- She said the Nigerian telecom sector is in a critical condition and could buckle under massive pressure from fundamental problems
Telecommunication companies in Nigeria are not having the best of time as the sector is struggling to withstand the multiple challenges that beset it, MTN Nigeria has said.
Karl Toriola, Chief Executive Officer of MTN Nigeria, stated this while speaking at hybrid telecom investment forum virtually on Tuesday in Lagos.
She said the Nigerian telecom sector is in a critical condition and could buckle under massive pressure from fundamental problems.
Toriola warned that the industry could suffer crippling downturn and collapse if urgent steps are not taken to address fundamental issues.
He said: “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 the ICU stage.”
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), corroborated Toriola’s concerns.
According to Adebayo, the telecom industry had become a victim of its own success, with the government increasingly viewing it as a primary revenue source.
He said: “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. 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 owing our members for services rendered has not been settled up till now.”
Meanwhile, Carl Cruz, Airtel Nigeria CEO, had expressed optimism that investment will continue to flow into the sector, adding that pricing increase is now an absolute necessity.
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