The Chief Executive Officer of MTN Nigeria, Karl Toriola, has identified the high cost of mobile phones as a significant obstacle to achieving digital inclusion in Nigeria.
Toriola expressed this concern in a recent interview on Arise TV. Despite the global trend leading to a reduction in smartphone costs, he noted that Nigeria might not be generating enough demand on its own to rapidly bring down prices. To address this, Toriola suggested that local assembling could help reduce production costs and eliminate customs duties, ultimately making smartphones more affordable. He also emphasized the importance of collaboration with regulators.
“MTN is actively working with the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, and regulatory authorities to address the issue of device affordability and promote digital inclusion in Nigeria,” he stated.
In addressing the affordability challenge, Toriola highlighted the importance of aggregate credit scoring history for citizens to finance their mobile devices. MTN aims to make smartphones accessible to a broader population by working on technologies that allow people to pay for their devices responsibly over an extended period.
“There are quite several companies in Africa that are working on that in partnership with us, and while it may take a bit of time for that momentum to be built, our mobile money PSB – MoMo will enable us to predict behavioral patterns and credit worthiness,” he added.
Regarding the interconnect debt issue with Globacom, Toriola assured that MTN is complying with regulatory advice to resolve the matter. The Nigerian Communications Commission (NCC) had issued a pre-disconnection notice due to a long-standing interconnection debt dispute between MTN Nigeria Communications Plc and Globacom Limited.
“MTN will always act in the most professional, most compliant manner, and we will not do anything that hasn’t been authorized by our licensing conditions or the regulator,” Toriola stated.
Addressing questions about the origin of the company, Toriola emphasized that MTN is a solely Nigerian company, registered in Nigeria with Nigerian shareholders. He highlighted the predominantly Nigerian leadership and board, stating that the company’s growth is a result of doing the right things at the right time.
