Stakeholders in the Nigeria telecommunications ecosystem on Tuesday warned that the industry is on the brink of collapse.
They spoke at a forum tagged: “TELECOMS INDUSTRY 2.0: The Next Investment Frontier In Nigeria,” held in Lagos.
In his remark at the event, the Chief Executive Officer of MTN Nigeria, Karl Toriola, warned that the country’s telecom sector was now in an intensive care unit (ICU) gasping for breath.
He stressed the need to rescue the sector from collapse.
Toriola said: “The telecom sector is facing a lot of challenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. The telecom sector is in the ICU stage.”
READ ALSO: Recession: Nigeria’s telecom sector loses N32bn in 2016 Q2
Echoing the position of Toriola, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, pointed out that the telecom industry has become a victim of its success with the government increasingly viewing it as a primary revenue source.
He further expressed concern about the sustainability of the sector given the ongoing financial pressures.
Adebayo revealed that banks owe telecom operators over ₦200 billion for services rendered while 54 agencies levy all forms of taxes on the sector.
“Today, many people are complaining about the quality of service. One thing we need to realise is that the quality of service is tied to government policies. There are 54 agencies of government that are always on our neck for one levy or the other.
“Unfortunately, telecom operators are now seen as a major source of government revenue. With this trend, the sustainability of the sector cannot be guaranteed.
“The issue of over ₦200 billion banks owing our members for services rendered has not been settled up till now,” he added.
By: Babajide Okeowo
The post Stakeholders warn Nigeria’s telecom sector on brink of collapse appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.