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Business & Economy
Business & Economy

Concerns as telecom operators record N5billion loss, 2,500 fibre cuts

The FrontierThe FrontierMarch 24, 2025 2652 Minutes read0

•Telecoms masts

Telecommunications operators have disclosed that they suffered 2,500 fibre cuts in Lagos in 2024, which caused them an estimated N5 billion ($6.25 million) in losses.This was revealed in Lagos at the weekend at the seventh edition of the Policy Implementation Assisted Forum (PIAFo).

According to them, high-risk zones, where the cuts have been more pronounced include Ikeja, Lekki and Victoria Island, where road expansions and private developments frequently disrupt connectivity, reports The Guardian.

They submitted that the recurring incidents highlighted the urgent need for stronger preventive measures, legal enforcement and coordinated infrastructure planning.

Speaking at the forum, themed: “Strengthening Protection of Critical Information Infrastructure through Proactive Implementation and Strategic Coordination,” a senior official, Broadbased Communications, Jude Ighomena, said despite existing regulations, fibre cuts had persisted, highlighting the urgent need for redress and compensation mechanisms.

Ighomena, who said offenders must be held accountable, advocated stricter enforcement, and implementation of preventive strategies to safeguard telecoms investments. He listed key causes of fibre cuts as construction and urban development, illegal excavation and vandalism and multiple regulatory authorities.

According to him, the impacts of the cuts are huge, including economic losses, service disruptions, consumer frustration and security concern. On the need for redress, he said: “To address the persistent issue of fibre cuts, a robust compensation and redress framework is essential. Policy reforms should mandate stricter penalties for unauthorised fibre disruptions, ensuring offenders are held accountable. Stakeholder engagement is critical, bringing together government agencies, telecoms operators, and civil society to create enforceable policies and improve coordination.”

Meanwhile, earlier at the forum, operators mulled the review of the current national tariff plans to usher in a regional tariff regime that would factor in the specific challenges in each state to their tariff plans.

According to them, a regional tariff regime will ensure that the states with better ease of doing business are compensated while those making their operations difficult are made to pay higher for the service.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said some states were very difficult to operate and should be factored into the cost of operations.

“We may have to reconsider issue of our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas to the cost of providing services,” he said.

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