Nigeria: Telecom Operators Warn of Service Shedding Amid Tariff Challenges – ALTON

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has issued a stark warning, announcing that its members may begin service shedding unless immediate action is taken to address stagnant tariffs and rising operational costs in the sector.

In a statement released in Lagos, ALTON Chairman, Mr. Gbenga Adebayo, highlighted the precarious state of Nigeria’s telecommunications industry, describing it as a critical challenge requiring urgent reform.

Call for Tariff Review

Mr. Adebayo emphasized the urgent need to adjust tariffs to align with the economic realities of delivering telecom services.

“As we reflect on the end of 2024, it is imperative to issue an urgent call to action for the future of our telecommunications industry. The survival of the sector demands immediate and bold reforms to ensure sustainability. Tariffs must be reviewed to reflect the economic realities of delivering telecom services,” he said.

The ALTON chairman warned that without this adjustment, telecom operators might struggle to guarantee consistent service availability, leading to severe repercussions for the industry and the economy.

Potential Consequences of Inaction

Adebayo outlined the grim implications of inaction, including:

• Service Shedding: Operators may be forced to reduce or halt services in certain areas or at specific times, leaving millions of Nigerians disconnected.
• Economic Fallout: Businesses dependent on connectivity would face disruptions, stalling growth and innovation.
• National Economic Disruption: Key sectors such as security, healthcare, commerce, and education, which heavily rely on telecom infrastructure, could experience significant setbacks.

“This scenario will have profound economic repercussions, affecting not just businesses but the broader socio-economic fabric of the nation,” he said.

Mounting Industry Challenges

Adebayo attributed the dire situation to several compounding factors:

• Rising Operational Costs: The costs of running telecom operations have continued to escalate.
• Skyrocketing Energy Costs: Energy price hikes have strained operational budgets.
• Inflation and Exchange Rate Volatility: Persistent inflation and fluctuating exchange rates have further destabilized the industry.

“These challenges, while not new, have intensified over time, posing a growing threat to the sustainability of the sector,” Adebayo noted.

Urgent Appeal to Stakeholders

Adebayo urged stakeholders to acknowledge the gravity of the situation and take decisive action to safeguard the future of the telecom industry. He reiterated ALTON’s commitment to collaborating with all stakeholders to ensure the survival and prosperity of the sector.

“Let this be the moment we come together, acknowledge the urgency of the situation, and commit to saving this sector. If we fail to act, history will record that we had countless warnings, yet allowed inaction to jeopardize one of the most critical pillars of Nigeria’s development,” Adebayo said.

A Vision for 2025

Despite the challenges, Adebayo expressed optimism that with collective effort, the industry could overcome its difficulties and achieve a brighter future.

“If we succeed, 2025 can be a year of transformation—a year of hope, resilience, and sustainability for the telecoms industry,” he concluded.

The call to action from ALTON serves as a critical reminder of the need for immediate and coordinated efforts to address the challenges facing Nigeria’s telecommunications industry, which remains a cornerstone of national development.