Karl Toriola, chief executive officer (CEO) of MTN Nigeria, says telecommunication companies (telcos) in the country want a 100 percent increase in tariffs.

On April 25, 2024, telcos said their services were overdue for price increments as they have not raised rates in the last 11 years.

Speaking on the business segment of Channels Television’s Sunrise Daily on Friday, Toriola said the hike is necessary to address the escalating operational costs caused by inflation, and naira devaluation.

“We at MTN believe we need tariff adjustment of about 100 percent, I think the industry is pretty much aligned because we are all experiencing the same headwinds,” the CEO said.

“Now, the government is very sensitive to squeeze consumers’ wallets with the pressures that have come from inflation and currency devaluation on consumers.

“So, I am not sure they will give us 100 percent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be.”

He pointed out that while sectors like aviation and power have adjusted their tariffs to cope with rising costs, the telecommunications industry has yet to do so.

According to Toriola, global telecommunications industry statistics indicate Nigeria likely has the second or third lowest tariffs worldwide for both data and voice services.

‘TARIFF ADJUSTMENT CRITICAL TO MAINTAIN QUALITY SERVICE’

The proposed tariff adjustment, Toriola said, would not only ensure the sustainability of the telecoms industry but also enable companies to maintain and improve the quality of their services.

“What the tariff allows us to do is to continue to invest, continue to build capacity, build resilience, put in additional generators, authentic power supply system to give you stable and high-quality networks,” he said.

“So, it addresses sustainability and also enables the regulators to hold the big stick on the issue of quality of service and allows us consequently to invest in giving the quality of service Nigerians deserve.”

Toriola described 2024 as a “torrid year” for Nigeria’s telecommunications industry, citing the impacts of soaring inflation and the government’s devaluation of the naira.

He commended policymakers for taking steps aimed at ensuring the long-term sustainability of the sector.

Responding to concerns about potential service disruptions if the tariff increase is not approved, Toriola assured Nigerians that MTN and other network providers remain committed to keeping their networks operational.

“What I try to do is paint a realistic picture without being alarmist. The truth is that if you have any organisation that is spending 160 percent of what they earn in revenue, effectively at some point that organisation is going to shut down,” he said.

“So we are always going to act responsibly. We will use all our resources. We are keeping our networks up. We are not shutting down our networks at this point in time and we will continue to do so.”

Ghana has reportedly scrapped visa processes required to enter the country for citizens of all African nations.

This will make Ghana the fifth visa-free country in Africa, following Rwanda, Seychelles, The Gambia, and Benin.

The new policy is expected to boost travel, trade, and tourism.

In January 2024, President Nana Akufo-Addo pledged to make the West African country visa-free during the Africa prosperity dialogues (APD) which was held in Ghana.

“Many of you had to acquire a visa to attend this event,” he said.

“The government of Ghana is committed to ensuring visa-free travel for all Africans, and the process has begun to implement the policy this year.”

Joy Online, a local paper, reported that the policy has now been communicated to the ministry of foreign affairs and regional integration, and the ministry of interior, which have commenced preparations for its execution.

The report said the executive approval was granted on December 18, 2024, with the policy set to take effect before the end of Akufo-Addo’s term on January 6.

The Ghana Immigration Service is expected to announce the official start date.

In 2023, a similar move was made by Kenyan President William Ruto.

Ruto says Africans travelling to the country would no longer need visas by the end of the year.

The process was replaced by a new policy requiring intending travellers entering the country to apply for a $30 electronic travel authorization (eTA) and wait up to three days for a decision.

The National Association of Small and Medium Enterprises (NASME) says rising operational costs and high interest rates are toxic to the performance of micro, small and medium enterprises (MSMEs).

Speaking in an interview with NAN on Thursday, John Karunwi, Oyo state chairman of NASME, attributed the poor performance of SMEs in 2024 to low purchasing power and the high cost of doing business.

He expressed optimism that 2025 would usher in more impactful government policies to alleviate the challenges small businesses face.

Karunwi acknowledged the government’s efforts to improve the economy in 2024 but said the results are yet to be visible.

The NASME chairman said many interventions, such as the Bank of Industry’s (BoI) single-digit loans, have not reached a significant portion of small businesses.

“The impact of the high monetary policy rate leading to high cost of funds along with outrageously high operation costs resulting from high cost of raw materials, high cost of energy, high logistics, and so on are toxic to sector performance,” Karunwi said.

“Also, regulatory bodies are still making the cost of doing business high.

“The low purchasing power of Nigerians also affects sales performance.

“In summary, the overall performance of the Micro, Small and Medium Enterprise sub-sector did not improve significantly in 2024.”

Karunwi asked the government to implement policies that would create a better business environment, reduce operational costs, and improve access to energy and raw materials.

“We look forward to the government coming up with programmes that can make impacts and bring relief to the SMEs in a short time,” he said.

“We also look forward to better business environments and policies that will have direct impacts on SMEs as well as reduce cost of doing business.

“We look for improvement in the energy sector, improved access to raw materials at the rate that would bring reduction in our production cost and make our businesses competitive.

“We look forward to economic policies that will revive comatose MSMEs.”

On October 5, 2023, Vice-President Kashim Shettima said the federal government would support local manufacturers with N75 billion in a bid to bolster the manufacturing sector.