There are 54 agencies of government that are always on our neck for one levy or the other.”
By Ife Osemedua
365Daily – Executives of telecommunication companies in Nigeria have raised the alarm over excessive revenue demands by the government, saying unless something is done soon to address this challenge, the sector will collapse.
They disclosed this during a hybrid telecom investment forum which held virtually on Tuesday, August 13, 2024, in Lagos State.
Addressing the meeting, the Chief Executive Officer of MTN Nigeria, Karl Toriola, said the Nigerian telecom sector is in an Intensive Care Unit (ICU).
He added that the challenges faced by the telecom operators, if not adequately addressed, could result in a severe downturn.
“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,” he warned.
On his part, thw Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, supported to concerns raised by the MTN boss.
He argued that the telecom industry has been unduly focused on as a primary revenue source by the government due to its success.
He said: “Today, many people are complaining about the quality of service. One thing we need to realise is that 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.”
In his own address, the Chief Executive Officer of Airtel Nigeria, Carl Cruz, noted that despite its challenges, the sector will continue to perform well with additional investments.
However, he added, price increase is inevitable under the present circumstances.