Nigerian Telecom Operators Slash 383 Jobs as Operating Costs Skyrocket 85% Due to Inflation and Forex Crisis

Nigeria’s vital telecommunications sector is facing severe headwinds as the combined pressures of rising inflation and critical foreign exchange (forex) woes have forced operators to significantly cut operational costs, leading to job losses. Data from the Nigerian Communications Commission (NCC) confirms that the industry’s total workforce was reduced by 383 employees in one year.

According to the NCC’s 2023 and 2024 Year-End Performance Reports, the industry’s total staff strength across licensed operators fell from 17,882 workers in December 2023 to 17,499 workers by December 2024. This reduction occurred as the industry grappled with an astonishing 85.35% year-on-year increase in operating expenses, which surged from ₦3.16 trillion to ₦5.85 trillion within the same period.

The NCC attributed the skyrocketing expenditure to macroeconomic challenges, primarily high energy costs required to power base stations, persistent inflationary pressure, and the difficulty in accessing forex needed to import crucial network equipment and technology upgrades.

GSM and ISP Segments Hit Hardest

A breakdown of the employment figures shows that the workforce reduction was concentrated in the key market segments. GSM operators led the cuts, shedding staff from 7,212 to 6,658. Internet Service Providers (ISPs) and Value-Added Service (VAS) providers also saw notable workforce reductions as they sought to optimize operations against the difficult economic backdrop.

The job cuts underscore a challenging period for the sector, which, despite recording high revenue growth (44.70% in 2024), saw its profitability severely eroded by the astronomical rise in costs. Telecom operators have persistently complained that delayed and inadequate tariff hikes have left them unable to maintain, expand, or modernize their networks, ultimately placing the sustainability of the entire sector at risk.

The NCC report noted that even though the commission secured zero Right-of-Way (RoW) fees in some states, operators continue to struggle with multiple taxation and the harsh microeconomic environment, necessitating drastic measures like workforce reduction to stay afloat.