The Association of Licensed Telecoms Operators of Nigeria (ALTON) has addressed the rumored intention of telecommunications firms to implement load shedding as a response to the economic difficulties they are facing.
In an exclusive discussion with SaharaReporters, Adebayo
refuted claims that telecom companies have initiated load shedding.
He did, however, acknowledge that if the current economic
conditions continue, load shedding could become a reality.
Adebayo stated, “This is not accurate; there is no practice
of load shedding among companies. What we have indicated is that the prevailing
conditions are not conducive for business operations.”
“We have raised concerns regarding the sustainability of
telecom businesses and emphasized the necessity for policy reviews and
interventions, but we have not reached a point where load shedding is
required,” he explained.
When asked about the potential for load shedding if the
existing challenges persist, he confirmed that it could indeed become a
possibility due to the ongoing economic pressures on telecom companies.
He stated that while they hope to avoid reaching a critical
point, persistent issues could lead to load shedding.
He recalled a time when the electricity sector faced severe
challenges, noting that the country once experienced only 18 hours of
electricity availability, a situation that has since improved, thanks to
government initiatives like Bands A, B, and C.
He pointed out that taxation is a significant challenge for
the sector.
He remarked, "I appreciate the President's recent
signing of the critical infrastructure bill, which aims to safeguard the
nation's essential services. However, taxation remains a pressing concern. The
current tax burden is unsustainable for any industry."
Adebayo refuted claims that load shedding has caused
widespread network disruptions across the nation.
He highlighted that even minor network issues can have a
profound effect on daily activities, given the essential nature of
telecommunications. This statement follows requests from operators for a tariff
increase from the NCC to help manage escalating operational costs, including
rising diesel prices, infrastructure upkeep, and a declining naira, in an
effort to ease their financial difficulties.
MTN Nigeria, a leading telecommunications company, reported
a post-tax loss of $519.1 billion for the first half of 2024, attributing it to
soaring inflation and a weakened naira.
In May, Airtel Africa Plc, Nigeria's second-largest telecom
operator, announced a post-tax loss of $89 million for the fiscal year ending
March 2024, citing a significant foreign exchange loss of $549 million as the
primary reason for the downturn.
Recently, Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, spoke on the matter, urging telecom operators to “seek innovative solutions to mitigate inflationary pressures and elevated operating costs.” His remarks indicate the government's position that telecom companies should pursue alternative financial strategies rather than immediately increasing tariffs.
As the economic situation worsens, Nigerians may soon face more frequent network disruptions, akin to the inconsistent electricity supply experienced in various regions under NERC’s band distribution strategy. The ongoing difficulties in the telecom sector underscore the larger challenges of managing costs while ensuring service delivery in a challenging economic environment.