By Chinenye Anuforo
Nigeria’s telecommunications industry is facing some challenges and needs the intervention of the government to salvage. This was disclosed by the Chairman of Association of Licensed Telecommunications companies of Nigeria (ALTON), Gbenga Adebayo, during Channels Television’s The Morning Brief breakfast show held during the weekend.
Adebayo who bemoaned deteriorating infrastructure due to a steep drop in investment said, “This decline is blamed on economic challenges, leading to outdated systems, poor service and price hikes.”
He argued that telecom companies are struggling financially and may be forced to shut down if the situation doesn’t improve. He said the current prices don’t cover operational costs and the operators have requested a dialogue with the government to find a solution that balances affordability for consumers with their financial viability.
Adebayo emphasized the need for government intervention. He points to the energy sector as an example of where neglecting infrastructure investment led to problems. He urged policymakers to create a more attractive investment environment to spur growth in the telecom sector.
However, statistics paint a worrying picture. Investment in telecoms plunged from $456.8 million in 2022 to just $134 million in 2023, a 70% decrease. Despite spending over 2 trillion naira on operations in 2022, operators claimed they are losing money. Nigeria has over 34,000 telecom towers and 127,000 base stations, but significant investment is needed to maintain and improve the network.
“Without urgent action, millions of Nigerians could lose access to vital communication services. The government and industry stakeholders need to work together to find a sustainable solution that ensures Nigerians have access to reliable and affordable telecommunication services”, Adebayo stated.
Speaking to Daily Sun, the president, Association of Telecommunications Companies of Nigeria (ATCON), Tony Izuagbe Emoekpere, reiterated that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.
Despite the adverse economic headwinds, Emoekpere averred that the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints. “For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” he affirmed.
The president therefore called upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.