After 13 years of operation in Nigeria, the management of Telecommunications Company, MTN, has lamented how the epileptic power supply in Nigeria has been affecting its business negatively. Worse still, the company claimed that there are other factors like illegal multiple taxation among others as the challenges it is facing.
MTN, after sacking about 252 staff in Nigeria on Monday said the action was inevitable considering the dwindling revenue and increasing operating expenses it has been struggling with for some years now.
The company hinted that in 2013 alone, the N34 billion spent on diesel formed 12 per cent of its total operating expenditure cost, which could have been used to construct 5,200 new base stations. “Over 200 per cent reduction in headline price points to massive free-fall in tariffs within three years through aggressive price war.
“The aggregate spend per subscriber has reduced in the same proposition with the expected net effect from new additions not being sufficient to drive profitable growth,” MTN said.
It added that “The network expenses of operators are increasing due to the overall high inflationary environment along with their network expansion activities, illegal and multiple taxation, high cost of providing power and rising inflation, among others.”
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