Telecom companies in Nigeria have expressed worries over escalating operational costs. They warned that there will likely be service interruptions if prices for their services are not adjusted to match the current economic situation.
Gbenga Adebayo, the head of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), issued the caution in a formal statement on Monday. He described the telecom industry as being “under heavy pressure.”
Adebayo highlighted the challenges facing the industry, citing inflation, unstable exchange rates, and increasing energy costs, which are pushing up their expenses. He also mentioned that despite these issues, the prices for telecom services have stayed the same, putting a lot of financial strain on the companies.
“The telecom industry is struggling with high costs that are hard to maintain. If prices for services aren’t raised soon, companies might have to cut back on their services,” Adebayo warned.
Cutting back on services means intentionally reducing or limiting telecom offerings in certain areas or at specific times, which could leave many Nigerians without access. Adebayo warned that this could lead to serious problems.
“If nothing is done, we might see dire outcomes in the new year. Companies might have to reduce services in some areas or at certain times, leaving millions of Nigerians disconnected. This would have a big impact on the economy, harming businesses and slowing down progress and new ideas,” he said.
He further explained that critical sectors such as security, business, healthcare, and education, which depend a lot on telecom infrastructure, would face serious problems if services were limited.
Adebayo emphasized that the financial pressure on telecom companies has become too much to handle, putting their ability to upgrade and keep up crucial systems in danger. He worried that without quick action, the future of the telecom industry could be in trouble.