Telecommunications operators in Nigeria have raised concerns over potential service disruptions due to surging operational costs, calling for an urgent adjustment in tariffs to address the challenges.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), sounded the alarm in a statement on Monday, describing the telecom sector as “under siege” from inflation, fluctuating exchange rates, and rising energy costs.
Despite these pressures, Adebayo noted that tariffs have remained unchanged, making it increasingly difficult for operators to sustain quality service and expand their networks. Without a tariff review, he warned, service shedding may become inevitable in the new year.
“Operators may not be able to provide services in some areas and at certain times, leaving millions disconnected. This will lead to significant economic fallout, affecting businesses, security, healthcare, and education, all of which depend heavily on telecom infrastructure,” Adebayo cautioned.
Service shedding, he explained, involves the intentional reduction of services in specific areas or during certain periods due to financial constraints.
Adebayo added that the financial strain on operators is now unsustainable, threatening the modernization and maintenance of critical telecom infrastructure. He called for urgent action to secure the sector’s long-term viability, emphasizing that the challenges are not temporary.
The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved since then.
In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) urged the Federal Government to engage in discussions with industry stakeholders. They stressed the need for a balanced framework that ensures consumer affordability while guaranteeing operators’ financial sustainability.
With 11 years of stable tariffs, operators believe swift intervention is critical to safeguarding the telecom sector, which remains vital to Nigeria’s economy and development.
