Engr. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria

The telecoms market in Africa's most populous country, Nigeria, is in turmoil, with businesses appealing for a 100% tariff rise from the regulator, who appears unfazed by their requests.

This first week of 2025 has been dominated by reports that the regulator's failure to adjust rates will result in serious consequences.

Engr. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, laid out a picture of Nigeria's telecoms business during his remarks at the organisation's end-of-year dinner.

Adebayo cautioned: “If nothing is done, we might begin to see grim outcomes, such as service shedding. Operators may not be able to provide services in certain areas or during some times of the day, leaving millions of Nigerians disconnected.

“The economic fallout will be significant, with businesses suffering from a lack of connectivity, stalling growth and innovation. Key sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure, will face serious disruptions.”

He went on to say: “This is not a time for further deliberation or delayed decisions. The survival of the telecom sector demands immediate and bold reform for its sustainability.

“Our tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.

“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 merry-go-round between Nigerian telcos and the regulator, the Nigerian Communications Commission, has been unravelling for several months.

Nigerian telecom businesses have been advocating for higher telecom tariffs and for legislation that they believe will benefit them and increase their ability to invest in network infrastructure.

Last week, MTN Nigeria CEO Karl Olutokun Toriola appeared on local television station, Arise News, to address the telco sector challenges, also calling for an urgent review of prices and increase tariffs by 100%.

In his speech, Adebayo also said that the issues facing the telecom business are not new, but they have become more serious in the last year.

Rising operational costs, increasing energy prices, inflationary pressures, and changing exchange rates have all created an unsustainable pressure on businesses, he said.

He elaborated: “Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire. The resources needed to maintain, expand, and modernise our networks are simply no longer available. Without intervention, the future of this sector is at grave risk.”