Telecoms subscribers, under the Association of Telephone Cable TV And Internet Subscribers of Nigeria (ATCIS), have warned the largest mobile network operator in Nigeria, MTN, to desist from increasing its tariffs or else it will lose about 80 million customers who have subscribe to its services in the country.
Speaking on MTN’s threat to shut down operation in Nigeria, the National President of ATCIS, Hon. Sina Bilesanmi, said the service shut down would not affect its subscribers, urging the telco to desist from threatening its customers.
According to him, “when ATCIS saw it on Tuesday, I shared it on the ICAF platform, ATCIS wrote MTN CEO to go ahead with the 80 million+ subscribers, but have promised them with their association body, with the power of the ATCIS Masses being the National President of telecom subscribers in Nigeria, if MTN try it, that may be the end of MTN.”
Last week, MTN had threatened that it would shut down its operation in Nigeria if the Nigeria Communications Commission (NCC) refuses to approve its request to increase its tariffs.
The MNO stated that its productivity would continue to be affected if not allowed to increase its tariffs. Speaking recently, the Chief Executive Officer of MTN, Karl Toriola, said there was need for the telco to increase its tariffs for the sustainability of its operation in consonance with the economic situation of the country.
He noted that the sector had been accumulating significant losses and that immediate action was necessary to reverse the trend. The operator with a corporate social investment of N2.6 billion, according to its 2023 Sustainability Report, is now surviving on the profits it accumulated in about two decades.
“We must return the industry to profitability,” he stated, emphasising the necessity for reform. He further elaborated that the company is currently operating on its reserves, which he described as unsustainable in the long run.
Earlier this year, telecoms operators renewed calls for a tariff hike—the first increase in 11 years—to address rising operational costs and improve service quality. Without such adjustments, they argued, financial viability and service standards will continue to decline.
Toriola reiterated that the sector faces critical pressures from rising operational costs, including escalating diesel prices required to power base transceiver stations. “There should be no delusion; if the tariff doesn’t go up, we will shut down,” he threatened.
Toriola noted that MTN, one of Nigeria’s top corporate taxpayers, has seen its tax contributions decline as a result of these financial challenges. In 2024, MTN Nigeria reported a staggering N519.1 billion loss in the first half of the year, primarily due to foreign exchange losses stemming from the naira’s devaluation and high inflation rates.
Speaking further, Toriola also warned that it may sus – pend Unstructured Supplementary Service Data banking services due to the N250 billion debt owed by Nigerian banks.
The mobile network operator is seeking regulatory approval to halt support for USSD services used for banking transactions unless the debt is resolved and tariffs are adjusted to reflect the economic realities.
However, Toriola expressed optimism that the new Governor of the Central Bank of Nigeria, Yemi Cardoso, and the Executive Vice Chairman of the Nigerian Communications Commission, Dr. Aminu Maida, would intervene to help resolve the ongoing financial crisis.