The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that telecom tariffs will rise but not by the 100 per cent proposed by telecom operators.
Speaking with journalists on Wednesday in Abuja, Tijani explained that the increase was necessary to support the sector’s sustainability amid rising operational costs. He said the Nigerian Communications Commission is reviewing a study to determine the appropriate adjustments.
“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,” Tijani said.
Telecom operators have proposed a 100 per cent hike in tariffs, citing inflation, volatile exchange rates, and increased energy costs. Engr Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, described the telecom sector as “under siege.”
“Operational costs have soared, but tariffs have remained static. Without an immediate adjustment, operators may resort to service shedding, which will reduce telecom service availability in some areas,” Adebayo warned.
Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, highlighted that operating expenses have surged by over 300 per cent in the last 18 to 24 months. He explained that a tariff adjustment is critical to maintaining quality services and meeting growing demands.
“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses. To continue providing high-quality services and meet the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh said.
Tijani assured Nigerians that the government is considering measures to mitigate the impact of the tariff increase on citizens.
“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,” he said.
The minister also noted plans to enforce the executive order to safeguard telecommunications infrastructure and promote local content in the industry.
The proposed tariff increase is still under review, and the NCC is expected to release its directives soon.
Meanwhile, stakeholders in the industry continue to call for urgent solutions to ensure the long-term sustainability of the sector while protecting consumers from undue financial burdens.
