Telcos Threaten Service Cuts Over Rising Costs
Telecommunications operators in Nigeria have sounded the alarm over the risk of imminent service disruptions if tariffs are not adjusted to reflect escalating operational costs.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), issued the warning in a statement on Monday, describing the sector as “under siege.” He pointed to inflation, volatile exchange rates, and surging energy prices as key factors pushing operators to the brink.
“Despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks,” Adebayo said.
He cautioned that without immediate tariff adjustments, operators may be forced to engage in “service shedding,” where telecom services in specific areas or at certain times are deliberately limited due to operational constraints.
“If nothing is done, we might begin to see grim consequences unfolding in the new year. Operators may not be able to provide services in some areas and at some times of the day, leaving millions disconnected,” Adebayo warned.
He highlighted the potential ripple effects on key sectors such as security, commerce, healthcare, and education, all of which rely heavily on telecom infrastructure. Businesses, in particular, could face significant setbacks due to reduced connectivity, stalling growth and innovation.
Adebayo underscored that the financial burden on telecom operators has reached unsustainable levels, jeopardizing the industry’s ability to modernize and maintain critical infrastructure. Despite earlier appeals for tariff reviews—most notably in April 2024—no significant progress has been made.
In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) urged the Federal Government to initiate a constructive dialogue with industry stakeholders. They emphasized the need for a framework that balances consumer affordability with operators’ financial sustainability, following 11 years of stable tariffs.
“This is not a temporary issue,” Adebayo stressed, calling for swift action to avert widespread service disruptions and ensure the long-term viability of one of Nigeria’s most critical industries.
Telecom operators remain hopeful for a resolution but warned that failure to act promptly risks plunging the nation into economic and technological setbacks, with millions potentially disconnected from essential services.
