Without tariff hike, Nigeria’s telecom sector in jeopardy – MTN CEO

Karl Toriola, the Chief Executive Officer of MTN Nigeria, says the country’s telecommunications sector will be in serious jeopardy without tariff hike, noting that the sector is currently “in intensive care unit.”

Toriola who spoke on Tuesday at the telecom investment forum organised by Financial Derivatives Company, FDC, in Lagos, noted that although the sector had grown over the past two decades, it is now threatened by rising costs and unsustainable pricing.

According to Toriola, “qualitative action needs to be swift and decisive to prevent the collapse of this industry” as time is of the essence.

He said, “There’s no way under the surface of the earth, in the kind of inflationary environment and forex devaluation that we’ve seen, that an industry can maintain prices the same for 11 years.

“The telecoms sector has faced escalating costs across the board — from the cost of capital to the soaring expenses of maintaining infrastructure like base stations and diesel generators.

“Without adjustments to pricing, the industry’s ability to function and attract investment is in jeopardy.”