Nigerian mobile operators have agreed to channel the revenue from the proposed 100 per cent tariff increase into major network infrastructure upgrades and service quality.
This is a major condition for the telcos as they await final approval for the tariff hike, following discussions with the government and the Nigerian Communications Commission.
As part of the agreement, the country’s telecom regulator will oversee the implementation of these investments to ensure that telecom companies comply with the requirements.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, made these revelations in a column published in BusinessDay on Monday.
Mobile operators have been facing a tough operating environment recently, a situation largely driven by macroeconomic conditions such as naira-to-dollar volatility and inflation, which is currently pegged at 34 per cent.
Running costs, according to the operators, have surged by over 300 per cent in the last 18 to 24 months, making tariff adjustments necessary for the long-term sustainability of the telecom sector.
These have led to operators becoming reluctant to invest more in infrastructure as they continue to contend with a tough economic environment.
