MTN Nigeria’s CEO, Karl Toriola, has expressed confidence that the company will meet the Nigerian Communications Commission’s (NCC) three-month service quality deadline. The NCC has linked a proposed 50% tariff hike to improved network services, including better connectivity, customer experience, and expanded coverage. Toriola explained that the tariff increase would provide much-needed funds for network improvements, as the company faces rising operating costs.
Despite generating N2.4 trillion in revenue, MTN struggles with high expenses, including commissions, statutory payments, and infrastructure maintenance. The company reportedly spends 120% of its earnings, driven by factors such as frequent fibre cuts and economic inflation, which stood at 34.8% in December 2024. Toriola and Airtel Nigeria CEO, Dinesh Balsingh, believe the price increase will support network expansion and service quality.
However, while the tariff hike has been announced, it is yet to receive final approval from the NCC. Industry insiders note that regulatory approval is still required before the new pricing structure takes effect. Once implemented, call rates will rise from N6.40 to N9.6 per minute, while SMS and data prices will also increase. The changes are expected to unlock N6.59 trillion in revenues and boost network investments by at least N244.99 billion.
Source: BUSINESS DAY