By Madmo Correspondence
Nigeria’s telecommunications industry is facing severe financial pressures, with operators warning of potential service disruptions if tariffs are not reviewed to address escalating operational costs.
Mounting Financial Challenges
Telecom companies, including industry giant MTN Nigeria, have reported significant financial losses driven by naira devaluation and high inflation rates. MTN, in particular, disclosed a loss of ₦519.1 billion in the first half of 2024, attributing it to foreign exchange losses and inflationary pressures.
Calls for Tariff Adjustment
The National Association of Telecommunications Subscribers (NATCOMS) has called on the Nigerian Communications Commission (NCC) to approve a 10% increase in tariffs. The last review occurred over a decade ago, and stakeholders argue that the hike is crucial to sustaining operations and maintaining service quality.
Potential Service Disruptions
In a bid to manage escalating costs, telecom operators are considering load-shedding strategies similar to those used in Nigeria’s power sector. This approach may involve shutting down parts of their networks temporarily, potentially affecting millions of subscribers nationwide.
USSD Service Dispute
Compounding the sector’s woes is an ongoing dispute between telecom operators and banks over unpaid fees for Unstructured Supplementary Service Data (USSD) services. Operators claim the debt exceeds ₦250 billion and have threatened to withdraw USSD services used for financial transactions if the matter is not resolved.
Industry at a Crossroads
The rising costs, tariff disputes, and operational challenges highlight the precarious state of the telecommunications sector. Stakeholders are urging swift intervention from regulatory authorities to prevent service disruptions and ensure the industry remains sustainable.
As inflation continues to strain businesses across Nigeria, the fate of the telecom sector could have far-reaching implications for the nation’s economy and its digital future.
