By Felicia Udeji
MTN Nigeria, the nation’s largest telecom operator with over 78 million users, has issued a serious warning about its future. According to CEO Karl Toriola, if tariffs are not adjusted to match rising costs, MTN may be forced to shut down operations in Nigeria.
Speaking during a tour in Ibeju-Lekki, Lagos, Toriola highlighted that the telecom industry is facing massive financial losses, with MTN now operating on reserves that can’t sustain the company much longer. “We need to return to profitability,” he stressed, adding that without an increase in tariffs, the company’s ability to provide quality service will be in jeopardy.
Earlier this year, telecom operators—including MTN—pushed for their first tariff hike in 11 years to address skyrocketing operational costs like fuel prices, which are necessary to keep their network running. However, no changes have been made yet.
“There should be no delusion; if the tariff doesn’t go up, we will shut down,” Toriola warned, pointing to rising costs and the devaluation of the naira as key challenges. MTN’s recent financial report showed a shocking N519.1 billion loss in the first half of 2024, largely due to the foreign exchange crisis and high inflation.
Additionally, Toriola revealed that MTN may stop offering USSD banking services if Nigerian banks don’t resolve a N250 billion debt owed to the operator.
MTN users are urged to take note of these potential disruptions, as the telecom giant calls on regulators and the government to take swift action. Without a tariff adjustment, both service quality and availability could be severely impacted.