Chief Executive Officer of MTN Nigeria, Karl Toriola, has defended the tariff increase approved in January 2025, describing it as an “absolute necessity” that ensured the company’s survival and restored financial stability.
Speaking during an interview on ARISE NEWS, Toriola said the decision was not driven by profit ambition but by the urgent need to sustain operations.
“It was an absolute necessity. People sometimes perceived it as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t actually pay our month-to-month bills with the revenue we were generating,” he said.
According to him, the tariff adjustment helped stabilize MTN’s finances and enabled a significant increase in capital investment aimed at improving network infrastructure and service quality.
“It enabled us to stay alive, brought us back to profitability, and allowed us to increase our capital expenditure,” he added.
Toriola revealed that MTN significantly ramped up investment in 2025, increasing its capital expenditure budget from ₦250 billion in 2024 to about ₦1 trillion in 2025.
He stated that the company spent about ₦390 billion in the first quarter alone, exceeding its profit after tax for the same period.
“That shows the scale of our commitment to improving quality of service,” he said.
Addressing concerns over poor network quality, Toriola attributed challenges to rising data demand, fibre cuts from road construction, vandalism, and unreliable power supply.
“We operate in a very complex environment. Road construction often damages our fibre infrastructure, there is malicious vandalism, security challenges, and significant power supply issues,” he explained.
While acknowledging customer frustrations, he said MTN remains committed to continuous improvement through sustained investment.
“We are not here beating our chest and saying we’re perfect. We are flawed, but we’re continuously striving and investing to do better,” he said.
On future pricing, he emphasized the need for gradual, cost-reflective adjustments rather than sudden tariff shocks, noting that competition would continue to moderate pricing in the sector.
He also addressed concerns over data depletion, explaining that many cases are linked to background app activity such as cloud backups and automatic updates.
“In many cases, apps such as iCloud, WhatsApp and other services are performing large automatic backups over mobile data,” he said, advising users to manage their settings.
Looking ahead, Toriola said MTN would focus on improving quality of service, expanding fibre-to-the-home infrastructure, and strengthening customer trust through sustained investment.
Goodness Anunobi
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