By Milcah Tanimu
Karl Toriola, CEO of MTN Nigeria, has declared that the country’s telecommunications sector is in a “deep crisis” and urgently needs a tariff increase to prevent collapse. Speaking at the telecom investment forum in Lagos, Toriola highlighted the severe sustainability challenges faced by telecom operators, including rising costs and unsustainable pricing.
Despite the sector’s growth over the past two decades, Toriola noted that escalating expenses and a harsh economic environment have made current pricing untenable. He emphasized that without an increase in tariffs, the sector’s viability and ability to attract new investment are at risk.
Toriola pointed out that the returns from telecom investments are currently so low that they threaten the industry’s survival. He criticized the static pricing, arguing that it is unrealistic given the ongoing inflation and currency devaluation.
The CEO acknowledged recent progress in discussions with regulatory authorities but stressed that urgent, decisive action is needed to address the crisis and prevent further deterioration. He warned that without immediate and effective changes, the telecom sector’s future is in jeopardy.
