Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, has confirmed that the Federal Government is considering a proposal for an increase in telecommunications tariffs. However, he clarified that the hike will not be as high as the 100% proposed by telecom operators.
Speaking to journalists on Wednesday, in a video shared by Channels TV on X (formerly Twitter), Tijani explained that the tariff adjustment proposal submitted to the Nigerian Communications Commission (NCC) by telecommunications companies (telcos) is aimed at addressing rising operational costs driven by inflation and higher service delivery expenses.
Telecommunications operators, including MTN and Airtel, have recently urged the government to approve a 100% hike in tariffs, citing escalating costs of operations, volatile exchange rates, and rising energy prices. MTN Nigeria’s CEO, Mr. Karl Toriola, while appearing on Arise TV, expressed concerns about the sustainability of the current tariff structure and said the proposal is under review by the NCC.
Similarly, Airtel Nigeria CEO, Mr. Dinesh Balsingh, highlighted that operating expenses have surged by over 300% in the past 18 to 24 months, while tariffs have remained static for over a decade.
“For the telecom sector to maintain quality services and expand digital connectivity, aligning tariffs with current economic realities has become essential,” Balsingh stated.
Following a stakeholders’ meeting in Abuja, Minister Tijani emphasized the government’s commitment to balancing industry sustainability and consumer protection.
“The verdict is that tariffs will increase, but not by 100%. We are still reviewing the commissioned study, and the NCC will issue directives to strike a balance. This is about protecting Nigerians while ensuring telecom companies can continue to invest significantly,” Tijani said.
He added that the government is implementing measures to cushion the impact of tariff hikes on Nigerians, including enforcing an executive order to safeguard telecom infrastructure and promoting local content in the sector.
Engineer Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as “under siege,” citing inflation and other economic challenges that have stretched operators to the brink.
He warned that without timely tariff adjustments, service shedding could occur, limiting telecom access in some areas.
Chapel Hill Denham CEO, Mr. Bolaji Balogun, also called for an urgent review of tariffs, emphasizing that the sector, which contributes over 14% to Nigeria’s GDP, requires significant investment to sustain growth and innovation. He urged the government to champion the domestication of telecom operations and equipment to reduce costs and drive economic advancement.
Minister Tijani reiterated the government’s resolve to mitigate the effects of tariff adjustments while ensuring the telecom sector remains a driver of economic growth.
“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 assured.
As discussions continue, stakeholders and consumers await the NCC’s final decision, which is expected to shape the future of Nigeria’s telecommunications industry.
