By JKNewsMedia
MTN NIGERIA has announced that subscribers should prepare for an increase in service charges due to the company’s rising operational costs.
The Chief Executive Officer, Karl Toriola, made it clear that the company can no longer sustain its operations without raising tariffs.
According to Toriola, MTN has been incurring significant financial losses, and without an increase in charges, the company may be forced to shut down its services.
Speaking during a tour of MTN’s facilities in Ibeju-Lekki, Lagos, Toriola addressed Fellows of the Media Innovation Programme, emphasizing the urgent need for a tariff hike.
He stated, “We must return the industry to profitability. If the tariff doesn’t go up, we will shut down.”
He stressed that the decision was not one the company took lightly but was necessary to keep the business afloat.
The telecommunications giant has been grappling with increasing operational costs that have affected its tax contributions and overall profitability.
Toriola warned that MTN must act swiftly to prevent a total collapse of its services.
He also highlighted that investors are hesitant to put money into the sector given the poor returns on investment, with some expecting just 60 cents on the dollar.
This comes after a similar warning issued last August, where Toriola outlined the dire situation facing the telecommunications industry.
Despite its growth over the past two decades, MTN and other operators are struggling to manage the skyrocketing costs of running their networks in Nigeria.
Toriola’s latest remarks serve as a critical signal to the government and the public that without financial adjustments, the company may not be able to continue its operations.
