MTN Nigeria CEO Says Company Was “Effectively Bankrupt” Before Tariff Increase

The Chief Executive Officer of MTN Nigeria Karl Toriola, has revealed that the telecom operator was “effectively bankrupt” before recent tariff adjustments were approved, warning that the company was on the verge of shutting down operations due to rising costs.

Toriola made the statement while speaking on the impact of Nigeria’s operating environment on the telecommunications sector, explaining that the company was struggling to cover basic expenses such as diesel, network maintenance, and infrastructure costs before the tariff review.

He said the tariff increase was necessary to prevent a collapse of the industry, stressing that without it, MTN would not have been able to sustain its network operations or continue investing in service delivery. According to him, the company was already operating under severe financial pressure, with costs far exceeding revenue.

The MTN boss also pointed to broader challenges affecting telecom operators in Nigeria, including foreign exchange instability, high energy costs, and damage to network infrastructure, all of which have significantly increased the cost of running mobile services.

His comments come amid ongoing public debate over telecom pricing, with many subscribers expressing concern about rising data and call tariffs despite persistent complaints about service quality. However, industry operators maintain that price adjustments are necessary to keep networks functional and avoid further financial strain.

Toriola maintained that the sector requires continuous investment to remain stable, adding that without sustainable pricing, operators risk being unable to maintain infrastructure or expand services in a rapidly growing digital economy.