Telecommunications operators in Nigeria have raised concerns about potential service disruptions if tariffs are not revised to align with the rising costs of operation. The warning was issued on Monday by Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), who described the current state of the telecom sector as being “under siege.”
Adebayo identified several critical factors contributing to the financial strain on telecom operators, including soaring inflation, fluctuating exchange rates, and increasing energy costs. These challenges have significantly driven up operational expenses, yet tariffs have remained unchanged, leaving operators struggling to maintain service quality and expand their networks.
He emphasized that without an immediate upward adjustment in tariffs, telecom companies may have no choice but to scale back their services. This could result in reduced telecom availability in certain regions or at specific times, a situation known as “service shedding.” Service shedding involves the deliberate reduction or restriction of telecom services due to the inability of operators to sustain operations under existing financial pressures.
Adebayo cautioned that the implications of inaction could be severe. In the coming year, operators may be forced to limit services, leaving millions of Nigerians without access to connectivity. The economic fallout from such disruptions would be significant, as businesses that rely heavily on communication systems could face interruptions, leading to stalled growth and innovation.
The potential impact on the nation would extend beyond businesses. Critical sectors such as security, commerce, healthcare, and education, all of which are deeply reliant on telecommunications infrastructure, would experience major disruptions, jeopardizing national stability and development.
Adebayo further explained that the financial challenges faced by telecom operators have reached unsustainable levels. The strain jeopardizes their ability to maintain existing infrastructure, modernize their systems, and ensure continuous service delivery. He warned that the current issues are not short-term challenges and require immediate intervention to prevent further deterioration of the sector.
Despite acknowledging the difficulties of the past year, Adebayo expressed cautious optimism about the possibility of a more sustainable future for the telecom industry if swift and decisive action is taken. He called on stakeholders to prioritize the adjustment of tariffs to reflect the reality of escalating operational costs, stressing that this would be the first step toward ensuring the long-term survival and growth of the sector.
