MTN Nigeria, the leading telecom operator in the country, has defended its decision to increase tariffs, explaining that the company would not be able to continue operations without this adjustment, News About Nigeria reports.
The Chief Executive Officer of MTN, Karl Toriola, made this known on Monday during a tour of MTN’s facilities by Fellows of the Media Innovation Programme in Ibeju-Lekki, Lagos.
He stressed the urgent need for the telecommunications sector to return to profitability to sustain its operations.
The MTN chief, who has about 78 million subscribers under his watch, noted that the sector has been accumulating significant losses and that immediate action is necessary to reverse this trend.
Toriola further disclosed that the company is currently operating on its reserves, which he described as unsustainable in the long run.
“We must return the industry to profitability. There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said.
Recall that earlier this year, telecom operators renewed calls for a tariff hike—the first increase in 11 years—to address rising operational costs and improve service quality. Without such adjustments, they argued, financial viability and service standards will continue to decline.
He, therefore, reiterated that the sector faces critical pressures from rising operational costs, including escalating diesel prices required to power base transceiver stations.
Toriola noted that 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 have adopted a cautious approach to capital expenditure for 2024.
