Telcos Threaten Service Cuts Over Rising Costs
Telecommunications operators in Nigeria have warned that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, issued the warning in a statement on Monday.
Adebayo described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.
The telecom chief warned that without an immediate tariff adjustment, operators may resort to service shedding, leading to limited availability of telecom services in certain 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 enumerated.
Service shedding in telecommunications refers to the deliberate reduction or limitation of telecom services in specific areas or at certain times due to operational challenges faced by telecom companies
He further emphasised that the financial burden on operators has reached unsustainable levels, endangering the sector’s ability to modernise 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.
The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved.
In response to the growing financial strain, ALTON and the Association of Telecommunications Companies of Nigeria issued a joint statement urging the Federal Government to facilitate a constructive dialogue with industry stakeholders.
The associations emphasised the need for a framework that balances consumer affordability with operators’ financial sustainability, following 11 years of tariff stability.
With a shared commitment to preserving the sector’s future, operators are calling on all stakeholders to act before it’s too late, warning that failure to do so will risk the survival of one of Nigeria’s most critical industries.
