Telecommunication service providers in the country have warned that they might be left with no option than to begin shedding their services, if urgent steps were not taken to review tariffs in the sector.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria, ALTON, Gbenga Adebayo, sounded the warning in his presentation at an end of the year stakeholders’ forum in Abuja yesterday.
He noted that the Nigerian telecommunications industry was facing a critical challenge that required urgent attention and warned that any further delay to review the tariff plans could spell danger for the industry.
According to him, mobile telecom operators have been struggling to survive due to the incessant rising operational costs and stagnant tariffs.
He stressed the need for immediate reforms to ensure the survival and sustainability of the industry.
Adebayo, who stressed that tariff must be reviewed for service providers to remain afloat and alive in the business, said: “The soaring energy prices, persistent inflation, and fluctuating exchange rates are key factors exacerbating situation.
‘’As we reflect on the end of the year 2024, there is need to issue an urgent and critical call to action for the future of our industry.
“The survival of the sector demands immediate and bold reform for its sustainability. Tariffs must be reviewed to reflect the economic realities of delivering telecoms services at a minimum for industry sustainability.’’
He warned of dire consequences, if the necessary tariff adjustments were not made, including service shedding, economic fallout, and national economic disruption.
The ALTON Chairman further stated that service shedding would mean that operators might be unable to provide services in certain areas or at specific times, leaving millions of Nigeria disconnected.
He noted that key sectors such as security, commerce, healthcare, and education, which depend significantly on telecom infrastructure, would experience major disruptions.
“This will have significant economic fallouts, as businesses will suffer from a lack of connectivity, stalling growth and innovation,” he said.
Adebayo stressed that while the challenges facing the industry were longstanding, they had grown increasingly severe and more perilous over the past year.
He expressed confidence that stakeholders would unite to uphold the significance and values of telecommunications in society, emphasising the need for further efforts to ensure the industry’s future stability.
His presentation read further: “As we reflect on the ending of year 2024 there is a need to issue an urgent and critical call to action for the future of our telecommunications industry.
“This is not a time for further deliberation or delayed decisions. The survival of the telecom sector demands immediate and bold reform for its sustainability, our tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.
“I must say it again with even greater urgency that we are in the last days for the survival of this sector and if immediate and decisive action is not taken, the hope for a better 2025 will remain just that, a hope.
‘’The challenges we face are not new, but they have become more acute and more threatening with this passing year. Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst others have all placed an unsustainable burden on network operators.
‘’Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire. The resources needed to maintain, expand, and modernize our networks are simply no longer available. Without intervention, the future of this sector is at grave risk.
‘’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