Karl Toriola, Chief Executive Officer of MTN Nigeria, has said the Nigerian telecom sector is in an Intensive Care Unit (ICU).
Addressing a hybrid telecom investment forum virtually on Tuesday in Lagos, Toriola warned that the industry could collapse if urgent steps are not taken.
While highlighting the challenges facing telecom operators, he emphasized that without addressing the fundamental issues, the sector could face a severe downturn.
He said: “The telecom sector is facing a lot of challenges of which if urgent action is not taken, it will dry up.
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“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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