Data is now the lifeblood of Nigeria’s telecom industry, with internet usage soaring from 125,149 terabytes in 2019 to 870,398 in 2024.
MTN CEO Karl Toriola sees immense growth potential but warns that rising costs and economic challenges may threaten the sector’s sustainability.
The CEO of MTN Nigeria, Karl Toriola, has highlighted the immense growth potential of Nigeria’s telecoms industry, driven by surging demand for data services.
Speaking to newsmen, he revealed that data has become the sector’s primary revenue source, with usage rising from 125,149.86 terabytes in December 2019 to 870,398.28 terabytes in October 2024, according to the Nigerian Communications Commission (NCC).
Between January and September 2024, MTN Nigeria and Airtel Nigeria reported a combined ₦1.63 trillion in data revenues, up from ₦254.32 billion in 2019.
Meanwhile, voice revenues grew by only 70.74% over the same period to ₦1.44 trillion.
MTN is investing heavily in fixed broadband solutions, such as fibre-to-home initiatives, to secure its long-term growth.
Rising Costs Threaten Sustainability
However, Toriola cautioned that rising operational costs, including diesel, fibre cables, and software licences, compounded by inflation and naira devaluation, threaten the sector’s sustainability.
He noted some companies are now spending more than they earn.
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To address these challenges, telcos are requesting a 100% tariff increase, though Toriola acknowledged the difficulty of full implementation given economic hardships.
“We are optimistic the right decisions will be made for the industry’s sustainability,” he said.
Toriola praised the government’s support through initiatives like the Critical National Infrastructure Bill, which aims to protect telecom infrastructure.
He also highlighted efforts to improve accountability and quality of service by 2025.
Echoing these sentiments, economist Bismarck Rewane emphasised the need for cost-reflective tariffs and investments in digital infrastructure to drive Nigeria’s economic growth.
The telecoms sector, he said, remains critical to the nation’s digital transformation.
