MTN Group CEO in Talks with NCC to Raise Tariffs

In efforts to mitigate the impact of foreign exchange fluctuations, MTN Group CEO, Ralph Mupita, revealed discussions with the Nigerian Communications Commission (NCC) regarding tariff adjustments.

During an interview with Bloomberg on Monday, Mupita addressed the challenges posed by currency devaluation on MTN’s operations, particularly in Nigeria, stating, “We obviously are engaged with the authorities and regulators to get some tariff increases for both voice and data, so that we can actually absorb some of the inflation-related and FX impacts that are in our operating costs, particularly the network operating costs.”

Mupita outlined three main strategies being pursued to address the FX impact, including negotiations with regulators, exploring borrowing options, and examining expenditure reduction measures. These efforts aim to counter the significant decline in the value of the naira, which adversely affected MTN’s earnings from the Nigerian market.

“The big impact on our results was that we had significant naira devaluation, the naira at the midpoint of the year was around 462. We ended the year at 907, almost 97% devaluation of the naira,” Mupita highlighted. He further explained that while the reported earnings were impacted, the underlying business performance remained resilient.

MTN Group continues to navigate challenges posed by currency fluctuations, seeking collaborative solutions with regulatory bodies to ensure sustainable operations amidst economic uncertainties.