Toriola emphasised the urgent need for tariff adjustments, stating that the sector’s profitability has declined by a substantial 25% over the past year despite the absence of any tariff increases since 2020.

He argued that the proposed 100% hike is vital to ensure the long-term sustainability of the telecom sector and support planned infrastructure investments worth $1.5 billion.

Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), painted a grim picture of the industry, describing it as “under siege.”

He highlighted the significant increase in operational expenses, including energy costs, inflation, and the devaluation of the Naira, while tariffs have remained static. This unsustainable situation is impacting the ability of operators to maintain service quality and invest in critical infrastructure upgrades.

READ ALSO:

MTN Exits Guinea Market with Sale to State-Owned Entity

The warning of potential service reductions, including limited access in certain areas, has raised serious concerns. This could severely impact businesses, individuals, and the overall digital economy of Nigeria.

The call for a tariff adjustment has been ongoing since April 2024, yet no concrete action has been taken. In response, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) have urged the Federal Government to engage in a constructive dialogue with industry stakeholders.

This dialogue should aim to find a balanced solution that addresses the financial needs of operators while ensuring affordability for consumers.

Both associations emphasise the urgency of the situation. The Nigerian telecom sector plays a vital role in the country’s economic growth and social development. Failing to address the current challenges could have far-reaching consequences for the entire nation.

Industry-Wide Concerns:

The Association of Licensed Telecommunications Operators (ALTO) has echoed MTN’s concerns, emphasising that Nigeria’s current telecom rates are among the lowest in Africa, falling 30% below regional averages. The association maintains that operators require a minimum 40% tariff increase to maintain existing service levels.

Potential Impact :

The NCC’s decision on MTN’s request, expected by March 2025, will have a significant impact on the 200 million mobile subscribers across all networks in Nigeria.

Nigerian telecommunications subscribers are already gearing up for a legal battle against telecom operators over a proposed 100% tariff hike that could significantly impact service costs nationwide.

This drastic increase, which would see the cost of a voice call double to N22.00 per minute, SMS prices rise to N8.00 per message, and 1GB of data cost N2,000, has been met with fierce opposition from the National Association of Telecommunications Subscribers (NATCOMS).

NATCOMS President Adeolu Ogunbanjo has strongly condemned the proposed hike, labelling it “excessive and unsustainable.” He has urged the Nigerian Communications Commission (NCC) to deny the operators’ request and is even threatening a class-action lawsuit if the hike proceeds without exploring alternative revenue-generating methods.

MTN Nigeria: Your One-Stop Solution for All Services

For seamless access to your services and assistance, MTN Nigeria customer care is always ready to help. Whether you’re trying to resolve an issue or simply need support, MTN Nigeria customer care number is available for quick resolution.

If you’re looking to manage your account, the MTN Nigeria login page makes it easy to access all your details. You can also download the MTN Nigeria app to handle your account on the go, giving you easy access to your services with just a few taps.

READ ALSO:

Telecom Giant MTN Ventures into Banking in South Africa

For self-service options, MTN online self service allows you to control everything from data plans to billing without needing to call in. Additionally, you can visit the MTN website for updates, promotions, and more.

And for a more personalised experience, don’t forget to check out My MTN, your go-to platform for managing your MTN services effortlessly. Whether you’re using MTN login or any of the other tools, managing your MTN account has never been easier.

The Road Ahead:

The proposed tariff hike by MTN Nigeria marks a critical stage for the telecom sector in Nigeria. The NCC’s decision will not only determine the financial health of operators but also impact the accessibility and affordability of telecommunications services for millions of Nigerians.