By Oyinkansayo Wole-Bodunde.
MTN Nigeria’s CEO, Dr. Karl Toriola, is advocating for an increase in tariffs to ensure the sustainability of the telecommunications industry.
In a recent interview with Arise TV, Toriola emphasized the sector’s crucial role in driving economic growth and its potential for improvement.
Toriola revealed that MTN has requested a 100% tariff increase from regulators, but he doesn’t think it will be approved because of the current economic situation in Nigeria.
Despite this, he remains optimistic about the implementation of reforms that will enable the telecom sector’s sustenance.
He acknowledged that the industry faces significant challenges, including rising costs of power generation, raw materials, and licensing fees. These costs are exceeding revenue, despite revenue growth, making it impossible for the industry to sustain itself under the current structure.
Toriola also highlighted the impact of forex devaluation on operational costs and foreign exchange liabilities. He explained that every shift in the exchange rate requires provisions for foreign exchange loans or lease obligations, leading to FX losses.
The cost of doing business has significantly increased, shrinking profit margins and pushing operators into negativity. This has an effect on the Nigerian economy, impacting job creation and commercial activity.
Toriola noted that MTN alone is accountable for over 2 million jobs in the economy.
Despite these challenges, Toriola is enthusiastic about the progress of the telecommunications sector in 2025. He believes that operators, the government, and the Nigerian Communications Commission (NCC) are working together to address the industry’s sustainability and enable its growth.
