Early last week, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) announced a nationwide temporary suspension of Subscriber Identification Module (SIM) card services. This decision was taken in response to concerns raised by the National Identity Management Commission (NIMC) regarding the migration of SIM-related services to the national identity verification platform.
In a statement issued on Tuesday, July 1, 2025 and signed by ALTON chairman, Engr. Gbenga Adebayo and publicity secretary, Damian Udeh the group acknowledged that the transition – affecting processes such as SIM swaps, replacements, new activations and mobile number portability – has introduced unforeseen technical challenges. These have resulted in a temporary disruption of real-time identity verification nationwide.
While ALTON maintained it was merely complying with NIMC’s directive, there are strong indications that the decision was also a strategic response to mounting network congestion and the growing instability in telecommunications infrastructure. These service issues have worsened in recent times, leading to frustrating and often exasperating user experiences.
At the root of this crisis lies a complex web of challenges – decaying infrastructure, volatile foreign exchange rates, customer apathy due to economic downturns and low purchasing power. Mobile network operators (MNOs) are caught in a chokehold. Their revenues are dwindling, while operational costs continue to rise sharply. Many are unable to replace or upgrade critical components of their infrastructure, and rural investment has taken a back seat in favour of more economically viable urban areas.
However, even in so-called urban strongholds, there are black spots. There are entire neighbourhoods where subscribers must physically move around to “catch” a signal. Call drops, failed call setups, buffering video calls and snail-speed data remain daily nuisances. Poor quality of service has become so normalised that some customers shrug in resignation. Only a few dare to complain. Those who do often find themselves speaking into the void.
The truth is, ALTON and its members are increasingly helpless. The Nigerian Communications Commission (NCC), the industry regulator, seems equally constrained. Beyond issuing policy guidelines and quality of service (QoS) frameworks, its capacity to enforce meaningful change is limited in an economy where business decisions are dictated more by survival than by best practices.
Operators are forced to make tough calls. Their ability to expand networks or upgrade systems is directly linked to the availability of funding. Foreign direct investment (FDI) into Nigeria’s telecom sector has been in steep decline for years. Local funding is inadequate, and foreign exchange, a crucial lifeline for telecom equipment procurement, is not only scarce but outrageously expensive.
The reality is that virtually every major piece of telecom hardware and software in Nigeria is imported. From base transceiver stations and towers to routers, licensing systems and satellite links, nothing is made locally. The foreign exchange crisis makes procurement a nightmare. Delays in sourcing dollars delay equipment imports. Costlier parallel market rates squeeze already-stressed balance sheets. International vendors are not paid on time, which jeopardises maintenance contracts. And every delay means postponed repairs, slower rollouts of 4G or 5G and longer outages for millions of users.
Last week, ALTON made this point clear, stating that the SIM service disruption stemmed from NIMC’s directive to migrate to a new identity verification platform. While technically accurate, the truth runs deeper. This migration further strained an already overwhelmed system that has been groaning under a lack of investment and skyrocketing operational costs.
In 2024, the NCC introduced comprehensive quality of service thresholds aimed at improving telecom service performance. These regulations were laid out in the Nigerian Communications (quality of service) Regulations, 2024 and supported by accompanying business rules. The guidelines established key performance indicators (KPIs) for 2G, 3G and 4G networks. These included drop call rate (the percentage of calls that get cut off), call setup success rate (the percentage of calls successfully connected) and traffic congestion levels (which indicate network overload).
To ensure compliance, the NCC assigned performance thresholds by geographical zones. Priority 1 areas, like Lagos, Abuja and Rivers, were expected to meet 100 per cent KPI compliance. Priority 2 areas had an 80 per cent threshold, while Priority 3 areas were expected to hit 70 per cent. Operators were required to file monthly reports detailing their performance. The NCC also conducted drive tests, consumer surveys and network diagnostics through its network operating centres (NOCs).
The rules were sound on paper. Operators that failed to meet standards faced fines – ₦5 million per infraction and ₦500,000 for every day the problem persisted. In more severe cases, fines could rise to ₦15 million, with daily penalties of ₦2.5 million. But the real question remains, “How do you penalise an operator that is already struggling to stay afloat?” How does the NCC enforce fines when these same operators are gasping for air?
What is often overlooked in these conversations is the scale of systemic problems afflicting the sector. Many network components are outdated or poorly maintained, leading to frequent breakdowns. Rural areas continue to suffer from underinvestment, with service expansion limited by high infrastructure costs and low financial returns. The electricity supply crisis compounds matters. With power outages rampant, MNOs rely on diesel generators. Fuel costs are punishing, and even solar solutions are expensive to install at scale.
Network congestion has become a monster of its own. Subscriber bases have grown dramatically, but infrastructure has not kept pace. A base station built for 10,000 users now serves 60,000, leading to dropped calls and sluggish internet. Regulatory red tape further delays the rollout of new towers or spectrum allocation, and in many states, local authorities impose high levies on right-of-way permits, further slowing expansion.
Security challenges have also reared their heads. Vandalism, theft of telecom equipment and sabotage are increasingly common. Replacing stolen cables or batteries eats into the little budget operators have left. At the same time, the spectrum allocated to operators remains limited. Without sufficient bandwidth, the network cannot scale.
Even technical expertise is in short supply. Many skilled telecom engineers have emigrated in search of better opportunities. The few who remain are stretched thin, juggling maintenance work, upgrades and emergency repairs across vast service areas.
It doesn’t end there. High operational costs, policy unpredictability and economic instability have created an environment where innovation is stifled. Telecom operators are unable to make long-term plans because the ground is constantly shifting beneath them. Rolling out 5G, for example, is not just about bandwidth or towers; it requires infrastructure, skilled manpower and financial muscle, all of which are lacking.
Operators continue to lament that difficult terrain, sparse populations in rural areas and rising insecurity make expansion a high-risk, low-return venture. These realities must be acknowledged, not wished away.
In summary, the persistent poor quality of telecom services in Nigeria is not due to negligence or lack of will. It is the inevitable outcome of layered, interdependent problems – underinvestment, foreign exchange woes, decaying infrastructure, power challenges, congestion, regulation gaps, insecurity and policy inconsistency.
To fix this, Nigeria must do more than issue policy papers and penalties. There needs to be a coordinated national strategy that brings together the government, private sector, regulators and international partners. Infrastructure financing must be reimagined. FX bottlenecks must be addressed. Spectrum allocation must be efficient. Rural connectivity must be incentivised. Most importantly, the user experience must become the central metric by which all players are judged.
Until then, we will continue to have the same conversation about dropped calls, poor data and the growing frustration of millions of Nigerian telecom subscribers, who are increasingly paying more for less.
