The telecommunications operators in Nigeria are warning of imminent service disruptions unless tariffs are adjusted to reflect escalating operational costs.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), issued a stark warning in a statement, describing the sector as “under siege” due to soaring operational costs.
Adebayo cited inflation, volatile exchange rates, and rising energy prices as the primary drivers of these costs, which have left operators struggling to maintain quality service and expand their networks.
Despite these challenges, tariffs have remained unchanged, worsening the financial burden on operators.
“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding,” Adebayo warned.
He elaborated on the potential consequences of service shedding, stating, “Operators may not be able to provide services in some areas and at some times of the day, leaving millions disconnected. There will be significant economic fallout, as businesses will suffer from a lack of connectivity, stalling growth and innovation.”
Adebayo further emphasized that the financial burden on operators has reached unsustainable levels, endangering the sector’s ability to modernize and maintain critical infrastructure.
“There will also be national economic disruption, where key sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure, will face serious disruptions,” he noted.
Service shedding, a deliberate reduction or limitation of telecom services in specific areas or at certain times, is a dire consequence of telecom companies’ operational challenges. Adebayo stressed that the current challenges are not temporary and called for immediate intervention to secure the sector’s long-term viability.
The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved. In response to the growing financial strain, ALTON and the Association of Telecommunications Companies of Nigeria issued a joint statement urging the Federal Government to facilitate a constructive dialogue with industry stakeholders.
Following 11 years of tariff stability, the associations emphasized the need for a framework that balances consumer affordability with operators’ financial sustainability.
