MTN Nigeria has raised concerns about a potential shutdown if tariffs are not adjusted to mitigate rising operational costs that are putting the telecommunications sector’s profitability at risk.
During a facility tour in Ibeju-Lekki, Lagos, MTN Nigeria’s CEO, Karl Toriola, highlighted the financial strain the sector has been enduring, stating that immediate action is needed to reverse the current losses. Toriola emphasized that MTN, with a subscriber base of approximately 78 million, has been relying on reserves built up over the last 20 years, which is no longer a sustainable business model.
He explained that the rising costs of operations, particularly the increasing price of diesel used to power the company’s base transceiver stations, have put significant pressure on the company’s financial health. Toriola underscored the need to restore profitability to the telecommunications industry, warning that without an upward review of tariffs, MTN could be forced to halt its operations.
“There should be no illusions—if the tariffs are not increased, we will be compelled to shut down,” Toriola warned. He also noted that MTN, which was once one of Nigeria’s top corporate taxpayers, has seen its tax contributions decrease due to the sector’s ongoing financial difficulties.
