The Association of Licensed Telecommunications Operators of Nigeria, ALTON, announced on Monday that its members would commence service shedding if tariff rates are not reviewed to address rising costs.
In a statement issued in Lagos, ALTON Chairman, Mr. Gbenga Adebayo highlighted the urgent challenges confronting Nigeria’s telecommunications industry, emphasizing the need for immediate intervention.
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Adebayo remarked: “As we reflect on the end of year 2024, there is a need to issue an urgent and critical call to action for the future of our telecommunications 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 said.
The ALTON Chairman cautioned that without a tariff review, operators might not be able to maintain service availability, potentially leading to dire consequences for the sector.
He outlined possible outcomes such as service shedding, economic instability, and disruption to the national economy.
Adebayo explained that service shedding could result in operators being unable to provide services in certain areas or during specific times, which would disconnect millions of Nigerians.
“This will have significant economic fallouts, as businesses will suffer from a lack of connectivity, stalling growth and innovation,” he said.
He further warned that national economic sectors such as security, commerce, healthcare, and education, which heavily rely on telecommunications infrastructure, could face severe disruptions.
Adebayo stressed that the issues plaguing the industry are not new but have become more severe due to rising operational costs, escalating energy expenses, inflation, and volatile exchange rates.
Expressing optimism, the ALTON Chairman urged stakeholders to prioritize the sector’s sustainability and collaborate to preserve its role in national development.
Adebayo called for decisive action, stating that failure to act could jeopardize the telecommunications sector, which is integral to Nigeria’s growth.
“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.
“If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardise one of the most critical pillars of Nigeria’s development.
“If we succeed, 2025 can be the year we turn things around, a year of hope, resilience, and sustainability for the telecoms industry,” Adebayo said.
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