Telecommunications operators in Nigeria have raised alarms over potential service disruptions if tariffs are not adjusted to reflect rising operational costs. The warning was issued by Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), in a statement released on Monday.....Click Here To Read Full Article >>
Adebayo painted a dire picture of the industry’s state, describing it as “under siege” due to spiraling costs driven by inflation, fluctuating exchange rates, and surging energy prices.
Despite these mounting challenges, he noted that telecom tariffs have remained stagnant, placing immense pressure on operators to sustain quality service and expand their networks.
Looming Service Shedding
The telecom chief cautioned that without an urgent review of tariffs, operators may have no choice but to implement “service shedding”—a practice where telecom services are deliberately reduced or limited in specific areas or during certain periods. Such measures could lead to widespread disconnection, impacting millions of Nigerians and causing significant economic consequences.
“If nothing is done, we might begin to see grim consequences in the new year,” Adebayo warned. “Operators may not be able to provide services in some areas and at certain times of the day, leaving millions disconnected. This will have significant economic fallout, as businesses reliant on connectivity will suffer, stalling growth and innovation.”
Broader Economic and National Security Impacts
He further stressed that disruptions in telecom services would have far-reaching implications for key sectors such as security, commerce, healthcare, and education, which heavily depend on telecom infrastructure. The consequences, he noted, could hinder national economic growth and disrupt essential services.
“The financial burden on operators has reached unsustainable levels, jeopardizing the sector’s ability to modernize and maintain critical infrastructure,” Adebayo explained.
Calls for Urgent Action
Adebayo revealed that the telecom industry’s appeal for tariff adjustments dates back to April 2024, but little progress has been made. ALTON, alongside the Association of Telecommunications Companies of Nigeria (ATCON), has since issued a joint statement urging the Federal Government to convene a dialogue with industry stakeholders.
The associations called for a balanced framework that ensures consumer affordability while maintaining the financial sustainability of telecom operators, highlighting that tariffs have remained stable for over 11 years.
Hope for a Sustainable Future
Despite the challenges, Adebayo expressed optimism for a more sustainable future if swift action is taken. He emphasized that the issues facing the sector are not temporary and require immediate intervention to secure its long-term viability.
With telecommunications being a critical industry for Nigeria’s economic and social development, operators are urging all stakeholders to act promptly to avert an impending crisis. They warned that failure to address these concerns could threaten the survival of the sector, leaving the country disconnected and vulnerable.
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