Survival of Telecom Sector in 2025 Uncertain, ALTON Cries Out

Highlights

• Sector is under siege
• Operators crave bold reforms
• Clamour for tariff review ricochets 
• Service shedding imminent

The survival of Nigeria’s telecommunications sector in 2025 and beyond has become dicey due to various challenges confronting the sector, operators have warned.

Their umbrella body, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has issued an urgent and critical call to action to secure the future of the telecoms industry, a sector christened as the driver and enabler for other sectors.

In his speech at the Stakeholders End of the Year Dinner held on Sunday, the National Chairman of ALTON, Engr. Gbenga Adebayo asserted that the survival of the telecom sector demands immediate and bold reform for its sustainability.

In the address titled: ‘Before the Final Call – Telecom – As Sector under Seige’, he said “this 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.”

Adebayo reiterated even with greater urgency that Nigeria is in the last days for the survival of the telecom sector, sternly warning that if immediate and decisive action is not taken, the hope for a better 2025 will never materialise.

A Sector under Siege

While Adebayo admitted that the challenges operators are facing are not new, he said they have become more acute and more threatening with this passing year.

According to him, rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst other have all placed an unsustainable burden on network operators.

“Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire.

“The resources needed to maintain, expand, and modernize our networks are simply no longer available. Without intervention, the future of this sector is at grave risk,” he said.

He further warned that if nothing is done, Nigeria might begin to see in the new year grim consequences unfolding.

Such consequences, according to ALTON, include service shedding as operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected.

This will lead to significant economic fallout as businesses will suffer from a lack of connectivity, stalling growth and innovation.

There will also be national economic disruption where key sectors such as security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.

The ALTON chairman further said that history will judge operators right for the role they have played in an attempt to rescue this sector.

He said: “As we navigate this near turbulent year for the sector, we are confident that history will judge us right for the role we have played in an attempt to rescue this sector. Stakeholders have stood together to uphold the values and importance of telecommunications in our society.

“However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come,” the ALTON boss said.

Securing 2025 and Beyond

Despite the dire warnings, ALTON believes a better 2025 is still possible, provided the country acts now.

“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.

“If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardize one of the most critical pillars of Nigeria’s development.

“But if we succeed, 2025 can be the year we turned things around—a year of hope, resilience, and sustainability for the telecom industry.

“The time for action is now. Let us not wait until it is too late. ALTON stands ready to work with all stakeholders to ensure the survival and prosperity of this sector,” Adebayo concluded.