MTN Nigeria Warns of Possible Shutdown Without Tariff Increases Amid Rising Operational Costs

MTN Nigeria has issued a warning about a potential shutdown if tariffs are not raised to address escalating operational costs that jeopardize the telecommunications sector’s profitability.

During a recent visit to the company’s facilities in Ibeju-Lekki, CEO Karl Toriola highlighted the significant financial losses facing the industry and stressed the need for urgent measures to reverse this trend.

With approximately 78 million subscribers, MTN is currently relying on reserves built over the last two decades, a situation Toriola described as unsustainable.

He pointed to soaring operating costs, particularly the rising diesel prices necessary to power base transceiver stations, as a major factor affecting financial performance.

“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he warned. Toriola also noted that MTN, once a leading corporate taxpayer in Nigeria, has seen its tax contributions decline due to the sector’s financial struggles.