MTN Warns of Telecom Sector Collapse Amid Tariff Hike Controversy in Nigeria

The Nigerian telecom sector is facing a critical situation, with the Chief Executive Officer of MTN Nigeria, Karl Toriola, issuing a stark warning about its potential collapse.

Speaking virtually at a hybrid telecom investment forum organized by Financial Derivatives Company in Lagos, Toriola described the sector as being in an "Intensive Care Unit" and emphasized the urgent need for intervention to prevent a total breakdown.

"The Nigerian telecom sector is in an Intensive Care Unit," Toriola stated. "If urgent steps are not taken, it could collapse."

This alarming declaration comes amid ongoing debates over telecom tariff hikes.

Airtel Nigeria's CEO, Carl Cruz, echoed Toriola's concerns, pointing out that increasing operational costs necessitate a hike in tariffs.

"Telecom tariff hike is a necessity due to soaring operational costs," Cruz noted.

However, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, has refuted claims of any recent tariff increases.

"There have been no new tariff hikes for Mobile Network Operators or any increases in telecom services for consumers," Maida clarified. Despite this, Mobile Network Operators (MNOs) in Nigeria continue to advocate for tariff hikes to sustain their operations.

The tension between regulatory stances and industry demands highlights the need for a balanced approach to ensure the sector's stability and growth.

The situation has also led to various reactions from stakeholders and subscribers.

For instance, there was jubilation among subscribers when the NCC directed MTN, GLO, and other operators to reconnect barred SIMs, showing the public's sensitivity to service disruptions.