High cost of mobile phones hindering digital inclusion in Nigeria – Karl Toriola

The Chief Executive Officer of MTN Nigeria, Karl Toriola, has identified the high cost of mobile phones as an obstacle to achieving digital inclusion in Nigeria.

Toriola stated this in a recent interview on Arise TV. According to him, while the global demand has led to a reduction in smartphone costs, Nigeria alone might not generate enough demand to bring down prices as quickly.

He suggested local assembling could help reduce production costs and eliminate customs duties, making smartphones more affordable. Toriola also emphasized the need for 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 said.

Device financing

Speaking on financing as a solution, the MTN CEO stressed the importance of aggregate credit scoring history for citizens to finance their mobile devices.

• “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.

By working on these technologies, he said MTN aims to make smartphones accessible to a broader population, allowing people to pay for their devices responsibly over an extended period.

MTN-Glo interconnect debt issue

Speaking on the interconnect debt issue with Globacom, Toriola said the technology company is complying with regulatory advice to resolve the issue.

• “Suffice it to say that we have between the NCC and the CBN, the most developed regulatory bodies who arbitrate on such matters, and whatever we do in that dispute or that discourse will be in line with what the NCC dictates. The NCC is very competent in addressing such issues; they’ve come out with authorization for disconnection and that has been put on hold to allow addressing these issues. But what I can say is that 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,” he said.

Recall that the NCC had on January 8, 2024, published a pre-disconnection notice informing subscribers of the approval granted MTN Nigeria Communications Plc to commence the phased disconnection of Globacom Limited with effect from January 18, 2024, due to a long-standing interconnection debt dispute between the parties.

MTN is a Nigerian company

While probing further into industry dynamics and the origin of the company, he reiterated that the ICT company is solely Nigerian.

• “We are a Nigerian company, registered in Nigeria with Nigerian shareholders. If you look at our leadership cadre, you’ll see that the company is 90% led at the very top level by Nigerians, and I don’t think we have more than 10 expatriates in this company. We have a very seasoned board of Nigerian directors as well as some international directors. We’ve grown to this size because we’ve done the right things at the right time. You cannot force customers to make their choice with their wallets,” he said.