…Says tariff review saved telecom industry from collapse
…11 million Nigerians own MTN indirectly through pension funds
…Blames phone settings for most data depletion complaints
By Kingsley Samuel
Telecommunications giant, MTN Nigeria, says it has quadrupled its network investment to about N1 trillion in 2025 following the Federal Government’s approval of telecom tariff adjustments, insisting that the increase rescued operators from financial distress rather than boosting profits.
Chief Executive Officer of MTN Nigeria, Karl Toriola, disclosed this during an interview on Arise News, saying the industry had reached a point where operators could no longer meet their basic financial obligations before the tariff review.
According to him, the improved revenue has enabled MTN to embark on aggressive infrastructure expansion aimed at improving quality of service across the country.
He revealed that while the company budgeted about N250 billion for capital expenditure in 2024, it increased investment to about N1 trillion this year.
“In the first quarter of this year alone, we spent N390 billion on capital expenditure, compared with a profit after tax of N359 billion. That shows our commitment to improving quality of service,” Toriola said.
He maintained that the tariff adjustment was an industry survival measure.
“People perceived the tariff increase as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t even pay our month-to-month bills with the revenues we were generating. The tariff adjustment was an absolute necessity. It enabled us to stay alive,” he said.
Despite the increased investment, Toriola acknowledged that network quality remains below customer expectations, attributing the challenges to rising data demand, fibre cuts, vandalism, insecurity and unreliable electricity supply.
He said deliberate attacks on telecom infrastructure and limited access to some sites due to insecurity continue to disrupt services.
“There are people who deliberately pour petrol into our manholes and set them on fire. A single incident can knock out services for millions of subscribers,” he said.
Addressing public perceptions linking MTN Nigeria to South Africa amid periodic xenophobic sentiments, Toriola insisted the company is fundamentally Nigerian in ownership and operations.
He explained that although MTN Group originated in South Africa, MTN Nigeria is incorporated in Nigeria, listed on the Nigerian Exchange and managed almost entirely by Nigerians.
According to him, more than 201,000 Nigerians directly own MTN shares, while about 11 million others have indirect ownership through pension fund investments.
“MTN Nigeria is a Nigerian company through and through. We are domiciled in Nigeria. We are listed on the Nigerian Exchange. We pay all the taxes, duties and levies expected of us, and we are run by Nigerians.
“I am Nigerian. Apart from one executive, every member of our executive committee is Nigerian, while our entire expatriate workforce in Nigeria is just four people,” he said.
Toriola also dismissed allegations that telecom operators deliberately deplete customers’ data, saying investigations have consistently shown that automatic background processes on smartphones account for most unexpected data usage.
He identified cloud services such as Apple iCloud, WhatsApp backups and other automatic synchronisation features as major causes of rapid data consumption.
“There is a perception that MTN goes and takes customers’ data, but our studies have shown repeatedly that background applications are consuming much of that data.
“I encourage customers to check their device settings. Daily automatic backups are unnecessary for many users. If possible, carry out backups over Wi-Fi instead of mobile data,” he advised.
