Chief executive officer of MTN Nigeria Karl Toriola has warned that the company will “shut down” if tariffs are not increased to ensure sustainability and profitability.
“There should be no delusion, if the tariff doesn’t go up, we will shut down,” Mr Toriola said on Monday during a tour of the company’s facilities by Fellows of the Media Innovation Programme in Ibeju-Lekki, Lagos.
“We must return the industry to profitability,” he stated, emphasising the necessity for reform.
Toriola said the company is currently operating on its reserves which he described as unsustainable in the long run.
Toriola reiterated that the sector faces critical pressures from rising operational costs, including escalating diesel prices required to power base transceiver stations.
According to him, MTN, which used to be Nigeria’s top corporate taxpayer, has seen its tax contributions decline because of these challenges.
The tariff hike, when granted, will be the first increase in 11 years.
In 2024, MTN Nigeria reported a N519.1bn loss in the first half of the year, primarily due to foreign exchange losses stemming from the naira’s devaluation and high inflation rates.
Also, the mobile network operator is seeking regulatory approval to halt support for USSD services used for banking transactions unless the debt is resolved and tariffs are adjusted to reflect the economic realities.
Toriola expressed optimism that the governor of the Central Bank of Nigeria Yemi Cardoso and the executive vice chairman of the Nigerian Communications Commission Aminu Maida would intervene to help resolve the ongoing financial crisis.
