The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has issued a stark warning about an impending service crisis unless urgent tariff reforms are implemented. The organization, which represents major telecom players in Nigeria, stated that it would be forced to initiate service shedding across the country as early as 2025 if the government does not approve a much-needed tariff increase.
Gbenga Adebayo, the Chairman of ALTON, highlighted the escalating financial challenges that operators are facing in a statement released on Monday. According to Adebayo, Nigeria’s telecom industry is on the brink of collapse due to mounting operational costs, inflation, and the failure to adjust tariffs in line with the current economic realities.
“We are at a critical juncture in the telecommunications industry,” said Adebayo, “and without bold, decisive reforms, we will not be able to continue offering reliable services across Nigeria. Tariffs must be reviewed to reflect the actual cost of doing business in this sector. If we do not make this adjustment, we will not be able to guarantee uninterrupted service to millions of Nigerians.”
The ALTON Chairman underscored the gravity of the situation, warning that the country could face severe economic repercussions if the telecoms sector is allowed to falter. He pointed out that the current tariff structure no longer aligns with the rising costs of delivering services, especially in light of the surging energy prices, inflationary pressures, and unstable exchange rates that have hit operators hard over the past year.
“Service Shedding: The Price of Inaction”
Adebayo described the potential consequences of failing to revise the tariffs as dire. Service shedding, a scenario where telecom operators are forced to limit or cut off services in certain areas or at specific times, is one of the worst outcomes. According to Adebayo, this could lead to widespread connectivity issues, with businesses and individuals across Nigeria facing severe disruptions.
“If we do not act now,” Adebayo warned, “telecom operators may not be able to guarantee coverage in key areas, leaving millions of Nigerians without essential services. This could have a devastating impact on businesses, hindering growth and innovation, while also affecting sectors such as healthcare, security, and education.”
He also stressed that service interruptions would have a cascading effect on the national economy, as vital sectors that depend on telecom services would be forced to slow down or halt their operations entirely. This includes businesses that rely on connectivity for daily operations, as well as essential services like medical care and national security operations.
A Cry for Action: The Need for Stakeholder Collaboration
ALTON’s statement came at a time when the Nigerian telecom industry was already grappling with several deep-rooted challenges. Adebayo explained that while these issues—rising energy costs, inflation, and foreign exchange volatility—have been growing for some time, their effects have now become more pronounced and harder to ignore.
“We can no longer delay these discussions,” Adebayo emphasized. “The telecoms sector is crucial to Nigeria’s economic future, and if we allow this crisis to escalate, the country will suffer far-reaching consequences.”
He urged all stakeholders, including the Nigerian Communications Commission (NCC), telecom operators, and the federal government, to come together and find a sustainable solution to the industry’s financial woes. Adebayo emphasized the importance of creating a tariff system that reflects the current economic climate, ensuring that operators can continue to offer affordable, reliable services while also maintaining financial viability.
A Dark Future Without Reform
The ALTON Chairman stressed that the industry’s survival was at stake, with the potential for nationwide disruptions becoming increasingly likely. He painted a grim picture of what could happen if the tariff issue is not addressed in the coming months.
“The future of telecoms in Nigeria is uncertain if we do not act now,” he said. “If we fail to secure a tariff adjustment, we may see entire regions of the country without reliable telecommunications coverage. This is not just a matter of business survival, but of national survival, as the telecoms sector supports key services like education, security, and healthcare.”
Adebayo expressed confidence that stakeholders could work together to resolve the situation, but he warned that time was running out.
“This is the moment for all of us to come together and take the necessary steps to protect the future of telecoms in Nigeria,” he said. “If we succeed, we will set the stage for a year of hope and resilience for the sector. If we fail, however, we will risk undoing one of Nigeria’s most important drivers of development.”
The Path Forward: A Call for Bold Action
Adebayo concluded his statement with a call to action, urging the government and other relevant parties to urgently consider the issue of tariff reform. He stressed that this is a make-or-break moment for the telecoms industry, and without immediate intervention, Nigeria’s economic future could be in jeopardy.
“We must act now,” he said. “2025 can be the year we turn things around for Nigeria’s telecoms sector, but only if we come together and take action. Let this be the moment when we secure the sustainability of one of Nigeria’s most vital industries.”
As the clock ticks toward the new year, the telecoms industry watches closely, with operators and consumers alike waiting to see whether the government will heed ALTON’s warning and take the necessary steps to avert a national crisis. The telecom sector’s future, it seems, hangs in the balance.
In recent years, Nigeria’s telecom sector has experienced significant growth, contributing substantially to the national economy. However, it has also faced numerous challenges, including high operational costs, a volatile energy market, and regulatory constraints. In response, ALTON has repeatedly called for tariff adjustments, but the government has been slow to act. This ongoing tension between the need for price hikes and the reluctance of regulators to approve them has created a precarious situation for telecom operators, who are now warning of potentially severe consequences if reforms are not enacted soon.
