- The Chief Executive Officer of MTN Nigeria, Karl Toriola, warned that the company might shut down operations if the telecom tariff prices do not increase
- He stated the need for the sector to change tariffs that would reflect the current economic realities
- Toriola also warned that the Unstructured Supplementary Service Data (USSD) banking services may be suspended due to debts owed by Nigerian banks
The Chief Executive Officer of MTN Nigeria, Karl Toriola, has warned of the company’s impending shutdown if telecommunication tariff is not increased.
Toriola made this statement on Monday, October 21, during a visit to MTN’s facilities by Fellows of the Media Innovation Programme in Ibeju-Lekki, Lagos State.
He stated that prompt measures are needed to remedy the substantial loss that the sector has been facing, adding that the company is now operating on its reserves, which he characterised as not sustainable over time.
It can be seen from the 2023 Sustainability Report that MTN still relies on profits accrued over the last two decades, with a corporate social investment of N2.6 billion.
Highlighting the urgent need for reform, he said, “We must return the industry to profitability,
He expressed that the tariff should denote the current high economic situation: "s, “There should be no delusion; if the tariff doesn’t go up, we will shut down.”
In 2024, MTN Nigeria reported an alarming loss of N519.1 billion in the first half of the year, resulting from the naira’s devaluation and high inflation rates.
Toriola remarked that MTN, once one of Nigeria’s top corporate taxpayers, has declined to pay due to these financial situations.
The MTN boss also warned that it might suspend Unstructured Supplementary Service Data banking services due to the N250 billion debt owed by Nigerian banks.
However, he hoped 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 address the ongoing financial crisis.
Conclusively, he reiterated how indispensable the telecommunication sector is in the country and urged the government to take action as soon as possible.
MTN introduces recyclable SIM cards to promote sustainability in Nigeria
Meanwhile, TheRadar earlier reported that Technology company MTN Nigeria, on October 18, announced the introduction of paper-based, biodegradable, eco-friendly SIM cards in line with its Project Zero goals to reduce greenhouse gas (GHG) emissions and achieve net zero emissions by 2040.
MTN said this move aligns with its promise to ‘Doing for the Planet’, prioritising eco-responsibility and minimising the company’s environmental footprint through responsible and sustainable waste management practices.