Nigerian Telecom Tariff Review: Operators Threaten to Shutdown

Nigerian Telecom Tariff Review: Operators Threaten to Shutdown

Nigerian telecom tariff review has become a hot topic as telecom operators warn of service shutdowns next year. The operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have said they will stop services in certain areas if their demand for a tariff review is not met. Let’s dive into why this review is crucial for the survival of the telecom sector.

The Call for Tariff Review

In a statement signed by ALTON Chairman Engr. Gbenga Adebayo, telecom operators emphasized that the survival of the sector depends on urgent reforms. Adebayo explained that tariffs need to be adjusted to reflect the current economic conditions of delivering telecom services in Nigeria.

He warned, “If nothing is done, we might see grim consequences in the new year, including service shedding. Operators may not be able to provide services in some areas, leaving millions disconnected.”

This could lead to significant economic fallout, affecting businesses that rely on connectivity for growth and innovation. Key sectors like security, healthcare, commerce, and education, which depend on telecom services, would also face disruptions.

Rising Challenges for Telecom Operators

Adebayo pointed out that the telecom sector is under immense pressure. Rising operational costs, skyrocketing energy prices, inflation, and unstable exchange rates have placed a heavy burden on telecom operators. Despite these challenges, tariffs have remained unchanged, putting operators in a financial bind.

He added that the resources needed to maintain and expand telecom networks are running out. Without a tariff review, the future of the telecom sector in Nigeria is at risk.

Securing the Future of Telecom

Adebayo made it clear that while stakeholders have worked hard to keep the sector afloat, more needs to be done. “It’s not enough to have kept the sector afloat; we must focus on securing its future,” he said. He stressed that the challenges facing the sector are not temporary; they require urgent action to ensure long-term sustainability.

Despite the grim outlook, Adebayo believes there is hope for a better 2025, but only if immediate steps are taken to address the issues.

Backstory: Why the Tariff Review is Needed

The call for a tariff review is not new. Since last year, Nigerian telecom operators have been pushing for price increases due to the rising costs of operation. In a joint statement with the Association of Telecommunication Companies of Nigeria (ATCON), operators noted that the telecom industry is the only sector that has not adjusted its prices despite inflation and economic pressures.

However, the Nigerian Communications Commission (NCC), which regulates telecom prices, has prevented price hikes without a proper review. The NCC is conducting a cost-based study to determine whether a price increase is justified.

Key Points to Remember:

• Nigerian telecom operators are demanding a tariff review to avoid service disruptions.
• Rising operational costs and economic challenges have put the telecom sector under heavy pressure.
• The NCC is conducting a study to determine if price hikes are necessary for the telecom industry.
• The future of the telecom sector in Nigeria is at risk without an urgent tariff review.

By understanding the Nigerian telecom tariff review, consumers and stakeholders can better prepare for potential changes in the industry.

TechCity