Economy
Telcos Want 100% Tariff Hike in SMS, Calls, Data—MTN Nigeria CEO
By Adedapo Adesanya
Telecommunication operators in Nigeria, including MTN, Airtel and others, are seeking a 100 per cent increase in tariff as stakeholders battle it out for a much-expected rise in the cost of phone calls, SMS, and internet data subscription.
The chief executive of MTN Nigeria, Mr Karl Toriola, said this in an interview with Arise News on Thursday, though he expressed doubts that the regulator, the Nigerian Communications Commission (NCC), would accept this.
“Now, we’ve put forward requests of approximately 100 per cent and type increases to the regulators,” he said.
“I doubt they’re going to approve that quantum of increases because they’re very, very sensitive to the current economic situation in the country. But we’re hopeful and optimistic that the realities are staring us in the face and the right decisions will be taken for the sustainability of the industry,” he added.
Mr Toriola lamented that the the sustainability of the telecommunications industry in Nigeria needs to be addressed, if not, it could negatively impact Nigeria’s economy.
He painted a grim reality of the escalating costs of operations, which he said has been eroded by high inflation, Naira devaluation, and rising fuel prices.
“Telecommunications is a fundamental human right these days and a critical element towards driving an economy. And if you don’t have a sustainable industry, it’s going to affect your economy and the well-being of people. Yes, everyone in Nigeria has gone through difficult times in the last few years due to economic challenges, inflation, devaluation, et cetera, et cetera.
“But the challenge that we face and we’re not talking about profitability in the industry, we’re just talking about sustainability. Profitability will come on a longer-term basis,” he said.
“Official rates have gone from about 424.50 to about 1,550 odd at the end of the year. So that has driven our cost structures up drastically. So in paying for diesel, diesel has gone from pre-COVID times from 2,300 Naira to 1,000 plus Naira.
“Petrol has gone up several folds. The cost of power generation, the cost of procuring raw materials, what we call raw materials is a lot of things, batteries, fibre cables, base stations, towers, etc. To actually roll out and maintain these networks, we pay software licensing fees for these networks.
“The costs that we’re expending are actually exceeding our revenue, even though we are seeing revenue growth. And there’s no way that the industry can continue to sustain itself and provide the required quality of service under this structure,” he explained.
He tasked the goverment to understand the critical role of telecommunications in Nigeria’s development, noting that the industry creates value as well as jobs for millions.
“We’re not talking about profitability. We are talking about an existential threat to the entire industry. We’re the biggest players, including Airtel and us. If we are struggling with these kinds of cost structures, there’s no way the rest of the industry will not experience the same.
“And the truth is, this just doesn’t affect the large operators. Every part of the ecosystem that works backwards from there is affected by exactly the same thing because they’ve all seen their cost up.”
By Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
By Aduragbemi Omiyale
Analysts at Meristem Research have predicted that the inflation rate for June 2026 in Nigeria should marginally rise to 15.95 per cent on a year-on-year basis from the 15.93 per cent reported in May 2026.
The National Bureau of Statistics (NBS) is expected to release inflation numbers for last month later today, Wednesday, July 15, 2026.
In its report sighted by Business Post, Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
It disclosed that this marks a sharp reversal from most of June, when the ceasefire between the two countries helped drive oil prices lower, raising expectations of some relief on the inflation front.
With conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
“Nonetheless, some relief is likely from the food segment, where robust supply conditions across major producing regions and softening demand should continue to ease food price pressures,” it stated.
The team also explained that it projected a 15.95 per cent inflation rate because of the lingering effects of persistent food price pressures.
“However, we expect core inflation to moderate as the sharp reversal in energy prices begins to filter through to transportation, distribution, and other energy-related costs, easing underlying price pressures.
“On a month-on-month basis, the combined effect of lower petrol prices, a relatively stable Naira, and the gradual pass-through of reduced energy costs across the supply chain should exert further downward pressure on inflation.
“Based on our assessment, food inflation is expected to remain the key swing factor, as seasonal pre-harvest supply constraints are likely to offset some of the gains from lower logistics costs,” it said.
By Adedapo Adesanya
The duo of Central Securities Clearing System (CSCS) Plc and Afriland Properties Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.61 per cent on Tuesday, July 14.
CSCS Plc saw its stock value drop N9.08 to close at N82.40 per share compared with the preceding session’s N91.48 per share, and Afriland Properties Plc slid by 17 Kobo to sell at N15.00 per unit versus N15.70 per unit.
The losses recorded by the two securities pulled back the market capitalisation by N41.64 billion to N2.546 trillion from N2.587 trillion, and cracked the NASD Security Index (NSI) by 69.36 points to 4,242.31 points from 4,311.67 points.
It was observed that the exchange witnessed two price advancers during the session, led by FrieslandCampina Wamco Nigeria Plc, which gained N1.37 to end at N151.37 per share compared with the previous day’s N150.00 per share, and Food Concepts Plc chalked up 5 Kobo to settle at N2.50 per unit versus N2.45 per unit.
The volume of securities traded by market participants surged by 50.7 per cent to 13.7 million units from the previous 9.1 million units, while the value of securities went down by 79.7 per cent to N65.2 million from N320.4 million, and the number of deals crashed by 3.6 per cent to 27 deals from the previous session’s 28 deals.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc, which exchanged 2.3 billion units valued at N6.5 billion, and CSCS Plc with 73.9 million units transacted for N5.2 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
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