MTN Nigeria's CEO, Karl Toriola, warns of a severe crisis in Nigeria's telecom sector. He calls for an urgent tariff increase to combat unsustainable pricing and rising operational costs. Toriola highlights that without immediate action, the industry faces potential collapse and a loss of investment.
In a recent address at the Telecom Investment Forum in Lagos, Karl Toriola, CEO of MTN Nigeria, highlighted the severe crisis gripping Nigeria's telecommunications sector. Toriola described the situation as "deeply troubling," with the industry now metaphorically residing in an "intensive care unit." He underscored the pressing need for a tariff increase to address the unsustainable pricing and escalating costs that threaten the sector's viability.
Despite significant growth over the past two decades, the telecom industry is currently struggling under the weight of rising operational expenses and stagnant pricing structures. Toriola pointed out that the financial returns in the sector have diminished to a level where they endanger its survival. He criticized the current pricing model, which has remained unchanged for over a decade, as untenable in the face of inflation and currency devaluation.
The CEO emphasized that without immediate and decisive action, including a necessary increase in tariffs, the sector risks losing the confidence of investors. He noted that the challenges extend beyond regulatory hurdles to include soaring costs associated with infrastructure maintenance and capital investment.
While Toriola acknowledged recent progress in negotiations with regulatory bodies, he stressed that swift, qualitative action is essential to prevent a total collapse of the telecom industry. The call for a tariff adjustment reflects a critical effort to stabilize and revive the sector amidst mounting economic pressures.
