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Home Business Telecoms

ALTON Warns States with Hostile Policies Risk Losing Out on $1bn Telecom Investment

by Joan Aimuengheuwa
August 18, 2025
in Telecoms
0
ALTON Warn States Against Hostile Policies as Industry Investment Surges
ALTON Chairman, Engr. Gbenga Adebayo

ALTON Chairman, Engr. Gbenga Adebayo

UBA
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The Association of Licensed Telecommunications Operators of Nigeria (ALTON) have issued a warning to state governments to create an enabling environment or risk being excluded from the country’s fast-moving digital growth and telecom investment surge.

ALTON says that multiple levies, bottlenecks in right-of-way approvals, and other unfriendly state policies are slowing expansion and could widen connectivity gaps between regions.

Speaking over the weekend, ALTON Chairman, Engineer Gbenga Adebayo, said the telecom industry is finally seeing strong investment flows after years of stagnation, but not every state may benefit.

“States that create hostile conditions for telecom operations risk being left behind. Where deployment is unwelcome, investments will move to more supportive neighbouring states, and citizens of unfriendly states will inevitably suffer limited connectivity,” Adebayo said.

He stressed that operators are already under enormous pressure, paying as many as 56 different taxes and charges. According to him, relief is expected from January 2026 when the Federal Government’s tax reform bills come into effect, cutting overlapping levies across federal, state, and local tiers. “We will not continue to solicit endlessly for cooperation,” Adebayo warned.

Fresh data from the Nigerian Communications Commission (NCC) shows over $1 billion in telecom infrastructure investments poured into the country this year alone. 

That confidence was restored after the regulator allowed mobile network operators to adjust tariffs by up to 50%, reversing almost a decade of frozen pricing.

This policy change has triggered aggressive expansion as operators are rolling out new base stations, extending fibre networks, upgrading existing sites, and introducing enhanced site security to counter vandalism. 

Adebayo described the current pace of deployment as the most ambitious since before the COVID-19 pandemic.

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The reforms go beyond tariffs and taxation. The inauguration of the new NCC Board, chaired by Idris Olorunimbe, has been described as a stabilising factor for the industry. 

The rebranding of 9Mobile to T2 is also seen by stakeholders as a signal of renewed investor interest and strategic repositioning.

Industry players argue that these developments place Nigeria in a better position to close broadband gaps and expand access to digital services. But without cooperation at state level, experts warn, the benefits will remain unevenly distributed.

Behind the numbers, operators continue to burn through more than 40 million litres of diesel monthly, most of it imported, to keep networks running. This reality adds to operational costs and stresses why hostile state policies only worsen the financial strain.

The NCC is already working with the Office of the National Security Adviser to create region-specific rapid response systems to protect telecom infrastructure, but Adebayo urged the public to take responsibility as well. Cases of vandalism and stolen equipment, he warned, further undermine investments and slow deployment.

For ordinary Nigerians, unfriendly state policies could mean slower broadband rollout, fewer digital jobs, and reduced access to critical online services. On the other hand, states that actively support operators stand to benefit from expanded infrastructure, stronger investor confidence, and broader digital inclusion.

“The transformation we are witnessing in our sector has not been experienced in recent years… but for this to be sustainable, all stakeholders, especially state governments, must play their part. Telecoms is not just about calls and data, it is a driver of national economic stability and growth,” Adebayo concluded.

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Tags: ALTONALTON warnsbroadband expansion NigeriaGbenga Adebayohostile state policies NigeriaNCCNigeria telecom investmentNigerian Communications CommissionRight of Way Feesright-of-way bottleneckstelecom infrastructuretelecom operators NigeriaTelecom policiestelecom tax reform
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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