MTN Nigeria, the country’s largest telecom operator, has raised concerns over its financial sustainability, with its CEO, Karl Toriola, warning of an imminent shutdown if tariffs are not increased.
Speaking during a facility tour in Ibeju-Lekki, Lagos, Toriola emphasized the urgent need for the sector to return to profitability to avoid collapse.
With around 78 million subscribers, MTN has been accumulating losses despite a corporate social investment of N2.6 billion.
Toriola stressed that the company is surviving on reserves, which is unsustainable in the long run.
Earlier this year, telecom operators, including MTN, called for a tariff hike, the first in 11 years, citing rising operational costs such as diesel prices needed to power base transceiver stations.
Without the increase, Toriola warned, "if the tariff doesn’t go up, we will shut down."
MTN Nigeria reported a significant N519.1 billion loss in the first half of 2024, mainly due to foreign exchange losses and high inflation.
Additionally, the company may suspend Unstructured Supplementary Service Data (USSD) banking services over a N250 billion debt owed by Nigerian banks.
Toriola expressed hope that regulatory bodies, including the Central Bank of Nigeria and the Nigerian Communications Commission, would intervene to resolve the financial crisis, urging swift action to prevent detrimental consequences for the country’s economy.