NCC, MTN, Other Telcos Reportedly Agree on 100% Tariff Hike, to Invest Proceeds on Infrastructure
- Telecommunication providers in Nigeria have agreed to invest the proposed 100% tariff hike into network infrastructure development
- The development comes as the telecom firms await the final approval of the increase by the government and NCC
- MTN Nigeria’s chief executive officer, Karl Toriola, revealed that the NCC will supervise the implementation of the revenue investment
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigerian mobile telecommunication operators have agreed to invest the revenue from the proposed 100% tariff hike into critical network infrastructure upgrades and improved service delivery.
These are the main conditions for the operators, who expect final approval for the tariff hike after discussions with the Nigerian government and the Nigerian Communications Commission (NCC).
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NCC gives conditions for tariff hike implementation
As part of the deal, NCC will supervise the implementation of these investments to ensure telcos comply with the requirements.
Karl Toriola, MTN Nigeria’s chief executive officer (CEO), disclosed this in a recent article on BusinessDay.
The telcos have lamented a challenging operating environment caused by naira devaluation and inflation, which threaten their operations.
Telcos lament high operating costs
According to the telcos, operators have faced high running costs, which have surged by over 300% in the last 24 months, necessitating tariff adjustments for the industry.
According to the report, the hurdles have led to operators’ reluctance to invest in infrastructure upgrades.
Due to these challenges, telcos are seeking a 100% tariff hike, a proposal rejected by subscribers.
Toriola agreed that the proposed tariff would be capped to ensure it remains significantly lower than price increases in other sectors, such as energy and oil.
The MTN Nigeria boss said that the negotiations between players and the government have focused on finding the right balance while aligning with pricing in other markets.
According to reports, foreign investments in the industry dipped to $14.4 million in the third quarter of 20024, representing an 87% drop from the $113.42 million recorded in Q2 2024.
Toriola stressed that the balance between tariff hikes and investment commitments will boost investors’ confidence in the industry and create a pathway to sustainability.
MTN boss explains the benefits of tariff adjustment
He argued that higher prices would improve networks, relevant services, and customer experience, fostering growth.
The telecom boss stressed the potential of Nigeria’s digital economy, saying that while it has progressed significantly, it is still in the early growth stages.
He applauded the government’s decision to establish a sustainable tariff regime, describing it as bold and necessary to ensure continued economic growth.
Airtel CEO asks FG to approve call and data tariff hike
Legit.ng earlier reported Airtel Nigeria's CEO has asked the Nigerian government to approve the proposed 100% tariff hikes.
Dinesh Basigngh cited Nigeria's rising operational costs and inflation as the reason for the hike.
The Aitel boss disclosed this in an open letter to the government, saying that tariffs in the sector have remained stagnant for over a decade.
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Source: Legit.ng
