MTN Nigeria’s CEO, Karl Toriola, has sounded the alarm on the telecommunications sector in Nigeria, describing it as being “in a deep crisis”. Speaking at the Financial Derivatives Company’s telecom investment forum in Lagos, Toriola highlighted the severe sustainability challenges facing telecom operators, including rising costs and unsustainable pricing.
Despite two decades of growth, the sector is now threatened by these challenges, making a price increase an “absolute necessity” to prevent collapse. Toriola emphasized that the sector is in intensive care and requires urgent intervention to ensure its survival.
He noted that the expected financial returns from the industry are now so low that they threaten its very survival, making it unattractive for investors. Toriola stressed that static pricing is no longer tenable, given the inflationary environment and forex devaluation.
The telecoms sector faces escalating costs, including capital, infrastructure maintenance, and diesel generators, which puts its ability to function and attract investment at risk. While acknowledging progress in discussions with regulatory authorities, Toriola emphasized that swift and decisive action is needed to prevent the industry’s collapse.
