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
IGBERETV 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 IgbereTV 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 More: MTN Nigeria CEO laments Nigeria’s exchange rate volatility, as firm faces Starlink