{"id":342959,"date":"2024-10-23T07:28:44","date_gmt":"2024-10-23T06:28:44","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=342959"},"modified":"2024-10-23T07:28:44","modified_gmt":"2024-10-23T06:28:44","slug":"tariff-hike-why-mtn-nigeria-may-shut-down-ceo-toriola","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2024\/10\/23\/tariff-hike-why-mtn-nigeria-may-shut-down-ceo-toriola\/","title":{"rendered":"Tariff hike: Why MTN Nigeria may shut down \u2014 CEO, Toriola"},"content":{"rendered":"<ul>\n<li><strong>The importance of tariff revisions to reflect current economic reality<\/strong><\/li>\n<li><strong>Nigeria\u2019s top corporate taxpayers, has seen its tax contributions decline due to the financial challenges<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p>MTN Nigeria, the country&#8217;s largest telecom operator, has warned of a potential shutdown if prices are not increased to cover mounting operational costs.<\/p>\n<p>Karl Toriola, the company&#8217;s CEO, delivered the warning on Monday while leading a tour of MTN&#8217;s facilities in Ibeju-Lekki, Lagos, for Fellows of the Media Innovation Programme.<\/p>\n<p>Toriola, who controls over 78 million users, stated that the telecoms sector is experiencing considerable financial duress, particularly due to rising diesel prices required to power base transceiver stations.<\/p>\n<p>&#8220;There should be no delusion; if the tariff does not increase, we will shut down,&#8221; he warned, emphasising the importance of tariff revisions to reflect current economic reality.<\/p>\n<p>The CEO noted that <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/08\/03\/mtn-nigeria-license-yet-to-be-renewed-ncc\/\">MTN<\/a>, which has invested N2.6 billion in corporate social responsibility, according to its 2023 Sustainability Report, is currently operating on profits accumulated over two decades. However, he stressed that this is unsustainable. \u201cWe must return the industry to profitability,\u201d Toriola emphasized, adding that the company\u2019s reserves are depleting.<\/p>\n<p>Earlier this year, telecom operators called for the first tariff hike in 11 years, citing the need to manage rising costs and maintain service quality. Without such an increase, they warned, the financial viability of the sector, along with service standards, would continue to decline.<\/p>\n<p>Toriola also pointed out that MTN, once one of Nigeria\u2019s top corporate taxpayers, has seen its tax contributions decline due to the financial challenges. In the first half of 2024, MTN reported a staggering N519.1 billion loss, largely attributed to foreign exchange losses from the naira\u2019s devaluation and high inflation.<\/p>\n<p>In addition, Toriola revealed that MTN may suspend Unstructured Supplementary Service Data (USSD) banking services due to a N250 billion debt owed by Nigerian banks. \u201cWe are seeking regulatory approval to halt support for USSD services used for banking transactions unless the debt is resolved and tariffs are adjusted,\u201d he said.<\/p>\n<p>Despite the challenges, Toriola expressed optimism that the new Central Bank of Nigeria Governor, Yemi Cardoso, and the Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida, would step in to help resolve the financial crisis.<\/p>\n<p>He concluded by urging swift action from the government and regulators, stressing the critical role the telecom industry plays in supporting Nigeria\u2019s economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The importance of tariff revisions to reflect current economic reality Nigeria\u2019s top corporate taxpayers, has seen its tax contributions decline due to the financial challenges MTN Nigeria, the country&#8217;s largest telecom operator, has warned of a potential shutdown if prices are not increased to cover mounting operational costs. Karl Toriola, the company&#8217;s CEO, delivered the [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":342960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored 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