Bosun Tijani, the minister of Communications, Innovation and Digital Economy, stated these in his LinkedIn post on ‘telecom service quality’, in which the Federal Government acknowledged that Nigeria’s connectivity challenges were largely structural, driven by years of underinvestment in digital infrastructure and operational constraints affecting telecom operators.

Recall that the Nigerian Communications Commission (NCC), in March 2026, directed mobile network operators to compensate subscribers who experience poor network quality, marking a major shift towards consumer protection in the country’s telecommunications sector.

The Commission stated that subscribers should not bear the burden of service failures where operators fall short of prescribed Quality of Service (QoS) standards.

Under the new directive, telecom operators will be required to provide compensation directly to affected users for breaches of key performance indicators (KPIs).

Now, the Minister even said the government is tackling challenges faced by operators through both long-term infrastructure investments and immediate sector stabilisation reforms.

Tijani reiterated that the government has secured funding led by the World Bank and established a special purpose vehicle under Project BRIDGE to deliver nationwide open-access fibre infrastructure.

He also revealed that fibre deployment, alongside new telecom tower rollouts under the Nigerian Universal Communication Access Project (NUCAP), would commence before the end of the year, while satellite capabilities are also being expanded.

“These investments will address the foundational gaps in our digital infrastructure over the next two to five years and permanently transform connectivity across Nigeria,” the statement noted.

The Minister explained that the government’s target is to ensure that small businesses and households can access reliable high-speed fibre internet services instead of depending solely on unstable mobile connections and dongles.

On sector reforms, the government said it had taken difficult decisions aimed at restoring sustainability in the telecommunications industry.

These include tariff adjustments, recognition of telecom infrastructure as Critical National Infrastructure, tax harmonisation efforts, and broader macroeconomic reforms.

According to the statement, telecom operators are now operating in a more stable, transparent, and market-driven environment, with many returning to profitability.

Tijani stressed that operators including MTN Nigeria, Airtel Nigeria, Globacom and T2 now have both the capacity and resources to resolve persistent network issues and improve customer experience.

The Minister also reaffirmed the regulatory independence of the Nigerian Communications Commission, stating that the Commission has been fully empowered to monitor network performance, enforce service standards, and ensure compliance across the telecom industry.

He said the government would continue to rely on periodic reports from the NCC as well as feedback from Nigerians, including complaints shared across public platforms, to assess operators’ performance.

“Going forward, we expect to see clear and measurable improvements in call quality, data performance, and coverage,” the Minister stated.

He added that operators delivering quality service would be recognised, while those failing to meet expectations should expect regulatory sanctions from the Commission.

The statement comes amid growing consumer frustration over poor network quality, dropped calls, slow internet speeds, and inconsistent data services despite recent increases in telecom tariffs.

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, disclosed the figure during an interactive session with journalists in Lagos. 

He credited the capital inflow to a January policy that allowed mobile network operators (MNOs) to raise tariffs by up to 50%, a move that ended almost a decade of price stagnation.

“This act alone, has allowed investments to flow in. We will be revealing more specific figures in the coming weeks after verification, but we are talking about over a billion dollars’ worth of investment in 2025 alone,” Maida said.

Before the change, MNOs were locked into fixed pricing while other players in the telecom value chain, such as tower operators, could adjust their rates annually to account for inflation and currency depreciation. Maida said the imbalance eroded investor confidence and slowed network expansion, leaving service quality to deteriorate.

“This is an industry that requires continuous investment. The world is moving ahead, and if we do not create the right conditions, we will be left behind,” he warned.

The reform, which aligns with the 2000 Telecom Policy and the 2003 Communications Act, is already translating into tangible results. According to Maida, equipment that had not been purchased in years is now being ordered, with shipments arriving since June. Operators are actively rolling out upgrades and building new sites nationwide.

While the investment trend is positive, the sector faces operational challenges. Telecom operators consume more than 40 million litres of diesel each month, costing over $350 million annually, to keep base stations running.

“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” Maida noted, highlighting the industry’s total reliance on foreign exchange for network equipment, software, and hardware.

The NCC is also collaborating with the Rural Electrification Agency (REA) to deploy renewable energy solutions at telecom sites, reducing dependence on imported diesel and improving rural connectivity.

Infrastructure security is a priority. The NCC, working with the Office of the National Security Adviser (ONSA), is developing region-specific rapid response plans to address threats such as vandalism, fibre cuts, and generator theft.

Maida explained that strategies vary by location, coastal regions may need stronger community engagement, while high-risk zones require greater civil defence presence. The aim is to tackle both immediate security threats and structural issues that leave infrastructure exposed.

In addition, the regulator is tightening corporate governance standards for telecom operators. New requirements, set to take effect in the fourth quarter of 2025, include enhanced board oversight, stronger risk management frameworks, and regular compliance audits.

