Nigerian Telcos Threaten Service Suspension Over Tariffs

Telecommunications service providers and companies in Nigeria have been threatened to shut down their services in some areas by 2025 if the Nigerian Communications Commission (NCC) does not consider their request for a pricing revision.

The operators announced this in a statement signed by Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), on Monday.

According to Adebayo, the telecom sector’s survival necessitates fast and dramatic reform, and tariffs must be evaluated to reflect the economic reality of providing communication services, at the very least for industry viability.

“If nothing is done, we may begin to see catastrophic effects in the new year, such as Service Shedding; operators may be unable to provide services in some areas and at certain times of the day, leaving millions disconnected; there will be significant economic fallout, as businesses will suffer from a lack of connectivity, stifling growth and innovation.

“There will also be National Economic Disruption where Key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions,” Adebayo told the crowd.

The telecom business is heavily burdened.

The ALTON Chairman emphasized that without a pricing review, operators cannot guarantee service availability.

Adebayo stated that rising operational costs, skyrocketing energy costs, the relentless pressure of inflation, and volatile exchange rates, among other things, have all placed an unsustainable burden on network operators, adding that despite these mounting pressures, tariffs have remained stagnant, trapping operators in a financial quagmire.

Also according to Adebayo, the resources required to maintain, extend, and modernize telecom networks are no longer accessible, and he warns that without action, “the future of this sector is at grave risk.”

Adebayo stated that stakeholders have done their best throughout the years to support the industry by promoting the values and significance of telecommunications in society.

Keeping the sector afloat

The ALTON Chairman stated that stakeholders have worked hard over the years to sustain the sector by promoting the values and importance of telecommunications in society.

“However, let me be clear: our task is far from done. We must now focus on securing the sector’s future, not just keeping it afloat. The sustainability problems we confront today are more than just a passing storm; they are a wake-up call to take urgent action to ensure that this sector thrives for future generations. 

“Despite the severe warnings, we remain optimistic that a better 2025 is possible—but only if we act now. Let this be the time when we all join together, recognize the gravity of the problem, and pledge to save this sector,” he urged.

Some back stories to this from 2024 is that Telecom carriers in Nigeria have been clamouring for pricing increases since last year, citing rising costs.

In a joint statement issued by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), the operators stated that the telecom industry is the only one that has not reviewed its prices despite rising inflation in the country and other economic realities that require an increase.

• They attributed this to regulatory restrictions that have prevented them from pricing adequately.
• The Nigerian Communications Commission (NCC) oversees telecom tariffs, and operators are not permitted to make price changes without the regulator’s approval.
• The regulator has stated that a cost-benefit analysis is being done to decide whether it will sanction pricing increases for the operators.