MTN Nigeria, one of the country’s leading telecommunications providers, has issued a dire warning about the industry’s financial health. CEO Karl Toriola highlighted the critical challenges facing the sector, including soaring operational costs, a decade-long tariff freeze, and unpaid debts from Nigerian banks.
Toriola emphasized that MTN, despite its substantial reserves, is operating on a thin margin due to the unsustainable financial pressures. The company’s operations have been significantly impacted by factors such as high diesel prices, inflation, naira devaluation, and foreign exchange losses.
One of the most pressing issues facing the sector is the outstanding debt of ₦250 billion owed to MTN by Nigerian banks for USSD banking services. Toriola warned that if this debt remains unpaid, MTN may be forced to discontinue USSD services, which are widely used for banking transactions across the country.
The CEO urged regulatory bodies like the Central Bank of Nigeria and the Nigerian Communications Commission to intervene promptly to address these pressing issues. He stressed the importance of the telecommunications industry in driving Nigeria’s economic growth and warned that a collapse of the sector could have severe consequences.
MTN’s plea for urgent reforms highlights the critical need for sustainable policies and solutions to ensure the long-term viability of the telecommunications industry in Nigeria.