Nigerian telecommunications companies have admitted experiencing revenue shortfalls, even as they are accused of implementing load shedding to control rising operational costs.
The operators however denied carrying out load-shedding to cut costs.
They acknowledged that current revenue levels were insufficient to sustain network operations.
Load-shedding involves extending the coverage area of each base station to compensate for the reduced number of active masts, effectively decreasing operational costs.
The President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, said load-shedding might not accurately reflect the current situation.
He said he was not aware any telco had commenced load-shedding, adding that none of the operators had made such announcements.
According to him, the real challenge was not operational losses but the sustainability of network services.
He argued that the operators faced a mismatch between revenue and operational costs.
“For instance, if a telecom company could afford to buy 3,000 litres of fuel last month but can only purchase 1,000 litres this month due to lower revenue, it may lead to reduced service levels. This is not a formal policy decision but a response to financial constraints,” he explained.
The Association of Licensed Telecom Operators of Nigeria (ALTON) and ATCON had in April argued that current tariffs were insufficient due to rising diesel prices, inflation, and currency devaluation.
They warned that without adjustments, the sustainability of the telecom sector was at risk, potentially impacting service quality and availability for consumers.
The Nigerian Communications Commission, the telecom regulator, has not approved any new tariff plans, emphasising that any adjustments must be justified and not adversely affect consumers.
The ATCON president further pointed out that although telecom companies had generated profits in the past, those profits had likely been used up, given that tariffs had not increased substantially in over a decade.
He stressed that any call for tariff increases reflected the need to address the financial pressures on the industry rather than an attempt to capitalise on past profits.
Emoekpere urged the government to take swift action if it plans to implement measures to assist telecom companies or increase tariffs.
The ATCON chair emphasised that any potential tariff hike was not meant to penalise consumers but was crucial for ensuring network sustainability.
“If telecom companies cannot cover their costs or recoup investments, their ability to provide services will be compromised,” he added.
The Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, did not respond to calls for comments on the matter.
