MTN Group has asked the Nigerian government to reverse a directive cancelling an increase in telecom tariffs implemented by operators last month, citing rising costs in the industry.
The local unit of Africa’s largest wireless carrier, the Lagos-listed MTN Nigeria Communications, is engaging with the industry regulator to push through the price increase, CEO Karl Toriola said on Monday.
The Nigerian Communications Commission this month ordered mobile companies to reverse the 10% tariff hike, citing the non-approval of its board. MTN started a phased implementation of the increase in mid-September.
Wireless-service providers in Nigeria are facing increased operating costs, with inflation accelerating to a 17-year high of 20.7% in September. That’s been compounded by a weakening currency and a more than 200% jump in the price of diesel, which is required to power towers across the country due to the poor electricity supply.
Besides soaring costs, the country’s largest telecom service provider is monitoring the impact of flooding on its operations, the CEO said, adding that the impact on the business has been “minimal”.
