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Nigerian Telecom Operators Warn of Service Blackouts Over Rising Costs

Olusola Blessing by Olusola Blessing
December 30, 2024
in News, Telecom
0
Nigerian Telecom Operators Warn of Service Blackouts Over Rising Costs
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Telecommunications operators in Nigeria have warned of potential service disruptions unless tariffs are adjusted to reflect escalating operational costs.

Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), raised the alarm on Monday, describing the telecom sector as “under siege.” He attributed the crisis to soaring inflation, volatile exchange rates, and rising energy prices, which have significantly increased operational expenses.

Despite these challenges, telecom tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks. Adebayo cautioned that without immediate tariff adjustments, operators may resort to service shedding—limiting telecom services in specific areas or at certain times.

“This could lead to millions being disconnected, disrupting businesses, stalling innovation, and impacting critical sectors like security, healthcare, and education,” he warned.

Adebayo emphasised that the financial strain on operators has reached unsustainable levels, threatening the sector’s ability to modernise and maintain critical infrastructure. He stressed that the issues are not temporary and require urgent intervention to ensure the sector’s long-term viability.

ALTON, along with the Association of Telecommunications Companies of Nigeria, urged the Federal Government to initiate dialogue with industry stakeholders to develop a framework balancing consumer affordability with operators’ financial sustainability.

The associations noted that tariffs have remained stable for 11 years despite growing operational challenges. They warned that without action, the survival of one of Nigeria’s most critical industries could be at risk.

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