Chief Executive Officer (CEO) of MTN Nigeria, Karl Toriola, has sounded a warning bell, saying that the country’s telecommunications sector is ‘in a deep crisis’.
Toriola made this assertion on Tuesday at the telecom investment forum organised by Financial Derivatives Company (FDC) in Lagos.
The telco CEO highlighted the severe sustainability challenges faced by telecom operators across the country, despite the growth experienced over the past two decades of liberalization.
He noted that the sector is now threatened by rising costs and unsustainable pricing, making a price increase an ‘absolute necessity’.
“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,” Toriola said.
“Without adjustments to pricing, the industry’s ability to function and attract investment is in jeopardy.”
Toriola stressed that the static pricing of the past 11 years is no longer tenable, especially in an inflationary environment with forex devaluation.
“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 MTN Nigeria CEO also noted that the financial returns expected from the industry are now “so low that they threaten its very survival”.
He noted that without apt changes, the flow of new investment into the sector could dry up entirely.
Although he acknowledged recent progress in discussions with regulatory authorities, Toriola emphasised that the challenges faced remain critical.
He called for swift and decisive action to prevent the collapse of the industry, stating that “qualitative action needs to be swift and decisive to prevent the collapse of this industry” as time is of the essence.
Toriola’s warning came at a critical juncture for the telecoms sector, which has been grappling with rising costs and unsustainable pricing.
As the industry teeters on the brink of collapse, stakeholders are beginning to understand the depth of the crisis and are considering necessary interventions, including price increases and concessions.
Boluwatife Enome
Follow us on:
The federal government has reinstated Professor Joseph Ikechebelu as acting Vice-Chancellor of UNIZIK, nullifying Professor…
Court of Appeal has overturned the Federal High Court ruling barring INEC from releasing voter…
Kenya has cancelled airport and energy deals with Adani following US bribery and fraud charges…
Brazil’s former president Bolsonaro and 36 others have been indicted for allegedly attempting a coup…
Republican David McCormick won Pennsylvania Senate seat as Democratic Sen. Bob Casey concedes after recount…
Trudeau's government has announced plans for temporary tax relief, cheques for Canadians amid rising costs…
View Comments
IMPORTED VEHICLES ( AUCTIONING) IS CURRENTLY GOING NOW!!! .
ROOFING SHEETS DIFFERENT TYPES AVAILABLE.
IMPORTEDED VEHICLES & DIFFERENT TYPES OF GENERATORS, AUCTION PHONE'S. FOR SALE AT CHEAP AND AFFORDABLE AUCTION PRICE INTERESTED BUYER SHOULD KINDLY CONTACT US ON O8O__6739__9O9O
BAGS OF RICE AND VEGETABLE OIL FOR SALE IN A CHEAP AND AFFORDABLE PRICE, BUYER SHOULD CONTACT US ON O8O__6739__9O9O
ARE ALSO AVAILABLE FOR SALES.
SOME OF THE AVAILABLE VEHICLES AND THEIR AUCTION PRICES ARE:
Toyota 4Runner #950,000
Toyota Avalon #900,000
Toyota Avensis #950,000
Toyota Camry tiny light #450,000
Toyota Camry muscle #1.3m /spider #1.8m
Toyota Camry Big daddy #650,000
Toyota Corolla le #800,000. Corolla S, #1.2m
Toyota FJ Cruiser #1.1M
Toyota Hiace #4m
Toyota Highlander #2.5m
Toyota Hilux #2.2m
Toyota Matrix #600,000
Toyota Prado #2m
Toyota Rav4 #650,000
Toyota Sequoia #950,000
Toyota picnic #670,000
Toyota Sienna #600,000/#950,000/#1.4m
Toyota Tacoma #2.7m.
Toyota Tundra #2.5M.
Toyota Venza #2.4M
Toyota Yaris #900,000
Volkswagen Golf 2,3,4 #250,000/350,000/#450,000/
Volkswagen Passat/wagon #500,000.
Volkswagen Touareg #600,000
Acura MDX #1.3
Acura TL #1M
Acura ZDX #2M
Audi A4 #500,000
Audi A6 #650,000
BMW 3-Series #650,000
BMW 5-Series #980,000
Ford Escape #600,000
Ford Explorer #900,000
Honda Baby Boy #500,000
Honda Accord 03 EOD #860,000
Honda Civic #500,000
Honda Crosstour #1.2M
Honda CR-V #750,000
Hyundai Accent #950,000.
Infiniti FX35 #1M
Infiniti FX45 #1.2M
Land Rover Discovery #3M
Lexus ex 300 #800,000
Lexus Rx330,#1.5m
Lexus Rx350,#3.5m
Lexus Rx400, #4m
RANG ROVER SPORT =#5M.
Land Rover LR3 #2m950,000.
MERCEDES BENZ DIFFERENT MODEL.
NOTICE: THE PRICE OF THOSE VEHICLES DEPEND ON THEIR YEAR MODEL.