Telecommunications operators in Nigeria, through their association chairman, Gbenga Adebayo, have warned of imminent service disruptions unless tariffs are adjusted to address rising operational costs.
This was disclosed in a statement by Adebayo on Monday.
He described Nigeria’s telecom sector as “under siege,” citing inflation, volatile exchange rates, and rising energy costs as drivers of soaring operational expenses.
He noted that tariffs have remained unchanged despite these pressures, making it difficult for operators to sustain quality service and network expansion.
Adebayo warned that without an immediate tariff adjustment, telecom operators might resort to service shedding, potentially limiting the availability of telecom services in some areas.
“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding.
“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, because businesses will suffer from a lack of connectivity, stalling growth and innovation.
“There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions,” he explained.
Service shedding in telecommunications involves the deliberate reduction or limitation of services in specific areas or times due to operational challenges.
He stressed that the financial burden on operators has become unsustainable, jeopardizing the sector’s capacity to modernize and maintain critical infrastructure.
Despite the challenges of a turbulent year, Adebayo expressed hope for a more sustainable future, provided action is taken promptly.
He stressed that the current challenges are not temporary and called for immediate intervention to secure the sector’s long-term viability.
Telecom operators first called for a tariff adjustment in April 2024, but little progress has been made, intensifying the challenges faced by the sector.
In light of the mounting financial strain, ALTON and the Association of Telecommunications Companies of Nigeria released a joint statement calling on the Federal Government to initiate constructive dialogue with industry stakeholders.
