After 11 years of tariff stability, the industry is facing significant increases in operational costs and investments in network expansion and upgrades.

In a joint statement from the Association of Licensed Telecom Companies of Nigeria and the Association of Telecom Companies of Nigeria obtained on Thursday, the associations urged the Federal Government to facilitate constructive dialogue with industry stakeholders.

They aim to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

The statement reads, “Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints.”

ALTON and ATCON expressed concerns over willful vandalism, theft, and other challenges hindering the sector’s growth.

They called for the protection of assets and network infrastructure, urging the government to pass legislation designating telecommunications infrastructure as critical national infrastructure.

Telecommunications infrastructure plays a pivotal role in Nigeria’s national security and socioeconomic growth. The country faces multiple security challenges that require urgent actions, and attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services, resulting in significant financial losses for operators.

Regarding infrastructure deficits, ALTON and ATCON highlighted challenges such as multiple taxation, prohibitive right-of-way charges, inadequate electric power supply, and vandalism of telecommunications infrastructure.

On regulatory independence, the groups demanded the sustenance of independence in the regulatory landscape to safeguard against undue influence.

They stressed that regulatory neutrality and independence were crucial for a thriving telecommunications sector.

The associations reaffirmed their commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

The statement concluded, “By fostering a conducive regulatory environment, prioritising infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development.”

Meanwhile, investments in Nigeria’s telecommunications sector decreased to $134m in 2023 from $456.8m in the corresponding year, representing a decline of approximately 70.5%, according to the National Bureau of Statistics. Experts warn that depleting investments in the sector could challenge telecom companies to maintain or enhance the quality of their services.

The Minister of Communications and Digital Economy, Isa Pantami announced this suspension on Monday during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja.

The minister explained that the suspension was necessitated because the telecommunications sector is already overburdened by excessive and multiple taxations.

Recall that the Federal Government through the Budget Office of the Federation had earlier revealed that it would begin the implementation of its proposed excise duties on telecommunication services and beverages in 2023.

However, Pantami has maintained that he is against the implementation of this tax, which would increase the cost of telecommunication services for Nigerians.

The commission noted that the situation underlines the need for all stakeholders to put their hands together toward protecting the structures as theirs.

Professor Umar Garba Danbatta, the executive vice-chairman of the NCC, made this revelation during a telecom consumer conversation village square dialogue with the theme ‘Protection of Telecom infrastructure for improved quality of service, the role of residents,’ organised by the NCC.

The EVC NCC, represented by Engr Bako Wakili, NCC director, Technical Standard and Network Integrity Department, at the event, Danbatta said the commission is sensitising the public on the need for communities to own up the structure.

He said vandalisation of telecom structures reduced the quality of service as well as coverage area leading to dead spots on the network which result in poor quality of service, adding that it also discouraged investors from investing in Nigeria should their infrastructures be continuously vandalized or stolen.

Similarly, Malam Shu’aibu Swade, NCC zonal controller in Kano, said there is a need for robust sensitisation to solicit communities’ cooperation in protecting and guarding telecom structures for improved quality services to consumers.

He further stated that there is a need for the communities to understand that it is a duty upon them not to damage telecom infrastructure and also to allow installation of equipment and maintenance and or repairs on sites by the technical staff of service providers for quality telecom service delivery.