The Chief Executive Officer of MTN Nigeria, Karl Toriola has identified high cost of mobile phones as a key obstacle to digital inclusion in Nigeria.
This revelation came recently during the ‘Tech into the Future’ interview hosted by Tomiwa Aladekomo and Ngozi Madueke-Dozie on Arise TV. The conversation revolved around digital inclusion in Nigeria and the Telecom industry’s role in narrowing the digital gap.
Toriola affirmed that since the introduction of 5G technology in 2022, coverage in Nigeria has expanded fourfold.
He underscored the significance of 5G in driving digitization, noting the transition from traditional voice and circuit switch services to data services. However, he identified the high cost of handsets as a major barrier to this transition.
Commenting on smartphone affordability, Toriola acknowledged that while global demand has led to price reductions, Nigeria’s demand alone might not suffice to drive prices down rapidly.
He proposed local assembly as a means to lower production costs and eliminate customs duties, ultimately making smartphones more accessible.
In terms of financing solutions, Toriola stressed the importance of establishing comprehensive credit scoring systems for citizens to finance their mobile devices. He mentioned ongoing collaborations with various African companies to achieve this goal, highlighting the potential of MTN’s mobile money PSB – MoMo to predict behavioral patterns and creditworthiness.
According to him, MTN’s objective is to leverage these technologies to broaden smartphone access, enabling individuals to responsibly pay for their devices over an extended period.
Recognizing the challenges ahead, Toriola emphasized the necessity of collaboration with regulators; noting that MTN is actively engaged with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, and regulatory bodies to tackle the issue of device affordability and promote digital inclusion in Nigeria.
