MTN Reacts to FG's Approval of 50% Hike in Call, Data, SMS Tariffs
- MTN has reacted to the Federal Government of Nigeria's decision to increase call, data, and SMS tariffs
- The telecommunications giant assured subscribers that the tariff adjustment would improve services
- The Nigerian Communications Commission approved that telecommunication companies increase tariffs by 50%
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
MTN Nigeria says the recent 50% tariff increase approved by the Nigerian Communications Commission (NCC) will help improve service delivery.
In a statement, Karl Toriola, CEO of MTN Nigeria, said the adjustment would address rising operational costs and ensure critical investments in infrastructure in the telcom industry.
Source: Getty Images
Guardian reports that Toriola said:
“This tariff adjustment is an important step towards addressing economic pressures on the industry.
“It will enable us to maintain the investments needed to deliver reliable services to Nigerians.”
Also, in a statement, Tony Emoekpere, the president of the Association of Telecommunications Companies of Nigeria (ATCON), told Legit.ng that although the increase does not meet the request for a 100% increase, it reflected the NCC’s recognition of the industry’s operational challenges.
“While the approved tariff adjustment, capped at a maximum of 50%, does not fully address the operators’ request for a 100% increase, we understand that this is a step towards bridging the gap between operational costs and revenues.
“This adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality for the benefit of all Nigerians,."
He promised that the additional revenue from the tariff adjustments would be reinvested to enhance network quality, expand access, and deliver a better experience for consumers.
NCC approves tariff hike
The federal government approved a new 50% hike in the cost of telecom services 12 years after the last tariff hike was implemented, Punch reports.
Although the percentage increase is lower than the 100% requested by telecommunication companies, Various groups, including the Socio-Economic Rights And Accountability Project (SERAP), have rejected the new tariff hike and threatened court action.
Legit.ng reported that Deolu Ogunbanjo, NATCOMS president,t criticised the Nigerian Communications Commission (NCC) for failing to consult consumers during decision-making.
He noted that NATCOMS is not against a tariff review due to the challenges faced by telcos, but the approved 50% increase is excessive and recommended 5% to 10%.
His words:
"This will affect everyone, from the biggest industries to the smallest businesses like Point of Service (POS) operators. It will significantly increase their operational costs
“The telecoms sector is crucial to Nigeria’s economy, contributing double digits to the Gross Domestic Product. While we recognise its challenges, a 50% tariff hike is unacceptable.
“We painfully agreed to a marginal increase of up to 10%, but anything beyond that is too much for Nigerians already grappling with economic difficulties.”
MTN Nigeria's share price rise by 21%
In a related development, Legit.ng reported that MTN Nigeria's shares have appreciated by 21% just two weeks into 2025.
Meristem Stockbrokers predicts a target price of N254.22k for MTN Nigeria stocks, and investors will be watching to see what happens.
MTN stock had performed below expectations in 2024.
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Source: Legit.ng
