WARNING! ! Do You Have MTN Line? They May Shut Down Soon According To MTN CEO Karl Toriola, See Shocking Details
In order to continue operating, MTN Nigeria, the biggest telecom provider in the nation, has emphasized how urgently the telecom industry must earn a profit again. During a visit of MTN’ s facilities in Ibeju- Lekki, Lagos, on Monday, Fellows of the Media Innovation Program were given this information by MTN CEO Karl Toriola.
The head of MTN, who oversees over 78 million users, found that the industry has been suffering large losses and that quick action is required to stop this trend. Its 2023 Sustainability Report states that the operator has invested N2. 6 billion in corporate social responsibility and is currently making ends meet with the revenues it has amassed over the past 20 years.
” We must return the industry to profitability, ” he stated, emphasising the necessity for reform. He went on to explain that the business is now running on its reserves, which he said is not long- term viable. Telecom companies reaffirmed their demands earlier this year for a rate raise, the first in eleven years, in order to combat growing operating expenses and enhance service quality.
They contended that service standards and financial sustainability would keep deteriorating in the absence of such changes. Toriola reaffirmed that growing operational expenses, such as the increased cost of diesel needed to power base transceiver stations, are putting significant pressure on the industry.
He warned, ” There should be no delusion; if the tariff doesn’ t go up, we will shut down, ” underscoring the urgent need for tariff adjustments to reflect economic realities.
Toriola pointed out that these financial difficulties have caused MTN, formerly one of Nigeria’ s largest corporate taxpayers, to reduce its tax payments. MTN and Airtel have taken a conservative approach to capital expenditure for 2024 in light of their first- quarter results. Globacom and 9mobile, the nation’ s other two mobile providers, are not publicly traded.
Due mostly to foreign exchange losses brought on by the devaluation of the naira and high rates of inflation, MTN Nigeria recorded an astounding N519. 1 billion loss in the first half of 2024. In addition, Toriola issued a warning that the N250 billion debt owing by Nigerian banks could result in the suspension of Unstructured Supplementary Service Data banking services.
Until the debt is settled and tariffs are changed to reflect the current state of the economy, the mobile network operator is requesting regulatory authority to stop supporting USSD services used for banking transactions.
Toriola did, however, voice hope that Dr. Aminu Maida, the Executive Vice Chairman of the Nigerian Communications Commission, and Yemi Cardoso, the recently appointed Governor of the Central Bank of Nigeria, would step in to help address the ongoing financial crisis.
In his closing remarks, he emphasized the vital role that the telecom sector plays in bolstering Nigeria’ s economy and urged policymakers and regulators to take immediate action to avoid the disastrous effects of delay.
