The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has warned that its members may begin service shedding if urgent steps are not taken to review tariffs in the sector.
In a statement on Monday, Gbenga Adebayo, ALTON chairman, said the Nigerian telecommunications industry is facing a critical challenge that requires urgent attention.
He said operators are struggling to survive due to rising operational costs and stagnant tariffs, stressing the need for immediate reforms to ensure the survival and sustainability of the industry.
The ALTON chairman said soaring energy prices, persistent inflation, and fluctuating exchange rates are key factors exacerbating the situation.
“As we reflect on the end of year 2024, there is a need to issue an urgent and critical call to action for the future of our telecommunications industry,” Adebayo said.
“The survival of the sector demands immediate and bold reform for its sustainability.
“Tariffs must be reviewed to reflect the economic realities of delivering telecoms services at a minimum for industry sustainability.”
Adebayo warned of dire consequences if the necessary tariff adjustments are not made including service shedding, economic fallout, and national economic disruption.
Adebayo explained that service shedding would mean that operators may be unable to provide services in certain areas or at specific times, leaving millions of Nigerians disconnected.
The ALTON boss said key sectors such as security, commerce, healthcare, and education, which depend significantly on telecom infrastructure, would experience major disruptions.
“This will have significant economic fallouts, as businesses will suffer from a lack of connectivity, stalling growth and innovation,” he added.
Adebayo stressed that while the challenges facing the industry are longstanding, they have grown increasingly severe and more perilous over the past year.
He urged stakeholders to acknowledge the urgency of the situation and take decisive action to safeguard the sector, cautioning that inaction could endanger one of the key pillars of Nigeria’s development.
“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector,” Adebayo said.
“If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardise one of the most critical pillars of Nigeria’s development.
“If we succeed, 2025 can be the year we turn things around, a year of hope, resilience, and sustainability for the telecoms industry.”
He expressed confidence that stakeholders would unite to uphold the significance and values of telecommunications in society, emphasising the need for further efforts to ensure the industry’s future stability.
On April 25, telcos said their services were overdue for price increments as they have not raised rates in the last 11 years.
