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You are at:Home»Highlights»Telecoms sector at brink of collapse
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Telecoms sector at brink of collapse

December 30, 2024No Comments3 Mins Read
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From Adanna Nnamani, Abuja

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has warned that the telecommunications sector in Nigeria is on the brink of collapse, with its survival hanging in the balance.

Chairman of ALTON, Engr. Gbenga Adebayo, who issued the warning at a recent stakeholders meeting , called for immediate and bold reforms to address the sector’s mounting challenges or risk a total breakdown of services in 2025.

Adebayo said that the telecommunications industry, which plays a critical role in Nigeria’s economy, is currently grappling with a host of issues, including soaring operational costs, skyrocketing energy prices, inflation, and volatile exchange rates.

He decried that despite these mounting pressures, telecom tariffs have remained largely unchanged, leaving network operators in a precarious financial position.

The association chairman noted that without a revision of tariffs to reflect current economic realities, operators will no longer be able to guarantee the availability of services across the country.

 

“If nothing is done, we might begin see in the new year grim consequences unfolding, such as Service Shedding; 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. There will also be National Economic Disruption where Key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.

 

As we navigate this near turbulent year for the sector, we are confident that history will judge us right for the role we have played in an attempt to rescue this sector. Stakeholders have stood together to uphold the values and importance of telecommunications in our society.

 

However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just

 

 

“a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come.

 

“Despite the dire warnings, we still believe that a better 2025 is possible—but only if we act now. Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.

 

“If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardize one of the most critical pillars of Nigeria’s development. But if we succeed, 2025 can be the year we turned things around—a year of hope, resilience, and sustainability for the telecom industry.

The time for action is now. Let us not wait until it is too late. ALTON stands ready to work with all stakeholders to ensure the survival and prosperity of this sector,” he stated.

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