Telecoms Sector May Collapse in 2025 Without Tariff Hike, Telcos Warn

Emma Okonji

Telecoms operators under the aegis of the Association of Licensed Telecons Operators of Nigeria (ALTON), have stressed the need for upward tariff review as well as the introduction of new reforms in the telecoms sector in 2025.

According to them, the sector risks total collapse in 2025, if telecons tariffs are not reviewed upwards. 

The operators spoke at the end of year dinner organised for its members, stressing the need for government to revisit the issue of tariff hike as earlier demanded by the telecos. 

They were of the view that if nothing was done about tariff hike, the operators may not be able to sustain the industry in 2025.

According to them, this is not a time for further deliberation or delayed decisions, insisting that the federal government must act fast. 

In a statement issued at the end of year dinner, the operators said: “The survival of the telecoms sector demands immediate and bold reform for its sustainability, our tariffs must be reviewed to reflect the economic realities of delivering telecoms services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.”

Chairman of ALTON and spokesman for telecoms operators, Mr. Gbenga Adebayo, said: “I must say it again with even greater urgency that we are in the last days for the survival of this sector and if immediate and decisive action is not taken, the hope for a better 2025 will remain just that—a hope. The challenges we face are not new, but they have become more acute and more threatening with this passing year. Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst other have all placed an unsustainable burden on network operators. Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire. The resources needed to maintain, expand, and modernize our networks are simply no longer available. Without intervention, the future of this sector is at grave risk.”

According to the statement, “If nothing is done, we might begin see in the new year grim consequences unfolding, such as service shedding; and operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected. There will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.”