ALTON warns states risk losing telecom investments over hostile policies

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has raised concerns that some states may be excluded from fresh telecom investments and improved connectivity due to unfriendly policies and multiple levies imposed on operators.

Speaking at the unveiling of Nigeria’s first Digital Museum over the weekend, ALTON Chairman, Engr. Gbenga Adebayo, disclosed that the telecom industry is witnessing renewed growth after years of sluggish investment.

However, he cautioned that state-level barriers such as excessive taxation, right-of-way challenges, and bureaucratic bottlenecks could stifle progress.

“The digital train is moving very fast. States that create hostile conditions for telecom operations risk being left behind. Where deployment is unwelcome, investments will move to more supportive neighbouring states, and citizens of unfriendly states will inevitably suffer limited connectivity,” Adebayo warned.

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According to him, operators are currently expanding aggressively—building new sites, upgrading infrastructure, and migrating capacity to high-speed fibre networks—at levels not seen since before the COVID-19 pandemic.

He emphasized, however, that without enabling policies at the subnational level, not all regions will benefit equally.

For residents, this could mean slower broadband rollout, fewer investment-linked jobs, and limited access to digital services. Adebayo stressed that operators will no longer plead indefinitely for cooperation from state governments, as investments naturally gravitate towards more supportive jurisdictions.

Despite these concerns, he commended the Federal Government for ongoing reforms to address multiple taxation, particularly through the Presidential Tax and Fiscal Policy Reform Committee.

He noted that operators currently bear over 56 different taxes and levies, but upcoming reforms expected by January 2026 should ease the burden and encourage fresh capital inflows.

Adebayo also lauded the inauguration of the new Nigerian Communications Commission (NCC) Board chaired by Idris Olorunimbe, describing it as a step toward stronger governance and sector stability.

He further highlighted the rebranding of 9Mobile to T2 as a confidence booster for investors.

The ALTON boss said the telecom sector is “on the march again,” powered by new infrastructure investments, enhanced site security measures, and workforce training to meet NCC’s quality-of-service benchmarks.

He, however, appealed to the public to help safeguard telecom infrastructure, warning against vandalism and trading in stolen equipment.

“The transformation we are witnessing in our sector has not been experienced in recent years… but for this to be sustainable, all stakeholders, especially state governments, must play their part. Telecoms is not just about calls and data—it is a driver of national economic stability and growth,” Adebayo concluded.

His remarks come on the heels of recent disclosures by the Executive Vice Chairman of the NCC, Dr. Aminu Maida, who confirmed that the sector has already attracted over $1 billion in new infrastructure investments this year.

Maida attributed the inflows to renewed investor confidence following the Commission’s decision in January to reintroduce market-driven pricing, which allowed mobile operators to adjust tariffs by up to 50% after nearly a decade of frozen rates.