With Nigeria’s telecom sector currently valued at $9.52 billion and projected to more than double to $22.82 billion by 2029, the NCC believes these reforms will boost investments and keep the country competitive in the global digital economy.

The National Civil Society Council of Nigeria (NCSCN) suspended its decision during a press briefing in Abuja on Monday, marked a shift in the Council’s stance after extensive deliberations and a forensic review of the economic realities affecting telecom service providers.

Last week, the NCSCN convened an emergency meeting after news emerged that the Federal Government had approved a 50 per cent tariff hike for telecom operators.

The Council, alongside its 620 affiliate organisations, initially condemned the decision and planned a mass protest to occupy the headquarters of the NCC and the National Assembly until the government reversed the tariff adjustment.

Following its established protocols, the NCSCN formally notified the NCC of its intentions.

However, in what the Council described as an unprecedented display of responsiveness, the NCC reached out within 24 hours to initiate discussions.

In response, the NCSCN assembled an 11-man delegation for a four-hour meeting with NCC officials.

According to Blessing Akinlosotu, NCSCN executive director, the Council’s delegation initially approached the meeting prepared for a showdown, expecting to challenge the NCC on the tariff decision.

However, detailed presentations, economic assessments and operational data provided during the meeting led to a re-evaluation of the situation.

To ensure an objective assessment, the Council formed a five-man technical committee to conduct a forensic analysis of telecom service providers’ operational costs, financial statements and annual profit margins.

Akinlosotu said,

“After the tensed and robust engagement with the Management of NCC, we further set up a 5-man Technical Committee to carefully study documents presented to us, and asked the Committee to do a clinical and forensic examination of available records of operational costs and annual profits margins of some major Telecom Service Providers in Nigeria, with critical assessments of Financial Statements.

“Our findings were very interesting and call for a serious review of the position and planned line of action.”

The committee’s findings revealed that telecom operators had not increased tariffs since 2013 despite inflation and harsh economic conditions.

The cost of electricity and diesel has risen sharply, significantly impacting network operations.

Security challenges, particularly the vandalism of telecom infrastructure, have placed additional financial strain on service providers.

The devaluation of the naira and fluctuations in foreign exchange rates have also contributed to rising costs, making it more expensive to import telecom equipment.

While the approved 50 per cent tariff hike represents an upper limit, the Council noted that competition among service providers could prevent operators from implementing the maximum increase.

The NCC has mandated service quality improvements, requiring telecom providers to upgrade infrastructure to enhance network efficiency and ensure better service delivery.

The Council further established that, even with the adjustment, Nigeria’s telecom tariffs remain among the lowest globally, with the increase amounting to less than 10 kobo per second.

Following a review of these findings, the NCSCN acknowledged the economic pressures affecting both consumers and service providers.

Akinlosotu stated that while Nigerians are battling severe economic hardship, telecom companies are also struggling to maintain operations due to increasing costs.

He described the NCC’s position as a delicate balancing act between the interests of consumers and service providers, both of whom are dealing with the impact of inflation and an unstable business environment.

The NCSCN called on the NCC to ensure that telecom operators comply fully with the conditions tied to the tariff hike, particularly those requiring service quality improvements.

It also urged the regulator to strengthen monitoring mechanisms to prevent operators from unfairly imposing the maximum 50 per cent increase on consumers.

Telecom providers were advised to prioritise customer interests by keeping tariffs as low as possible despite the approved adjustment.

The Council also appealed to the Federal Government to declare a state of emergency in the energy sector, citing the high cost of electricity and fuel as major factors driving up telecom costs.

It further called on the government to implement policies aimed at strengthening the naira and stabilising foreign exchange rates to reduce the cost of doing business.

After reviewing the evidence, the NCSCN announced the cancellation of its planned protest, urging its members to shield their “swords for now, as we call off the planned Protest earlier scheduled to commence today Monday, January 3, 2025.

“Let us accept the painful and bitter realities being faced in the Operational Cost by Service Providers and allow for this understandable Tariff Adjustment.”

Akinlosotu called on the Nigerian Labour Congress to reconsider its position and recognise the operational challenges faced by telecom providers, warning that continued resistance to the tariff adjustment could push the sector towards collapse.

He further urged Nigerians to remain patient, acknowledging that the current administration inherited a struggling economy but expressing hope that conditions would gradually improve with the right policies.

“NCSCN equally appeals to our Big Brother, the Nigerian Labour Congress to review its position on this matter and find reasons to allow for this unavoidable Tariff Adjustment, to prevent systemic collapse of Telecom Services in Nigeria, seeing that most businesses are already folding up and leaving the Country owing to high Production Costs.

