Nigerian Telecom Operators Consider Load-Shedding Amid Financial Strain

Telecom operators in Nigeria are contemplating a load-shedding strategy, according to the power sector’s approach, to manage their services while advocating for higher tariffs due to escalating financial pressures.

Recently at the “Telecom Industry 2.0” event, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), underscored the severe challenges faced by telecom companies. These includes high taxes, unpaid debts, and new rental charges. Adebayo warned that these issues could lead to reduced telecom coverage as operators struggle to maintain all their sites.

He also reminded attendees that when telecom services were first introduced in Nigeria in 2001, the government had promised 18 hours of daily power supply, a promise that remains unfulfilled. Consequently, telecom companies have had to bear significant power costs themselves.

This development has elicited reactions from key stakeholders, including the Nigerian Communications Commission (NCC) and the National Association of Telecom Subscribers of Nigeria (NATCOMS). The NCC acknowledges the challenging environment but views the load-shedding proposal as a tactic to push for a tariff hike, expressing skepticism about its effectiveness.

Chief Deolu Ogubanjo, President of NATCOMS, expressed concern that subscribers might hold the NCC accountable if the load-shedding strategy is implemented and leads to service disruption. He emphasized that such a move could have adverse effect not only on telecom services but also critical sectors like banking, education, and healthcare that rely heavily on telecommunications. Ogubanjo’s group is advocating for fair tariffs to cover the high operational costs but is frustrated with the regulator’s inaction as expenses continue to rise.



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