Telecommunications operators in Nigeria have raised alarms about the imminent risk of service disruptions unless tariffs are revised to reflect escalating operational costs.
In a statement released on Monday, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as being “under siege,” highlighting the mounting financial pressures caused by inflation, volatile exchange rates, and rising energy prices.
Adebayo pointed out that despite these challenges, tariffs have remained unchanged, placing telecom operators in a difficult position where maintaining service quality and expanding network coverage has become increasingly unsustainable. He warned that without an immediate adjustment in tariffs, the industry could face service shedding, a situation where telecom services are intentionally limited or reduced in certain areas.
“If nothing is done, we might begin to see grim consequences in the new year, such as service shedding,” Adebayo stated. “Operators may not be able to provide services in some areas and at certain times, leaving millions of people disconnected. This would have a significant economic fallout, as businesses will suffer from a lack of connectivity, stalling growth and innovation.”
He further stressed that critical sectors like security, healthcare, education, and commerce, which depend heavily on telecom infrastructure, would face severe disruptions. The Chairman also pointed out that the rising operational costs have made it nearly impossible for operators to modernize and maintain essential infrastructure, endangering the sector’s long-term sustainability.
Despite these ongoing challenges, Adebayo expressed cautious optimism that a more sustainable future is possible, but only if action is taken swiftly. The first call for tariff adjustments was made in April 2024, but the issue remains unresolved, exacerbating the financial strain on telecom companies.
In response to the growing crisis, ALTON, along with the Association of Telecommunications Companies of Nigeria (ATCON), issued a joint statement urging the federal government to facilitate constructive dialogue with industry stakeholders. The associations emphasized the need for a balanced framework that ensures both consumer affordability and the financial sustainability of operators, especially after 11 years of tariff stability.
With the telecom sector playing a crucial role in Nigeria’s economy, operators are calling on all stakeholders to act before it’s too late, warning that failure to address the situation could jeopardize the survival of one of the country’s most vital industries.
