Telecommunications operators in Nigeria have issued a warning to disrupt services unless tariffs are adjusted to account for escalating operational costs.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, issued the warning in a statement on Monday.
Adebayo labelled the telecom sector as “under siege,” citing high operational costs caused by inflation, unpredictable exchange rates, and rising energy prices.
He stated that, despite these issues, tariffs have remained fixed, leaving operators scrambling to provide excellent service while expanding their networks.
The telecom head cautioned that without an immediate rate adjustment, operators may resort to service shedding, resulting in limited availability of communication services in some locations.
“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 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 enumerated.
The term “service shedding” in telecommunications refers to the deliberate reduction or limitation of telecom services in specific areas or at specific times due to operational challenges faced by telecom companies.
The financial burden on operators has reached unsustainable levels, endangering the sector’s ability to modernise and maintain critical infrastructure.
Despite the challenges of a turbulent year, Adebayo expressed hope for a more sustainable future.
The first call for tariff adjustments was issued in April 2024, but no major progress has been made.
In response to the mounting financial pressures, ALTON and the Association of Telecommunications Companies of Nigeria issued a joint statement requesting the Federal Government to promote a productive engagement with industry stakeholders.
The groups highlighted the need for a system that balances consumer affordability with operators’ financial sustainability, following 11 years of tariff stability.
With a common commitment to the sector’s future, operators are urging all stakeholders to act before it is too late, warning that failure to do so will jeopardise the sustainability of one of Nigeria’s most important businesses.
