During a recent visit to MTN’s facilities in Ibeju-Lekki, Lagos, CEO Karl Toriola highlighted the critical financial challenges facing the telecom industry. He stated that the sector is grappling with considerable losses and emphasized the need for immediate action to address this situation.
Toriola noted that MTN, which boasts around 78 million subscribers, has been relying on reserves built up over the past twenty years. He labeled this reliance as unsustainable in the long term. The rising costs of operations, particularly the increasing prices of diesel used to power its base transceiver stations, have added significant pressure on the company’s financial health.
The CEO underscored the necessity of restoring profitability in the telecom sector. He issued a stark warning that if tariffs do not increase, MTN may be compelled to cease operations. “There should be no delusion; if the tariff doesn’t go up, we will shut down,” he declared, stressing the urgency of the situation.
For more updates, join our WhatsApp channel: WhatsApp Channel