Industry Urges Tariff Adjustment to Avert National Connectivity Crisis
Telecommunications operators in Nigeria have sounded the alarm over impending service disruptions unless tariffs are adjusted to address escalating operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, issued the warning on Monday, describing the telecom sector as “under siege.” He cited inflation, volatile exchange rates, and surging energy prices as key factors driving up operational costs.
Adebayo explained that while tariffs have remained unchanged, the financial strain on operators has reached unsustainable levels, jeopardizing their ability to deliver quality services and expand infrastructure.
“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding,” Adebayo cautioned. “Operators may not be able to provide services in some areas and at some times of the day, leaving millions disconnected.”
National Impact
The telecom chief warned of severe economic and social repercussions if the situation persists. Key sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure, could face significant disruptions. Businesses dependent on connectivity might suffer, stalling growth and innovation.
Service shedding, which refers to the deliberate reduction or limitation of telecom services in specific areas or time periods, is seen as a last resort for operators grappling with mounting costs.
Call for Intervention
Adebayo reiterated that these challenges are not temporary and require immediate intervention. ALTON, along with the Association of Telecommunications Companies of Nigeria, has urged the Federal Government to facilitate a constructive dialogue with stakeholders.
The associations emphasized the need for a balanced framework that ensures consumer affordability while safeguarding the financial sustainability of telecom operators.
Despite calls for tariff adjustments dating back to April 2024, no significant progress has been made, leaving the sector at a critical juncture.
