By
Nigeria’s telecom sector is facing tough times, with operators warning that millions of Nigerians could lose access to services by 2025 if urgent action isn’t taken.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) raised this alarm during their end-of-year meeting, highlighting rising costs and tough economic conditions. They blamed inflation, unstable exchange rates, and high energy prices for making it harder to keep their operations running. Despite this, telecom tariffs have stayed the same for years.
Gbenga Adebayo, ALTON’s chairman, said, “The telecom sector can’t survive without reforms. Tariffs need to reflect the real cost of delivering services. Without that, we can’t promise uninterrupted services.”
He explained that operators might have to cut back services in certain areas or during specific times, leaving many Nigerians without access to communication. “This would hurt key sectors like security, business, healthcare, and education. The economy would take a big hit too,” he added.
ALTON has been negotiating with the Nigerian Communications Commission (NCC) for over a decade to adjust tariffs. So far, no agreement has been reached, and operators are feeling the strain.
In 2023, big players like MTN and Airtel lost a combined ₦1.29 trillion due to foreign exchange challenges. MTN alone reported losses of ₦514.93 billion in 2024, and Airtel’s revenue fell by nearly half. These financial struggles have forced operators to cut back on investments in their networks.
MTN Nigeria’s CEO, Karl Toriola, didn’t mince words: “If tariffs don’t go up, operators will be forced to shut down.”
The NCC, however, dismissed reports of an imminent tariff hike, calling them “speculative.”
Meanwhile, the Minister of Digital Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, hinted at upcoming changes. He said the government is studying ways to make the telecom sector more sustainable and competitive.
“By mid-2025, you’ll see real progress. Tariff increases might be part of the solution, but we also need to invest in digital infrastructure and take other steps to support the sector,” Tijani said.
The study’s results are expected soon and could provide a clearer plan to rescue the telecom industry from its current challenges.
