Telecommunications operators in Nigeria have warned of potential service disruptions unless tariffs are adjusted to address rising operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, in a statement on Monday, described the sector as being “under siege,” citing inflation, volatile exchange rates, and soaring energy costs as key challenges.
“If nothing is done, we might begin to see grim consequences in the new year, such as service shedding,” Adebayo stated.
“Operators may not be able to provide services in some areas or at certain times, leaving millions disconnected. This will have significant economic fallout, affecting businesses, stalling innovation, and disrupting critical sectors like security, commerce, healthcare, and education.”
Adebayo emphasized that the financial burden on operators has reached unsustainable levels, jeopardizing their ability to modernize and maintain essential infrastructure. He called for immediate tariff adjustments, warning that the challenges facing the sector are not temporary.
Service shedding, a deliberate reduction in telecom services in specific areas or at certain times, may become unavoidable if operational costs continue to rise without corresponding revenue increases.
In April 2024, telecom operators first called for a tariff adjustment, but no significant progress has been made. In response, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) issued a joint statement urging the Federal Government to engage in dialogue with industry stakeholders.
The associations stressed the need for a balanced framework that ensures consumer affordability while safeguarding operators’ financial sustainability. This appeal follows 11 years of stable tariffs in Nigeria.
“Operators are committed to preserving the sector’s future, but without immediate action, one of Nigeria’s most critical industries is at risk,” Adebayo warned.
The telecom industry is urging swift intervention to prevent widespread service disruptions and to secure the long-term viability of Nigeria’s communication infrastructure.