MTN Nigeria, di largest telecom operator for Nigeria, don dey stress say di telecommunications sector must return to profitability to sustain their operations. Di Chief Executive Officer of MTN, Karl Toriola, make dis known on Monday during a tour of MTN’s facilities by Fellows of di Media Innovation Programme in Ibeju-Lekki, Lagos.
Toriola, who dey oversee about 78 million subscribers, point out say di sector dey accumulate significant losses and say immediate action dey necessary to reverse dis trend. According to am, di company dey survive on di profits dem accumulate over two decades.
“We must return di industry to profitability,” he state, emphasizing di necessity for reform. He further elaborate say di company dey operate on their reserves, which he describe as unsustainable in di long run.
Earlier dis year, telecom operators renew calls for tariff hike—the first increase in 11 years—to address rising operational costs and improve service quality. Without such adjustments, dem argue, financial viability and service standards go continue to decline.
Toriola reiterate say di sector face critical pressures from rising operational costs, including escalating diesel prices required to power base transceiver stations. He warn, “There should be no delusion; if di tariff no go up, we will shut down,” underscoring di urgent need for tariff adjustments to reflect economic realities.
Toriola note say MTN, once one of Nigeria’s top corporate taxpayers, has seen its tax contributions decline as a result of these financial challenges. Reflecting on their first-quarter results, MTN and Airtel adopt a cautious approach to capital expenditure for 2024.
In 2024, MTN Nigeria report a staggering N519.1bn loss in di first half of di year, primarily due to foreign exchange losses stemming from di naira’s devaluation and high inflation rates. Toriola also warn say dem may suspend Unstructured Supplementary Service Data (USSD) banking services due to di N250bn debt owed by Nigerian banks.
However, Toriola express optimism say di new Governor of di Central Bank of Nigeria, Yemi Cardoso, and di Executive Vice Chairman of di Nigerian Communications Commission, Dr. Aminu Maida, would intervene to help resolve di ongoing financial crisis. He conclude by stressing di critical role di telecom industry play in supporting Nigeria’s economy, urging di government and regulators to act quickly to prevent di dire consequences of inaction.
