The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, issued the warning in a statement, citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
Adebayo 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.
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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.