Network providers complain about a challenging business environment.
Nigerian network providers expressed their concerns about the challenging business environment in the telecommunications sector. At the launch of the Nigeria Digital Economy Report by GSMA in Abuja, Karl Tariola, CEO of MTN, highlighted various issues affecting the sector, including insecurity, high operational costs, and taxation. He emphasized that these challenges were diminishing returns on investments and making the sector less attractive to investors.
Tariola pointed out that despite significant investments in infrastructure, the telecommunications industry was experiencing poor returns, especially compared to other sectors. He noted that continuous reinvestment, often up to 20 percent of capital expenditure, was required to maintain and expand networks, including adopting new technologies like 5G.
He emphasized the need for tariff adjustments to ensure the sector’s sustainability and competitiveness. Adebayo Gbenga, Chairman of the Association of Licensed Telecom Operators of Nigeria, echoed the importance of ongoing investments for the digital sector’s sustainability. Both leaders stressed the urgency of reshaping the industry to regain its attractiveness to investors amidst the challenging macroeconomic conditions.
Share News with us via WhatsApp:08163658925 or Email: naijaeyes1@gmail.com
Join Our Social Media Channels:
WhatsApp: NaijaEyes
Facebook: NaijaEyes
Twitter: NaijaEyes
Instagram: NaijaEyes
TikTok: NaijaEyes
