The Chief Executive Officer of MTN Nigeria, Karl Toriola, has said that the company is suffering losses and may shut down unless there is a tariff hike.
He emphasised the urgent need for the telecommunications sector to return to profitability to sustain its operations.
Toriola stated this during a tour of MTN’s facilities by Fellows of the Media Innovation Programme in Ibeju-Lekki, Lagos.
“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he stated.
He said the telecommunications network, with a subscriber base of about 78 million, has been accumulating significant losses and immediate action is necessary to reverse this trend.
According to Toriola, the firm was currently surviving on the profits it accumulated in about two decades, describing the situation as unsustainable in the long run.
He further pointed out 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.
Speaking further, Toriola also warned that it may suspend Unstructured Supplementary Service Data (USSD) banking services due to the N250 billion debt owed by Nigerian banks.
The mobile network operator is seeking regulatory approval to halt support for USSD services used for banking transactions unless the debt is resolved and tariffs are adjusted to reflect the economic realities.
However, Toriola expressed optimism that the new Governor of the Central Bank of Nigeria, Yemi Cardoso, and the Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida, would intervene to help resolve the ongoing financial crisis.
He emphasised the critical role the telecom industry plays in supporting Nigeria’s economy and urged the government and regulators to act quickly to prevent the dire consequences of inaction.
