Bosun Tijani: 100% increase in telecom tariff unfair to Nigerians, hike will not exceed 60%
Telecom Tariff Hike to Cap at 60%, Says Minister Bosun Tijani
Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has confirmed that any increase in telecommunications tariffs will not exceed 60 per cent, rejecting the demand by telecom operators for a 100 per cent hike.
Speaking on Politics Today, a Channels Television program, Tijani emphasized the government’s commitment to balancing economic sustainability and affordability for Nigerians.
“I think they should only increase by not more than anywhere between 30 to 60 per cent,” Tijani stated.
He explained that approving a 100 per cent tariff hike would severely affect Nigerians, making services unaffordable and stalling economic growth. To mitigate this, the government is focused on fostering sustainability within the sector.
“We’re asking difficult questions, like can we increase the local content in that sector? This means reducing the amount of imports and reliance on foreign exchange, which is more expensive,” he noted.
Measures to Support the Telecom Sector
The minister highlighted several steps the government has taken to support the telecommunications industry, including the designation of telecom infrastructure as critical national infrastructure. This status aims to deter vandalism and reduce repair costs for telecom operators.
“When people vandalize telecommunications equipment, it drops the quality of service and costs companies a lot to repair. By declaring the infrastructure critical, we are protecting these assets and improving service delivery,” he explained.
In addition, Tijani pointed to tax reforms aimed at harmonizing and reducing the tax burden on telecom operators to create a favourable business environment.
Government Investments to Expand Connectivity
Tijani revealed that the government is investing in infrastructure projects, including 90,000 kilometres of fibre-optic cable and telecommunications towers in remote areas, to expand connectivity and reduce costs for operators.
“This investment will allow companies to reach more people, especially in underserved rural areas, without making heavy investments,” the minister said.
Recommendations and Next Steps
Tijani stated that his team’s recommendations, based on reports from consultancy firm KPMG, would soon be finalized and circulated. These recommendations are expected to address key challenges and set a clear path for the sector’s sustainable growth.
The government’s approach seeks to ensure that telecom operators remain profitable while safeguarding the interests of consumers and fostering broader economic development.
