Millions of Nigerians have a hidden stake in MTN Nigeria, according to the company’s Chief Executive Officer, Karl Toriola, who says the telecom giant should no longer be viewed as a foreign company despite its South African roots.
The debate resurfaced after Toriola explained that more than 11 million Nigerians indirectly own shares in the company through pension fund investments.
He also stressed that the business is incorporated in Nigeria, listed on the Nigerian Exchange, and managed mainly by Nigerians.
Speaking during an interview on Arise News, the MTN boss said the company’s identity is deeply connected to Nigeria’s economy. Moreover, he explained that Nigerian investors, pension funds, and retail shareholders have played a major role in the company’s growth over the years.
According to Toriola, MTN Group may have started in South Africa, but its ownership today is spread across several continents.
“We are labelled as a South African company because MTN Group was founded in South Africa. But the reality is that MTN Group has a very diverse global shareholding. Only about 50 percent of the shareholding is African, while the rest is held by investors from North America, Europe, the United Kingdom, the Middle East and Asia-Pacific,” he said.
He further explained that MTN Nigeria has become a key part of Nigeria’s economy through taxes, employment, and local investment.
“MTN Nigeria is a Nigerian company through and through. We are domiciled in Nigeria. We are listed on the Nigerian Exchange. We pay all the taxes, duties and levies expected of us, and we are run by Nigerians.
“I am Nigerian. Apart from one executive, every member of our executive committee is Nigerian, while our entire expatriate workforce in Nigeria is just four people.
“We have over 201,000 retail investors, while about 11 million Nigerians own MTN shares indirectly through pension funds. We are very proud of our Nigerian identity,” he stated.
Meanwhile, Toriola also defended the recent telecom tariff adjustment approved by the Federal Government. According to him, the increase became necessary because operators were struggling financially.
He explained that the tariff review was introduced to keep telecom companies operating and to improve network services across the country.
“People perceived the tariff increase as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t even pay our month-to-month bills with the revenues we were generating. The tariff adjustment was an absolute necessity. It enabled us to stay alive,” he said.
Furthermore, he disclosed that MTN has significantly increased investments in network infrastructure since the adjustment took effect.
According to him, the company spent about N390 billion on capital projects during the first quarter of the year. In comparison, profit after tax stood at N359 billion during the same period.
“In the first quarter of this year alone, we spent N390 billion on capital expenditure, compared with a profit after tax of N359 billion. That shows our commitment to improving quality of service,” he said.
However, Toriola admitted that subscribers still experience network challenges in many parts of the country. He explained that several issues continue to affect service quality despite ongoing investments.
He identified vandalism, insecurity, poor electricity supply, and rising customer demand as some of the biggest obstacles facing telecom operators.
According to him, deliberate attacks on telecom facilities have caused serious disruptions to network services.
“There are people who deliberately pour petrol into our manholes and set them on fire. A single incident can knock out services for millions of subscribers. We also face security challenges that prevent our engineers from quickly accessing some sites.
“In addition, we operate about 18,000 sites nationwide, each requiring generators, batteries, rectifiers and constant fuelling because of inadequate public electricity supply. All these affect quality of service,” he explained.
Nevertheless, he assured customers that MTN remains committed to improving service delivery through continuous investment.
“We are not perfect, but we are investing aggressively and continuously striving to do better,” he added.
In addition, Toriola addressed claims that telecom companies deliberately consume customers’ mobile data. He dismissed the allegation and pointed to smartphone applications as the real cause.
According to him, background apps often use data without users noticing.
“There is a perception that MTN goes and takes customers’ data, but our studies have shown repeatedly that background applications are consuming much of that data.
“I encourage customers to check their device settings. Daily automatic backups are unnecessary for many users. If possible, carry out backups over Wi-Fi instead of mobile data,” he advised.
Meanwhile, the company continues to remain one of Nigeria’s largest taxpayers, employers, and investors in digital infrastructure.
