MTN will shut down without tariff hike — CEO MTN Nigeria, the country’s largest telecom operator, has emphasized the urgent want for the telecommunications sector to bounce to profitability to sustain its operations.
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.
The MTN chief, who has about 78 million subscribers under his watch, pinpointed that the sector has been accumulating significant losses and that immediate action is necessary to reverse this trend.
The operator with a corporate social investment of N2.6bn, according to its 2023 Sustainability Report, is now surviving on the profits it accumulated in about two decades.
“We must boomerang the industry to profitability,” he stated, emphasising the necessity for reform.
He further clarified that the company is currently operating on its reserves, which he described as unsustainable in the long run.
Earlier this year, telecom operators renewed summons for a tariff hike—the first increase in 11 years—to address compounding operational costs and reform service quality. Without such adjustments, they argued, financial viability and service standards will continue to decline.
Toriola reiterated that the sector faces critical lobbies from compounding operational costs, including ascending diesel prices called for to power coarse transceiver stations.
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Category: World-News
Tag: MTN will shut down without tariff hike CEO
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Published 10/22/2024