Telecommunications operators in Nigeria have issued a stark warning that service disruptions are inevitable unless tariffs are adjusted to reflect rising operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo,made this statement on Monday, highlighting the dire situation facing the telecom sector.
He described the industry as being “under siege,” citing a combination of inflation, unstable exchange rates, and soaring energy prices as the main contributors to the escalating costs.
Despite these growing challenges, Adebayo pointed out that tariffs have remained unchanged, leaving telecom operators struggling to provide quality service and expand their networks.
He warned that without immediate tariff adjustments, operators may be forced to reduce services, leading to “service shedding” in certain areas.
“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding. Operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected,” Adebayo cautioned.
“There will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation. 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 added.
Service shedding, Adebayo explained, refers to the intentional reduction or limitation of telecom services in specific locations or at particular times due to the operational difficulties faced by telecom companies.
He further emphasized that the financial burden on operators has reached an unsustainable level, putting the sector’s ability to modernize and maintain vital infrastructure in jeopardy.
Despite the tumultuous year, Adebayo remained hopeful for a sustainable future, provided prompt action is taken.
He reiterated that the current challenges are not short-term and urged for immediate intervention to safeguard the long-term viability of the sector.
The first call for tariff adjustments was made in April 2024, but little progress has been made so far.
In light of the growing financial pressures, ALTON and the Association of Telecommunications Companies of Nigeria issued a joint statement urging the Federal Government to facilitate a constructive dialogue with stakeholders in the industry.
Both associations underscored the need for a balanced framework that addresses both consumer affordability and the financial sustainability of operators, following 11 years of tariff stability.
With a united commitment to the sector’s future, the associations are urging all parties to take action before it’s too late, warning that failure to do so could endanger the survival of one of Nigeria’s most critical industries.
