Nigerian telecom operators have issued a stern warning about the industry’s precarious future, urging the federal government to act decisively before the sector collapses.
The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, made the alarming declaration during a stakeholders’ end-of-year event. He painted a grim picture of what lies ahead if urgent reforms are not implemented, stressing that the survival of the telecommunications sector is on the line.
“Let me be clear,” Adebayo said. “The challenges we face are not temporary storms—they are systemic issues that demand bold reforms. If we do not act now, we risk losing one of the most critical pillars of Nigeria’s development.”
Key Sectors at Risk
Adebayo emphasized that the potential collapse of the telecom industry would have far-reaching consequences, disrupting vital sectors such as security, commerce, healthcare, and education. He warned that telecom operators may soon struggle to maintain service availability, particularly in remote areas and during peak hours.
The chairman highlighted the reliance of modern society on telecom infrastructure, describing it as the backbone of Nigeria’s digital economy. “Our tariffs must be reviewed to reflect the economic realities of delivering telecom services. Without this, operators cannot continue to guarantee reliable service,” he said.
Tariffs and Economic Challenges
The call for tariff adjustments comes against a backdrop of rising operational costs, a weak naira, and dwindling revenue. Adebayo argued that current pricing structures no longer align with the costs of maintaining and expanding telecom infrastructure.
Experts have previously warned about the unsustainable pricing model in the telecom sector. A report by the Nigerian Communications Commission (NCC) in late 2024 revealed that telecom operators faced increased energy costs due to persistent fuel price hikes and power supply challenges.
Despite these challenges, the industry has continued to provide essential services to millions of Nigerians, often at a loss. “We have kept the sector afloat,” Adebayo noted, “but the burden is no longer sustainable without intervention.”
Calls for Government Action
ALTON is calling on the federal government to collaborate with stakeholders in the telecom sector to devise and implement long-term solutions. According to Adebayo, these solutions must address regulatory bottlenecks, improve access to foreign exchange for operators, and ensure a more favorable policy environment.
“The time for action is now,” Adebayo said. “Delays will only exacerbate the situation, and history will judge us harshly if we fail to act.”
Potential Impact of Inaction
Should the government fail to respond to the telecom operators’ pleas, the repercussions could be severe. Industry analysts predict that network outages and service disruptions could become commonplace, hindering Nigeria’s progress in digital innovation.
“A nation cannot thrive in the 21st century without a robust telecom sector,” said telecommunications expert, Dr. Ifeoma Nwankwo. “The industry is critical to everything from e-commerce to e-governance. Allowing it to fail would set Nigeria back decades.”
Adebayo echoed similar sentiments, warning of a ripple effect across the economy. “If this sector collapses, it will not be an isolated event. Businesses, schools, hospitals, and security agencies all rely on our infrastructure,” he said.
Hope for 2025
Despite the dire warnings, Adebayo expressed cautious optimism about the future. “We still believe a better 2025 is possible—but only if we act now,” he said.
He called on all stakeholders to come together and address the industry’s challenges head-on. “This is a clarion call for decisive action. Let us not wait until it is too late,” he concluded.
A Broader Context
Nigeria’s telecom industry has long been lauded as a success story, with over 220 million active mobile subscribers and internet penetration exceeding 50%. However, the sector’s growth has been accompanied by increasing pressures, including regulatory hurdles, taxation, and infrastructure deficits.
In 2023, telecom operators faced backlash over network downtimes and data price increases, leading to widespread dissatisfaction among consumers. These challenges were compounded by macroeconomic factors, including inflation and the removal of fuel subsidies, which drove up operational costs.
While the government has previously intervened to stabilize the industry—most notably through tax rebates and policy reforms—these measures have proven insufficient in addressing the sector’s deeper structural issues.
