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Stakeholders in Nigeria’s telecommunications ecosystem on Tuesday warned that the industry was on the brink of collapse.
They spoke at a forum titled: “TELECOMMUNICATION INDUSTRY 2.0: The Next Investment Frontier in Nigeria,” held in Lagos.
In his remarks at the event, MTN Nigeria Chief Executive Karl Toriola warned that the country’s telecommunications sector was now in a gasping intensive care unit (ICU).
He stressed the need to save the sector from collapse.
Toriola said: “The telecom sector is facing a lot of challenges that if not addressed urgently, the sector will collapse. The reality is that investors will not come to invest in the sector if the underlying issues are not addressed. The telecom sector is in the ICU stage.”
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Echoing Toriola, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the telecommunications industry had become a victim of its success as the government increasingly views it as a major source of revenue.
He further expressed his concerns 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 collect all forms of taxes on the sector.
“Today, many people complain about the quality of service. One thing we need to realize is that the quality of service is related to government policy. There are 54 government agencies that are always our scapegoats because of various levies.
“Unfortunately, telecommunications operators are now considered the main source of government revenue. With this trend, the sustainability of this sector cannot be guaranteed.
“The issue of bank debts worth over ₦200 billion to our members for services rendered has not been resolved to date,” he added.
By: Babajide Okeowo
The post Stakeholders warn Nigeria’s telecom sector on brink of collapse first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.
