Telecommunications operators in Nigeria have issued a stark warning of potential service disruptions in parts of the country next year if their request for a tariff review is not addressed by the Nigerian Communications Commission (NCC). The operators, under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have raised concerns about the sector’s sustainability in light of rising operational costs and stagnant tariffs.
In a statement issued on Monday, ALTON Chairman Engr. Gbenga Adebayo emphasized the urgent need for a tariff review to reflect the current economic realities of delivering telecom services. According to Adebayo, failure to act could lead to severe consequences for the industry, including service shedding, where operators may be unable to provide services in certain areas or at specific times, leaving millions of Nigerians disconnected.
“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding,” Adebayo warned. “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, as businesses will suffer from a lack of connectivity, stalling growth and innovation.”
The ALTON Chairman stressed that key sectors such as security, commerce, healthcare, and education, which heavily rely on telecom infrastructure, would be particularly vulnerable to disruptions. The call for immediate tariff adjustment comes as the telecom industry grapples with rising operational costs, soaring energy expenses, inflation, and volatile exchange rates, which have placed an unsustainable burden on network operators.
Adebayo pointed out that, despite these mounting challenges, tariffs have remained stagnant, further straining the financial stability of telecom companies. He added that the resources needed to maintain, expand, and modernize telecom networks have dwindled, and without urgent intervention, the future of the sector could be at serious risk.
While acknowledging the efforts of stakeholders to sustain the industry, Adebayo warned that keeping the sector afloat is no longer sufficient. “It is not enough to have kept the sector afloat; we must now focus on securing its future,” he stated. “The sustainability challenges we face today are not just a passing storm—they are a call for decisive action to ensure that this industry thrives for generations to come.”
This latest plea from telecom operators comes as they continue to advocate for tariff increases, a request they have been pushing since last year. Both ALTON and the Association of Telecommunication Companies of Nigeria (ATCON) have cited the telecom industry as the only sector yet to review its prices despite the rising inflation and other economic pressures. The operators attribute this issue to regulatory restraints, as the NCC controls price adjustments and must approve any price changes.
The NCC has responded by stating that a cost-based study is currently underway to determine whether it will approve the proposed tariff increases. However, the outcome of this review remains pending, leaving telecom operators in a state of uncertainty as they prepare for potential disruptions in service.
As the debate over tariff review continues, industry experts warn that the future of Nigeria’s telecom sector hangs in the balance, urging for prompt action to ensure the stability and growth of the industry.
