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“Telecom Industry Hit by N5 Billion Loss and 2,500 Fibre Cuts – What’s Behind the Crisis?”

by Blessing Udoh
March 24, 2025
in Technology
Reading Time: 2 mins read
0

Telecommunications operators in Lagos have reported suffering 2,500 fibre cuts in 2024, leading to an estimated loss of N5 billion ($6.25 million). The issue was discussed at the seventh Policy Implementation Assisted Forum (PIAFo) held over the weekend in Lagos.

High-Risk Areas and Causes of Fibre Cuts

Operators identified Ikeja, Lekki, and Victoria Island as high-risk zones where frequent road expansions and private developments disrupt connectivity.

The major causes of fibre cuts include:

  • Construction and urban development – Road works and building projects damage fibre lines.
  • Illegal excavation and vandalism – Unapproved digging by individuals and groups.
  • Multiple regulatory authorities – Conflicting policies create coordination challenges.

Call for Stronger Preventive Measures

Despite existing regulations, fibre cuts persist. Jude Ighomena, a senior official at Broadbased Communications, called for stricter enforcement and compensation mechanisms.

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“Offenders must be held accountable. We need stricter penalties for unauthorized disruptions and better coordination among stakeholders,” he said.

The impacts of fibre cuts include:

  • Economic losses – Businesses suffer due to downtime.
  • Service disruptions – Poor connectivity frustrates users.
  • Security concerns – Weak networks can affect emergency response systems.

Proposal for a Regional Tariff Regime

At the forum, operators proposed a shift from the current national tariff system to a regional tariff model. This would allow pricing to reflect the ease or difficulty of doing business in each state.

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Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), explained:

“Some states are more difficult to operate in than others. A regional tariff system will ensure that states with better business environments get fairer rates, while those imposing tougher conditions bear the cost.”

Operators emphasized the need for:

  • Better infrastructure planning – Coordination between telecom companies and government agencies.
  • Tougher penalties – Stronger legal action against those causing fibre damage.
  • Stakeholder collaboration – Involvement of the public, telecoms, and civil society in policy-making.

With these measures, telecom operators hope to reduce disruptions, improve service quality, and create a fairer business environment across Nigeria.

 

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