*Scores of telecoms consumers lambaste MTN Nigeria Communications Plc, and have expressed their readiness to switch to other telecoms providers, if MTN Nigeria Communications Plc makes good its recent threat to wind down operations in the West African country due to the current economic challenges

Gbenga Kayode | 绿帽献妻

There is apparantly confusion in the air, as scores of Nigerians have continued to react to the recent disclosure by the MTN Nigeria Communications Plc, that it will halt operations, if the Nigerian Communications Commission (NCC) as the telecoms sector rgulator would not yield to approve its proposed product and service tariff hikes, and for other Mobile Network Operators (MNOs) in the country.

绿帽献妻 reports several telecoms consumers have expressed their readiness to switch to other telecoms providers, if MTN Nigeria winds down operations in the West African country due to the current economic challenges.

Earlier, MTN Nigeria, had warned of a potential shutdown, if tariffs are not increased to offset rising operational costs in the Nigerian telecoms ecosystem.

The Telco also emphasised stressed the urgent need for the telecommunications sector of the economy to sustain operations and return to profitability.

Mr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria, noted this Monday, October 21, 2024, during a tour of the Telco’s facilities by Fellows of the Media Innovation Programme at Ibeju-Lekki, Lagos.

The MTN Nigeria CEO affirmed that the sector has been accumulating significant losses that require an immediate, necessary action to reverse this ugly trend.

It was also learnt that the leading telecoms operator is 鈥渘ow surviving on the profits it accumulated in about 20 years.

We must return the industry to profitability, says Toriola

Stressing the importance of tariff hikes in the telecoms industry as of now, Toriola noted that it is a necessity for reform in the country鈥檚 telecommunications sector.

He said: “We must return the industry to profitability,鈥� explaining that the foremost network provider is currently operating on its reserves, which Toriola reportedly described as “unsustainable” in the long run.

Why MNOs鈥� insistent calls for tariff increments

绿帽献妻 reports the Mobile Network Operators (MNOs) since early 2024, have advocated tariff increments for telecoms products and services in the Nigerian ecosystem.

According to the Telcos, the first increase in 11 years ought to be reviewed upwards in regard to operational costs and improve service quality.

The Association of Licensed Telecoms Companies of Nigeria (ALTON) and the Association of the Telecoms Companies of Nigeria (ATCON) at diverse fora, have both articulated their arguments for tariff hikes.

The network operators as well have argued that without such upward adjustments in prices of telecoms products and services, financial viability and service standards will continue to decline in the all-important sector of the Nigerian economy.

In justifying the urgent need for tariff increases, the CEO of MTN Nigeria restated the sector faces critical pressures from rising operational costs, including escalating diesel prices required to power base transceiver stations across the country.

Toriola stated: 鈥淭here should be no delusion; if the tariff doesn鈥檛 go up, we will shut down”, underscoring the urgent need for tariff adjustments to reflect economic realities in the West African country.

He further disclosed that MTN, once one of Nigeria鈥檚 top corporate taxpayers, has seen its tax contributions decline as a result of these financial challenges in the economy.

Besides MTN Nigeria, other MNOs have equally warned that without the projected tariff increases, the financial stability of the sector, and service standards would continue to deteriorate.

Shut down please, we have alternatives 鈹�Consumers

Reacting to the MTN Nigeria鈥檚 recent declaration to shut operations in the absence of tariff increase approval, have taken to their social media platforms, stating how they would migrate to other telecoms services if the Telco moves to actualise its threat winding down operations in the country.

Deji Ajayi Glorious, a Facebook user, said: 鈥淚s not our problem. We are going to look for another network.鈥�

Another user, @Emma Asukwu, wrote: 鈥淲e have alternatives ok so we don鈥檛 need to negotiate.鈥�

In his reaction to the development, certain @David Stephen stated: 鈥淧lease they should shut down. I have shut down my MTN Sim since over a year now I don鈥檛 recharge it, MTN please pack out.鈥�

Another Facebook user, @Samuel Ololade, wrote, 鈥淕lo to the rescue, double data all the way.鈥�

Likewise, on X, formerly known as Twitter, certain @ThatGiovanni94 tweeted, 鈥淔inally they are going鈥� it鈥檚 been a rough ride, byee!! Yellow.鈥�

Finally they are going.., its been a rough ride, byee!! Yellow.鈥� -Giovanni (@ThatGiovanni94) October 22, 2024.

NCC鈥檚 response to Telcos鈥� repeated requests for tariff increments?

In regard to Telcos鈥� repeated appeals to the Nigerian Communications Commission (NCC) for them to jack up prices of telecoms services in the ecosystem, stakeholders have suggested the telecoms regulatory Commission has remained 鈥渟ilent鈥� on the burning issue, thereby causing frustration and uncertainty among industry players.

As the situation escalated recently, with telecoms operators reportedly warned if the NCC as the industry regulator does not grant their request for tariff hikes, they may be forced to adopt load shedding鈥攁 strategy that would involve rationing network availability during certain periods.

If this happens, it is believed that such a move can lead to service disruptions in mobile and Internet services, affecting millions of Nigerian consumers who rely on these essential services for communication, business, and access to essential information in the country鈥檚 telecoms ecosystem.

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