MTN Nigeria’s Chief Executive Officer, Karl Toriola, has issued a stark warning that the country’s telecom sector is in a critical state and requires immediate intervention to prevent its collapse.
Speaking at a forum titled ‘TELECOMS INDUSTRY 2.0: The Next Investment Frontier In Nigeria’ held in Lagos on Tuesday, Toriola emphasized the urgent need for action.
“The telecom sector is facing significant challenges and is at risk of drying up if urgent steps are not taken. Investors will not be inclined to invest in the sector unless these fundamental issues are addressed. The telecom sector is in an ICU stage,” he stated.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), also highlighted the sector’s difficulties, pointing out that the industry has become a victim of its own success.
He noted that the government increasingly views the telecom sector as a revenue source, which is jeopardizing its sustainability.
“Many people are complaining about the quality of service today,” Adebayo said. “But it’s important to understand that service quality is directly tied to government policies. There are 54 government agencies constantly imposing various levies on us. Unfortunately, telecom operators are now seen primarily as a significant source of government revenue. If this trend continues, the sector’s sustainability cannot be guaranteed. Moreover, the issue of over N200 billion owed to our members by banks for services rendered remains unresolved.”
