Insurance companies in Nigeria have classified the telecoms sector as a high-risk industry following alarming rates of vandalism that have caused over ₦91.8 billion in damages in just five months.
The Association of Licensed Telecoms Operators of Nigeria (ALTON) disclosed this at the weekend in a statement raising the alarm over the escalating destruction of telecom infrastructure nationwide since March.
Chairman of ALTON, Gbenga Adebayo, confirmed in a telephone interview with THISDAY that the ongoing vandalism has not only disrupted telecommunications services but also shaken insurer confidence in the sector.
“Some insurance companies are now unwilling to continue underwriting telecoms facilities due to the frequency and cost of damages,” Adebayo said. “This is creating serious financial strain for telecom operators, and by extension, the Nigerian economy.”
He warned that unless urgent steps are taken to secure telecom infrastructure, operators may struggle to maintain service quality, and the sector’s stability could be further jeopardised.
The losses, which include damaged fibre cables, base stations, and power systems, are affecting both urban and rural connectivity and complicating efforts to expand Nigeria’s digital economy.
