Tariff Hike: Telcos Warn of Imminent Shutdown
Nigerian telecom operators have issued a stark warning, cautioning that a delay in reviewing tariffs beyond the first quarter of 2025 could have severe repercussions, including undermining the sector’s growth prospects, destabilizing operations, and diminishing its economic contributions.
For the first time in over a decade, operators have consistently called for a tariff adjustment this year, citing rising operational costs driven by inflation and macroeconomic pressures.
Telecom executives say failure to implement timely changes could trigger widespread service disruptions and quality deterioration across the country.
“There should be a timeline, and that means everything should happen in the first quarter of 2025,” said the Chairman of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, in an interview.
He warned that missing this deadline would exacerbate the industry’s challenges.
“If nothing is done in the first quarter, the industry will continue to shrink. Infrastructure deployment, equipment procurement, and strategic planning all depend on timely action,” he added.
The telecom chief further emphasised the need for regulatory clarity, stating that even if adjustments do not occur immediately, the industry requires certainty to plan effectively.
The tariff review has been a contentious issue, with operators urging adjustments to reflect Nigeria’s current economic realities, including inflation and soaring operational expenses.
While the Nigerian Communications Commission is reportedly reviewing the proposals, it has yet to make a definitive announcement.
The Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, underscored the urgency of the situation.
“The telecom sector is a critical component of the country’s economy, and any disruption to services will have far-reaching implications for other sectors,” he said.
Adebayo highlighted the potential for “service shedding,” where operators might be forced to reduce services in certain areas or during specific times due to unsustainable costs.
“Millions could be disconnected, and critical sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure, would face serious disruptions,” he warned.
While telecom operators argue that cost-reflective tariffs are necessary to sustain operations, incentivise investment, and enhance service quality, consumer advocates have expressed concerns about the impact on already strained household budgets.
“The NCC has all the instruments and data to measure and fix the appropriate price,” Adebayo said, acknowledging that telcos rely on regulatory approval to implement any adjustments.
“We remain hopeful that the regulator will take decisive action early in the new year to ensure the sustainability of the industry,” he added.
The push for a tariff adjustment began in April 2024, but progress has been slow.
Both ATCON and ALTON have issued a joint statement urging the Federal Government to facilitate constructive dialogue with industry stakeholders to avert a crisis.
