Connect with us


MTN Nigeria CEO laments Nigeria’s exchange rate volatility, as firm faces Starlink threat



MTN Nigeria appoints Toriola as CEO designate

As Elon Musk’s Starlink commences operation in Nigeria, the Chief Executive Officer of MTN Nigeria, Karl Toriola, said his firm is operating in a challenging business environment.

Ripples Nigeria had reported that Starlink had began operation in the country and also slashed the price of its hardware and subscription fee.

Addressing the business environment in Nigeria, especially in 2022, Toriola said the company faced foreign exchange volatility and availability – a situation that had spilled into 2023 according to Ripples Nigeria’s Naira Watch.

Toriola, who made this known in the firm’s Audited Full Year 2022 Financials obtained on Wednesday, also complained that the country’s historical inflation last year impacted consumer spending, as its subscribers struggled with a high cost of living.

“2022 was challenging due to global macroeconomic and geopolitical volatility, resulting in higher inflation, supply chain uncertainties, foreign exchange volatility and availability.

“In Nigeria, Inflation reached a 17-year high of 21.5% in November before moderating slightly to 21.3% in December, bringing the average for the year to 18.8% and putting pressure on consumer spending.

“To curb rising inflation, the Central Bank of Nigeria increased interest rates four times in 2022, bringing the Monetary Policy Rate to 16.5% – up by five pp during the year. This was further raised by 1pp in January 2023 to 17.5%.

“We continued to manage and invest in the resilience of our business and networks, expanding coverage and capacity with a focus on expense efficiencies and disciplined capital allocation,” MTN Nigeria CEO said.

These challenges listed by Toriola are what Musk’s Starlink will also face. However, due to the strong internet connection of the US firm, it poses a significant threat to the subscriber base of MTN Nigeria, Airtel, Glo and 9mobile.

Read also:MTN Nigeria, MRS Oil, and International Breweries are stocks to watch this week

Also, considering the frustration of many Nigerians who complain of not getting their money’s worth in data sold by the telecoms due to poor network service, convincing Nigerians to port to Starlink might not be difficult for Musk.

MTN Nigeria’s financials

In MTN Nigeria’s Audited results for the year ended December 31, 2022, the company reported that its total revenue was N2.01 trillion, which is 21.6 per cent above the N1.65 trillion generated a year before.

Ripples Nigeria gathered that the major revenue source; Voice (airtime), accounted for N1.03 trillion last year, against the N970.84 billion turned in during the corresponding period in 2021.

While earnings from Voice services grew by 6.8 per cent, turnover from Data usage by Nigerian subscribers rose by 46.9 per cent to N764.82 million in 2022, surpassing the N520.54 trillion worth of Data sold in 2021.

Also, net profit grew by 20.2 per cent year-on-year to N358.87 billion between January to December last year, rising above the N298.65 billion profit after tax of the previous year.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now