MTN Nigeria’s CEO, Karl Toriola, has issued a stark warning about the dire state of the country’s telecommunications sector, likening it to being in an “intensive care unit” (ICU). He emphasized the urgent need for intervention to prevent the industry from collapsing.
Speaking virtually at a telecom investment forum in Lagos on Tuesday, Toriola highlighted the significant challenges facing telecom operators, warning that if the fundamental issues aren’t addressed promptly, the sector could experience a severe downturn.
“The telecom sector is facing a lot of challenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. The telecom sector is in ICU stage,” Toriola stated.
Echoing Toriola’s concerns, Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), noted that the industry has become a victim of its own success, with the government increasingly viewing it as a primary revenue source. He expressed concerns over the sustainability of the sector, citing ongoing financial pressures and unresolved debts.
Adebayo revealed that banks owe telecom operators over ₦200 billion for services rendered, a debt that remains unsettled. He also linked the quality of service issues to government policies, noting that telecom operators are burdened by levies from 54 different government agencies.
“Today, many people are complaining about the quality of service. One thing we need to realize is that quality of service is tied to government policies. Unfortunately, telecom operators are now seen as a major source of government revenue. With this trend, the sustainability of the sector cannot be guaranteed,” Adebayo warned.
