Telecom service providers in Nigeria have warned that unless urgent tariff reforms are made, the country could encounter disruptions in telecom services next year.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) noted that without a tariff review to align with high costs of operations, critical telecom services could be greatly affected. This could lead to limited or suspended services in certain regions across the country.
Engr. Gbenga Adebayo, chairman of ALTON, explained that the telecom sector’s survival is at risk due to high expenses, such as energy prices, inflation, and unstable exchange rates.
Even with these financial limitations, telecommunications service providers have been unable to adjust their tariffs, as the Nigerian Communications Commission (NCC) regulates price changes.
Adebayo warned that if these issues are not addressed soon, Nigeria could experience adverse consequences. He referred to the possibility of “service shedding,” where telecom operators may be forced to limit services in certain areas or at specific times, disconnecting millions of Nigerians.
This would lead to serious disruptions, especially in sectors like healthcare, education, and security, which heavily rely on telecommunications for their operations.
The ALTON Chairman stressed that while these challenges are not new, they have become severe over the past year. Operators are struggling to secure the financial resources needed to maintain and modernise telecom infrastructure, with unchanging tariffs compounding the problem.
Adebayo called on all stakeholders to immediately act to prevent the telecom sector from collapsing. He emphasised the urgency of the situation, noting that without reform, Nigeria’s telecommunications infrastructure could be at risk, which would have a negative impact on the economy and everyday life.
Nonetheless, Adebayo said that with the right reforms and collaborations, the telecom sector could recover in 2025. He urged the industry to work together to secure the sector and avoid the forthcoming disruptions.
