Joy Agwunobi
MTN Nigeria, the largest telecommunications provider in Africa, has promised a significant enhancement in service quality by the end of the second quarter and into the third quarter of 2025.
This assurance follows mounting regulatory pressure from the Nigerian Communications Commission (NCC), which has consistently emphasised the need for improved service delivery across the telecom industry. A major catalyst for this renewed commitment stems from the NCC’s conditional approval of a recent 50 per cent tariff increase, which was granted with the expectation that telecom operators would prioritise network upgrades and overall quality enhancement.
Speaking during a recent televised interview, Karl Toriola,the chief executive officer of MTN Nigeria, acknowledged the clear directive from regulatory authorities concerning the urgent need to address quality of service (QoS) concerns. He stated that the company is under “clear and significant pressure” not only from the NCC but also from security agencies, all demanding visible improvements in network performance.
“There was a clear understanding and expectation from our regulatory authorities that with the approval of the 50 per cent tariff increase, we needed to address quality. We are under significant pressure not just from our primary regulator, the NCC, but also from security agencies regarding persistent quality of service issues,” Toriola said.
He revealed that MTN Nigeria has already taken bold steps toward this goal, as reflected in its capital expenditure (capex) plans. According to the company’s Q1 2025 financial report, MTN invested over ₦202 billion in capital expenditure—representing a 159 per cent increase year-on-year.
“Even though we haven’t started seeing substantial revenue inflows from the tariff adjustments, we have made a strong commitment. We are looking at spending nearly double what we invested in 2023 and 2024 combined. we are targeting close to ₦900 billion in capital expenditure – subject to our financial performance, with a singular focus of addressing the quality of service concerns,” Toriola explained.
He emphasised that the company’s aggressive investment strategy is aimed at resolving the multifaceted issues affecting service quality. A key area of concern, he noted, is ensuring consistent power supply—particularly diesel—for MTN’s nationwide network of base stations, to prevent frequent site outages.
Reflecting on the challenges faced in the previous year, Toriola disclosed that the firm was operating at a financial deficit just to maintain its network. “Last year, we were burning about 130 per cent of the cash we were earning, meaning we had to borrow just to keep the network operational,” he said. “Now, with the gradual stabilisation of the Naira, we are in a better position to meet our obligations and invest aggressively.”
He added that these investments are targeted primarily at urban centers such as Lagos and Abuja, where rapid urbanisation has led to coverage gaps and increased demand for network capacity. “In cities like Lagos and Abuja, new buildings are springing up rapidly. That creates the need for additional sites and infrastructure to ensure resilience and adequate coverage,” he said.
According to Toriola, 2025 will be a year of massive capital expenditure for MTN Nigeria, focused squarely on restoring and enhancing service quality. “We have already begun the process. Placing orders for equipment involves multiple stages, formal orders, letters of credit, shipment, installation, and sometimes even site acquisition or fiber deployment. All of this takes time, but the work is ongoing,” he said.
Toriola added “By the end of Q2 and into early Q3, customers will begin to see tangible improvements in quality of service. That is the primary objective driving our increased investment, made possible through the recently approved tariff adjustment.”
Beyond urban areas, MTN is also prioritising the expansion of coverage in underserved and rural communities. Toriola noted that while Nigeria boasts a sophisticated financial services landscape, access to digital services remains uneven.
“In places like Lagos, Enugu, Port Harcourt, Kano, and Kaduna, digital financial services have flourished because of high smartphone penetration. But that’s not the reality in rural communities. There, many people still don’t own smartphones or have consistent access to digital platforms,” he said.
Responding to concerns about whether further tariff increases are on the horizon to fund deeper network investments, Toriola reiterated that while telecom operators had initially sought a 100 percent hike, it was appreciative of the 50 per cent granted. However, he stressed that future adjustments would depend on demonstrated improvements.
“We are grateful for the 50 per cent increase. We understand that this is a process. Authorities need to see visible improvements in quality of service before any further tariff discussions can take place,” he said. “The need for a sustainable telecoms industry, particularly in the face of inflation and rising operational costs, is evident. But such sustainability doesn’t come free—it requires commitment and accountability from operators.
Toriola also confirmed that the long-standing dispute over Unstructured Supplementary Service Data (USSD) charges between telecommunications operators and Nigerian banks has been fully resolved. According to him, the impasse was amicably settled through collaborative efforts involving all key stakeholders.
He extended gratitude to the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) for their instrumental roles in facilitating the resolution. “We sincerely appreciate both regulators for their intervention. The issue has been conclusively addressed—we have recognised the revenue in full, and payments have been received,” he added.
