The Chief Executive Officer of MTN Nigeria, Karl Toriola, has warned about the dire state of the telecommunications sector in the country, describing it as being in an “intensive care unit” (ICU).
He proposed the need for an urgent intervention to prevent the industry’s collapse.
While addressing the hybrid telecom investment forum virtually on Tuesday in Lagos, he stressed the critical need to prevent the sector from collapsing.
Toriola highlighted the significant challenges facing telecom operators, warning that without addressing the fundamental issues, the sector could face 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,” he said.
The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, echoed Toriola’s concerns during the same event.
He pointed out that the telecom industry has become a victim of its own success, with the government increasingly viewing it as a primary revenue source.
He further expressed concern about the sustainability of the sector, given the ongoing financial pressures. Adebayo revealed that banks owe telecom operators over ₦200 billion for services rendered, a debt that has yet to be resolved.
According to Adebayo, “Today, many people are complaining about the quality of service. One thing we need to realise is that, quality of service is tied to government policies. There are 54 agencies of government that are always on our neck for one levy or the other.
“Unfortunately, telecom operators are now seen as a major source of government revenue. With this trend, the sustainability of the sector cannot be guaranteed. The issue of over ₦200 billion banks are owing our members for services rendered has not been settled up till now.”