Nigeria’s telecommunications, on Friday, announced its proposal of a 100 per cent increase rate in its services as it awaits the approval of the Nigeria Communications Commission (NCC).
According to Telecos, the proposal has been presented to the NCC and aims to tackle escalating operational expenses, including inflation and higher service delivery costs.
Announcing the development, the Chief Executive Officer of MTN Nigeria, Karl Toriola, during an interview on Arise TV on Thursday said the proposed tariff increase is essential for the industry’s viability, which has been under considerable financial strain due to soaring operational costs.
However, the CEO indicated it is unclear if the Nigerian Communications Commission— the body regulating telecommunications—will sanction the proposal.
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“We have submitted requests for roughly a 100 per cent increase in tariffs to the regulators. I am sceptical they will accept such a significant increase because they are very sensitive to the current economic climate in the country,” Toriola remarked.
Despite the difficulties, Toriola remained hopeful that the regulators would arrive at a logical decision, considering the realities faced by the sector, stressing that the emphasis is on ensuring the industry’s long-term sustainability over immediate profits.
“I believe we are all aligned—policymakers, regulators, our Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, and the industry—because we share concerns about a few critical issues.
“First and foremost, human rights are essential for propelling any economy. Without a sustainable industry, the overall economy and the welfare of the populace will suffer,” he added.
This proposal arises amidst increasing expenses for telecom companies, fueled by factors such as inflation, fluctuations in exchange rates, and the rising costs of crucial operational inputs like diesel, power generation, and raw materials.
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