Telecom Tariff Will Increase but Not by 100% – Minister of Communications
Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that while telecom tariffs will increase, they will not rise by the 100% proposed by telecommunications operators.
Tijani disclosed this during an interview with journalists on Wednesday, following a stakeholders’ meeting in Abuja. A video of his remarks was shared by Channels TV on X (formerly Twitter).
The proposed tariff hike, submitted by telecom operators to the Nigerian Communications Commission (NCC), seeks a 100% increase in call and data costs. Operators, including MTN Nigeria, have attributed the request to rising operational expenses driven by inflation and escalating costs of service delivery.
Speaking to journalists, Tijani emphasised that the government is working to balance the interests of Nigerians and the telecommunications industry.
“The verdict is that tariffs will increase, but not by 100 per cent. We are still reviewing the commissioned study, and the Nigerian Communications Commission will issue directives to strike a balance. This is about protecting Nigerians while ensuring telecom companies can continue to invest significantly,” the minister said.
Tijani acknowledged the challenges posed by global inflationary pressures on the sector, describing the tariff adjustment as necessary for sustainable growth. He highlighted the importance of proper regulation to ensure that the telecommunications industry remains viable while minimising the impact of any price hike on Nigerians.
The minister also outlined key government initiatives aimed at strengthening the sector. These include enforcing the executive order to safeguard telecommunications infrastructure and boosting local content in the industry. He reiterated the government’s commitment to mitigating the impact of tariff increases through targeted interventions.
“The study we commissioned is helping us explore ways to sustain the sector without causing significant hardship for our people. Even where challenges exist, we are devising strategies to alleviate them,” Tijani added.
Meanwhile, Karl Toriola, the Chief Executive Officer of MTN Nigeria, revealed during an interview on Arise TV last week that telecom companies had submitted their proposal for a 100% tariff increase to the NCC.
“We’ve put forward requests of approximately 100% tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola explained.
The telecommunications sector remains a crucial driver of Nigeria’s economic growth, with significant contributions to the GDP. However, rising operational costs have strained operators, prompting calls for adjustments to ensure continued investments in infrastructure and service delivery.
While Nigerians brace for an increase in telecom tariffs, Tijani’s assurance that the hike will not reach the proposed 100% provides a measure of relief. The final decision, to be guided by the NCC’s directives, aims to strike a balance between safeguarding consumer interests and maintaining the sector’s long-term viability.
