Telecommunications operators in Nigeria have issued a stern warning that they may shut down services in certain regions of the country next year if their request for a tariff review is not addressed by the Nigerian Communications Commission (NCC).
This announcement was made by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) in a statement signed by its Chairman, Engr. Gbenga Adebayo, on Monday.
Adebayo emphasized that the telecom sector’s survival hinges on immediate and significant reforms to ensure its sustainability. He stressed that tariffs must be adjusted to reflect the economic realities of providing telecom services at a minimum level necessary for industry sustainability;
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. There will be significant economic fallout, as 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.
The telecom industry is currently under significant strain. Adebayo highlighted that without a tariff review, operators cannot continue to guarantee service availability. He noted that while the challenges faced by telecom companies are not new, they have become more severe and threatening over the past year.
Rising operational costs, skyrocketing energy expenses, relentless inflation, and volatile exchange rates have all placed an unsustainable burden on network operators. Despite these mounting pressures, tariffs have remained stagnant, trapping operators in a financial quagmire. Adebayo pointed out that the resources needed to maintain, expand, and modernize telecom networks are no longer available, putting the future of the sector at grave risk.
To keep the sector afloat, stakeholders have worked tirelessly over the years to uphold the values and importance of telecommunications in society. However, Adebayo made it clear that more needs to be done to secure the sector’s future. “The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come.
Despite the dire warnings, we still believe that a better 2025 is possible—but only if we act now. Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.
Engr. Gbenga Adebayo
Background
Due to increasing costs, telecom operators in Nigeria have been advocating for a tariff increase since last year. In a joint statement by ALTON and the Association of Telecommunication Companies of Nigeria (ATCON), operators highlighted that the telecom industry is the only sector that has not reviewed its prices despite rising inflation and other economic factors that justify an increase.
- They attributed this to regulatory constraints that have prevented them from adjusting prices appropriately.
- The NCC regulates prices in the telecom industry, and operators are not allowed to implement any price changes without the regulator’s approval.
- The NCC has stated that a cost-based study is being conducted to determine whether it will approve price increments for the operators.
