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Telecoms Sector Declared High-Risk by Insurers Amid ₦91.8 Billion Infrastructure Loss in 5 Months

The telecommunications industry in Nigeria is facing a growing crisis—and it’s not about data speed or call drops. In just five months, telecom operators have lost a staggering ₦91.8 billion due to the vandalism of telecom infrastructure, prompting insurance companies to classify the sector as “high risk.”

The warning comes from Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), who said that attacks on telecom sites have been happening daily since March 2025.

What’s Really Happening?

Across the country, telecom towers, solar-powered base stations, fiber optic cables, batteries, and diesel generators are being stolen or destroyed at an alarming rate.

According to Adebayo, an average of 5 telecom sites are vandalized every single day, with each site costing up to ₦120 million to install.

“From March to July alone, that’s roughly ₦600 million in losses per day, adding up to ₦91.8 billion so far,” Adebayo stated.

Why Are Vandals Targeting Telecom Sites?

The main reason is the value of the equipment. Thieves go after:

  • Solar panels and batteries
  • Power and fiber cables
  • Rectifiers and diesel fuel

These items are often resold in the unregulated solar and inverter market, where they’re used in home and office setups.

“We’ve seen many of these stolen items show up in the solar energy market. That’s why the thefts keep happening—they have buyers,” Adebayo explained.

he Real Impact on Nigerians

When a telecom site is damaged, the entire community connected to it suffers. Poor signal, dropped calls, slow internet—or no service at all. It’s even worse when a hub site is hit, as it affects multiple locations.

Some affected sites are in remote or high-risk areas, making it even harder for telecom companies to restore services.

“There’s a site near Abuja that’s been vandalized 10 times this year. We can’t keep sending our team there without proper security,” Adebayo said.

Why Insurers Are Now Pulling Back

Because of the high cost and frequency of these losses, insurance companies are stepping back. Many are either increasing premiums or refusing to cover telecom facilities altogether, declaring the sector too risky to insure.

What Needs to Be Done?

ALTON is now calling on the Office of the National Security Adviser (ONSA) and other security agencies to step in and protect telecom infrastructure.

“Without serious intervention, we risk losing more sites—and that means more communities without reliable telecom services,” Adebayo warned.

Why This Matters

This issue goes beyond just phone calls. It affects:

  • Internet connectivity
  • Mobile banking
  • Business operations
  • Emergency services
  • National security

If it continues unchecked, it could set back Nigeria’s digital progress by years.

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