MTN Nigeria, the country’s largest telecommunications operator, is facing unprecedented financial challenges. CEO Karl Toriola revealed that the company has been brought to its “knees financially” due to rising operational costs, prompting calls for tariff hikes to sustain operations and investments in Nigeria’s digital future.
Toriola emphasized that despite generating N2.4 trillion in revenue, the telco spends over 60 percent on commissions and operating expenses. When interest payments on loans, statutory licenses, and other obligations are factored in, the company struggles to break even. “We are spending 120 percent of what we earn,” he stated, highlighting that hidden costs, including 1,000 fibre cuts per month and inflation surging to 34.8 percent in December 2024, have exacerbated the situation.
The Nigerian Communications Commission (NCC) recently announced a 50 percent tariff increase tied to improved network quality, including better connectivity, enhanced customer service, and greater coverage. Toriola expressed optimism about meeting the NCC’s three-month service quality deadline, stating that the tariff hike would unlock additional funding to expand services and improve customer experiences.

The proposed price adjustments will increase the floor price of calls from N6.40 to N9.6 per minute, while SMS charges will rise from N4 to N6. The cost of 1GB of data will move from N287.5 to N431.25, with the average call rate expected to climb to N16.5 per minute from N11. This could unlock revenues of N6.59 trillion and enable network investments worth N244.99 billion.
Toriola noted that the tariff increase would provide much-needed resources for service redundancy and better customer experiences. “Based on our projections, there would be more cash flow, meaning additional funding to expand and provide quality service,” he said.
Airtel Nigeria CEO Dinesh Balsingh shared similar sentiments, stating that the price hike would enable continued investment in network infrastructure and the development of products tailored to customer needs.
However, industry insiders revealed that despite the NCC’s announcement, final approvals are still pending. According to sources, every proposed price increase must undergo an approval process with the regulator. “We don’t have the price increase in our hands yet,” one insider said, indicating that telcos are awaiting the NCC’s response.
Sources