Telecom Operators Warn of Industry Crisis Without Tariff Review by Q1 2025

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Nigerian telecom operators have raised alarms over the potential negative impact on the sector if a long-awaited tariff review is delayed beyond the first quarter of 2025. The operators, for the first time in over a decade, have consistently called for a tariff adjustment this year due to rising operational costs driven by inflation and macroeconomic pressures.

The telecom industry is warning that any failure to implement timely changes could lead to service disruptions, deteriorating service quality, and a slowdown in sector growth. “There should be a timeline, and that means everything should happen in the first quarter of 2025,” said Tony Emoekpere, Chairman of the Association of Telecommunications Companies of Nigeria (ATCON).

Emoekpere stressed that missing the first-quarter deadline would deepen the industry’s ongoing 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 sector is facing increasing operational costs, and the tariff review has become a critical issue, with operators seeking adjustments to reflect Nigeria’s current economic conditions. While the Nigerian Communications Commission (NCC) is reportedly reviewing the proposals, no official decision has yet been made.

Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), highlighted the urgency of the situation, stressing that the telecom sector is vital to the country’s economy. He warned that any disruption in services could have serious consequences for other sectors. “Millions could be disconnected, and critical sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure, would face serious disruptions,” Adebayo stated.

Operators argue that cost-reflective tariffs are essential for maintaining operations, attracting investment, and improving service quality. However, consumer advocates have raised concerns about the impact on household budgets, which are already under strain.

Despite the pressing need for a review, progress has been slow since the call for a tariff adjustment began in April 2024. Adebayo expressed hope that the NCC would take decisive action early in 2025 to ensure the sector’s sustainability. “The NCC has all the instruments and data to measure and fix the appropriate price,” he said, urging the regulator to act promptly to avoid a crisis.

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