By Stanley Iwuoha
The Association of Licensed Telecommunications of Nigeria (ALTON) has warned that Nigeria’s telecom industry faces collapse if tariffs aren’t increased immediately. The nation is already reeling from harsh economic realities and poor service quality in the telecom sector.
ALTON Chairman, Engr. Gbenga Adebayo, emphasized this position at the 93rd Telecom Consumer Parliament, organized by the Nigerian Communication Commission (NCC) in Abuja. Adebayo noted that the industry’s sustainability is threatened by high operational costs, making tariff increases necessary to prevent collapse.
Some of the key concerns he raised include: high operational costs leading to telecom companies struggle to cope with increasing expenses; unsustainable industry and data depletion which is fuelled by digital advancement.
“We’ll talk briefly about the issue of industry sustainability. I know the NCC will not like it because I call it to sound now like a broken record. But the fact remains that as an industry, this is a critical moment for us.
“It is important that if we don’t face the reality of what we face, we are at an inflection point. If we act, we can establish a platform for growth and delivery of better services, including better user experience.
“If we delay or fail to take decisions that are necessary, then the industry may not grow in the right direction. This will not only damage the interest of investors, many of whom are Nigerians and feel our daily pain, but will also impact on the emergence of innovation and services and products that ride telecom infrastructure and services.
“So NCC, I crave your indulgence because I know we have spoken a lot about this issue and I know you are doing many things to help us. We fully understand and appreciate the financial stress that Nigerians are experiencing today.
“The cost of living is the single most important factor in most people’s daily lives because I remember in times oast when people used to recharge 5,000 or 10,000, now 200, 300 Naira recharge is what is most common. Because people just don’t have the money to spend.
“These people, despite this, are still able to enjoy the benefits that connectivity brings. At the price they paid before these challenges became so acute. Imagine a future in which the gains of the last over 22 years are reversed. Nigeria and Nigerians simply cannot afford it.
“Let us keep Nigerian consumers at the heart of every decision that we make. And that’s now addressing my colleagues. The pain that we feel under those circumstances would be exponentially worse.
“In essence, if the industry is not sustainable and we can’t do things better, the pains of not doing anything would be worse. As we continue on the path of building a world-class telecom sector, we need to find a lasting solution and a long-term sustainable and manageable solution to this problem.”
“I’m sorry to say prices will need to rise, but actions need to be taken in measured ways through sustainable conversations and partnerships with government. It is time to address this issue and the time is now.
On data optimization, he said, “Optimizing the data experience, empowering consumers through awareness and commitment to transparency is all we need to do.
“And to every consumer, he said, ” Your voice matters. Your feedback, both constructive and otherwise, are critical.
“It is the compass that guides our improvement and innovations. Our members, along with our regulators, remain committed to listening to you, understanding your needs, and living on our promises.”
To mitigate these challenges, Nigeria has outlined strategic plans for economic growth and development. The National Development Plan (NDP) 2021-2025 aims to achieve average economic growth of 4.6 percent by 2025, lifting 35 million people out of poverty and creating 21 million full-time jobs.
Effective implementation of these strategies is believed to be capable to enhance Nigeria’s economic competitiveness, drive job creation, and generate inclusive growth . However, infrastructure development remains a significant challenge, requiring coordinated efforts from public, private, and social sectors.
In his keynote speech, the Executive Vice Chairman of NCC, said the issue of data consumption is not peculiar to Nigeria as it is fueled by digital advancements, and called for urgent attention to address consumer concerns over data depletion and billing transparency.
Representatives of telecom service providers who spoke at the event decried high cost of running business in Nigeria and called for their rescue, even as they promised to intensify efforts to improve quality of services and bridge the digital gap.
“Earlier this year, NCC analyzed consumer complaints, revealing data depletion and billing issues as top concerns. In response, we directed Mobile
Network Operators and ISPs to conduct audits of their billing systems,
which reported no major issues. However, perceptions persist due to two main factors: the impact of high-resolution devices and improved technologies on data
use and the complexity of operator tariffs.
“With the advent of 4G and 5G, as well as devices with ultrahighdefinition
screens, data consumption has naturally increased, ” he added.
