MTN Nigeria’s CEO, Karl Toriola, has highlighted the urgent need for the telecommunications industry to return to profitability, citing escalating operational losses. Speaking during a media tour, Toriola emphasized that MTN, Nigeria’s largest telecom operator with 78 million subscribers, is surviving on profits accumulated over two decades, a situation he described as unsustainable. He called for immediate tariff reforms, pointing out that the industry has not seen a price hike in 11 years, even as operational costs—especially diesel prices—have surged.
Toriola warned that without tariff adjustments, the company could face the risk of shutting down, as current financial pressures, including a N519.1 billion loss in the first half of 2024 due to naira devaluation and inflation, are mounting. He also noted that MTN’s tax contributions have diminished as a result of these financial difficulties, leading the company to adopt a more conservative approach to capital expenditure for 2024. Additionally, MTN is considering suspending its USSD banking services over a N250 billion debt owed by Nigerian banks, unless tariffs are revised to reflect current economic conditions.
Despite these challenges, Toriola remains hopeful that the new Central Bank Governor, Yemi Cardoso, and the Nigerian Communications Commission will step in to address the financial crisis affecting the telecom sector. He emphasized the critical role the industry plays in Nigeria’s economic stability and urged the government to act swiftly to prevent further deterioration.
