Telecommunications operators in Nigeria, under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have threatened to suspend services in certain regions unless the Nigerian Communications Commission (NCC) approves their long-standing demand for tariff adjustments to align with escalating economic pressures.
Engr. Gbenga Adebayo, ALTON Chairman, who stated this in a statement emphasized that the telecom sector is teetering on the brink of a crisis, citing unsustainable operational costs, soaring energy prices, high inflation, and currency volatility as key challenges.
Despite these mounting pressures, Adebayo noted, telecom tariffs have remained stagnant due to regulatory restrictions.
“The survival of this industry demands immediate and bold reforms. Tariffs must reflect the economic realities of delivering telecom services to ensure the sector’s sustainability,” Adebayo stated.
If no action is taken, ALTON predicts severe consequences for Nigeria’s economy and society. The group highlighted the possibility of “service shedding”—limited service availability in specific areas or times—leaving millions of Nigerians disconnected.
This, they warn, could trigger significant economic and national disruptions, particularly in critical sectors such as security, commerce, healthcare, and education that rely heavily on telecom infrastructure.
Adebayo stressed that without tariff revisions, operators will struggle to maintain, expand, and modernize their networks. “The resources needed to sustain this sector are no longer available,” he warned, adding that the industry faces a grave risk without swift intervention.
Economic analysts have echoed ALTON’s concerns, warning that service disruptions could have far-reaching effects on Nigeria’s economy, which increasingly depends on digital connectivity.
“Telecommunications are the backbone of modern economies,” said Dr. Femi Olukoya, an economist specializing in digital infrastructure. “A breakdown in services could cripple businesses, impede innovation, and slow GDP growth.”
Dr. Olukoya also highlighted potential security risks. “Given that security operations often rely on real-time communication and data sharing, any telecom disruption could jeopardize national safety,” he said.
The NCC, which regulates telecom tariffs, has remained firm in its stance, requiring a cost-based study before considering any price adjustments.
While this regulatory approach aims to protect consumers from arbitrary pricing, operators argue that it has left them unable to respond to the rapidly changing economic landscape.