MTN Nigeria’s CEO, Karl Toriola, has issued a stark warning that the proposed reintroduction of a 5% excise tax on telecom services could be the final blow to the sector.
He cautioned that the legislation, currently under consideration by the National Assembly, could push telecom operators, including MTN, into financial collapse.
Speaking during a visit from the MTN Media Innovation Programme Fellows at his Ikoyi office, Toriola stated, “There is no way you’ll treat a sector that is adding over 15 percent to the GDP the way the telecom sector is being treated in Nigeria.”
Toriola highlighted the industry’s precarious state, noting that telcos are operating from reserves that may soon run out, especially in light of the naira’s devaluation.
He emphasized, “If the tariff doesn’t go up, we will shut down.”
The proposed tax was previously excluded from telecom services by former President Muhammadu Buhari, who argued that it would worsen economic hardship. However, lawmakers are now seeking to reform tax laws and consolidate tax frameworks, despite concerns from industry leaders like Toriola.
Additionally, Toriola debunked rumors that Nigerian banks have been settling their USSD debt, revealing that the figure has climbed above N250 billion.
He stressed that the Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) are still working on a solution, with potential service withdrawals on the table if the issue is unresolved.