₦airaland Forum

Karl Toriola, chief executive officer (CEO) of MTN Nigeria, says the country’s telecommunications sector is “in a deep crisis”.

Toriola spoke on Tuesday at the telecom investment forum organised by Financial Derivatives Company (FDC) in Lagos.

The telco CEO pointed out the severe sustainability challenges currently faced by telecom operators across the country.

He said despite the growth over the past two decades of liberalisation, the sector is now threatened by rising costs and unsustainable pricing.

Toriola said a price increase has become imperative, stressing that it is now an “absolute necessity”.

He said there is an urgent need to rescue the sector from collapse as it is “in an intensive care unit”.

Speaking on the viability of continued investment in the telecoms sector, Toriola said a fundamental challenge is that the financial returns expected from the industry are now “so low that they threaten its very survival”.

“Nobody is going to put in $1 with the expected return of 60 cents on the dollar,” he said.

Toriola, stressing the need for the sector’s revival, said without apt changes, the flow of new investment into the sector could dry up entirely.

He said the static pricing is no longer tenable.

“There’s no way under the surface of the earth, in the kind of inflationary environment and forex devaluation that we’ve seen, that an industry can maintain prices the same for 11 years,” he said.

“The telecoms sector has faced escalating costs across the board — from the cost of capital to the soaring expenses of maintaining infrastructure like base stations and diesel generators.

“Without adjustments to pricing, the industry’s ability to function and attract investment is in jeopardy.”

Although he acknowledged recent progress in discussions with regulatory authorities, Toriola said the challenges faced remain critical.

He said stakeholders are beginning to understand the depth of the crisis and are considering necessary interventions, including price increases and concessions.

Toriola said “qualitative action needs to be swift and decisive to prevent the collapse of this industry” as time is of the essence.

VikingKing:
Take a moment to put aside the issue of "necessity" when it comes to these Tinubu's so-called economic policies. Put it aside for one moment. Imagine for a minute, how catastrophically heartless you have to be, to swing an entire country of over 250 million people, into abject poverty, and still be comfortable with it.

Take a moment to let that soak in. Then ask yourself: that thing that made you push these souls into unspeakable hardship, are you the one who will determine its success? How sure are you that at the end of 20-30 years of sacrifice from these innocent people, your plan will be a success?

How sure are you?


How sure are you that Cardoso and Edun are right?

How sure are you that along the line it will not be sabotaged in the midst of one political drama or the other? How sure are you that things will pan out EXACTLY how you planned it?

Because for all of this suffering to make any sense, your plan has to be 90% foolproof at the very least! Anything below that, and even in the grave, Bola Tinubu, you will be as restless as a sailor on a stormy night in May.

Zico5:
Nigerians never see anything in the hands of these greedy politicians. They will make sure they frustrate the masses until absolute revolution sweep them away. Tinubu will never learn. They still want to increase tariff despite what we just witnessed. That fire They are looking for will surely burn them.