“We appeal to Nigerians to keep faith with the NCC Leadership as we in the NCSCN have seen relatively a very reasonable level of Patriotism and commitment to the well-being of the People, which is the reason the Tariff has been kept at a relatively low level, till date,” Akinlosotu said.

Acknowledging the financial limitations faced by operators, including high costs of operations, the FCCPC stressed that consumer interests remain non-negotiable. 

According to the Commission, the NCC’s decision to approve a 50% tariff adjustment—lower than the initial 100% proposed by operators—was a deliberate effort to balance industry sustainability with consumer protection.

The NCC has also mandated greater transparency in telecoms. Service providers are now required to present clear and straightforward tariff details, free of hidden charges, to help consumers make informed decisions. This includes disclosing costs, validity periods, and all plan inclusions in a standardised format.

The FCCPC noted the long-standing issues of consumers, such as dropped calls, network congestion, inconsistent internet speeds, and poor customer service, which it says must be resolved to justify the tariff increase. “Consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented,” the statement noted.

A recent Memorandum of Understanding (MoU) between the FCCPC and NCC reveals both parties’ focus on safeguarding consumer interests while promoting fair competition in the telecom sector. 

This partnership will oversee the implementation of the tariff adjustment to prevent exploitative practices and ensure that increased revenues are invested in infrastructure and service delivery improvements.

The FCCPC further stated that telecom operators must clearly communicate the reasons for the tariff adjustment and how it will enhance service quality. “It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.”

The Commission urged consumers to report any inadequacies through official channels for prompt resolution and assured the public that it would closely monitor the situation to ensure compliance with regulatory standards.

The group has given a 48-hour deadline, vowing to sue the parties involved if the hike is not rescinded within the stipulated time.

In a statement shared via its official social media platform, SERAP described the tariff increase as a violation of Nigerians’ rights to affordable communication. The group’s tweet read:

“The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours.”

The new tariff rates, approved by the Nigerian Communications Commission (NCC), are worrisome, particularly among small business owners and students who depend heavily on affordable telecom services for their daily activities.

Under the revised rates, the minimum cost for phone calls has risen from ₦6.40 to ₦9.60 per minute, while average call rates have jumped from ₦11 to ₦15.50 per minute. 

SMS charges are now ₦6 per message, up from ₦4. Data costs have also surged, with a gigabyte increasing from ₦350 to ₦525, placing further stress on consumers already struggling with inflation and high living costs.

The telecom tariffs adjustment is the first significant change since 2013. The NCC, in a statement signed by its Director of Public Affairs, Mr Reuben Muoka, justified the increase as a response to the high costs of operations faced by telecom operators.

The NCC explained that while some network operators had proposed a 100% hike, the approved adjustment was capped at 50% following consultations with stakeholders. It assured Nigerians that the decision aligns with its mandate to balance consumer protection with industry sustainability.

“The NCC recognises the financial pressures faced by households and businesses. These adjustments are necessary to support operators in maintaining quality services while investing in infrastructure and innovation, the statement noted.

SERAP, however, contends that the tariff increase was implemented without sufficient transparency or public consultation. The organisation says that such a decision, affecting millions of Nigerians, must comply with constitutional and legal provisions.

The group also noted the possible impact of the hike on small and medium-scale enterprises (SMEs), many of which rely on affordable telecom services to drive productivity and revenue.

The tariff increase comes even as economic challenges in Nigeria are not getting better, including inflation and subsidy removals. The decision will worsen the financial burden on citizens, particularly those in vulnerable economic positions.

The move, which has led to objections from various quarters, was authorised by the Nigerian Communications Commission (NCC) to address expensive costs of operations in the sector.

Deolu Ogunbanjo, president of NATCOMS, said the decision was made without adequate consultation with stakeholders. He described it as an unfair burden on Nigerians already facing economic difficulties. Speaking in Lagos, Ogunbanjo said, “This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs.”

While acknowledging the challenges faced by telecom operators, Ogunbanjo suggested a more moderate increase of 5% to 10% would have been sufficient. He also proposed alternative strategies for raising funds, such as Initial Public Offerings (IPOs), to reduce the financial burden on subscribers. 

“Operators can allow Nigerians to invest in their companies through IPOs rather than imposing such a steep tariff increase. A 50% hike is unacceptable,” he added.

NCC Defends Decision

In its defence, the NCC argued that the tariff adjustment was necessary to sustain the industry. According to a statement by its Director of Public Affairs, Dr Reuben Muoka, the commission approved the increase after extensive consultations with stakeholders. 

It noted that some operators had requested a 100% hike but the NCC capped the adjustment at 50% to strike a balance between industry sustainability and consumer protection.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity,” the NCC stated. 

The commission also emphasised the need for transparency, mandating operators to educate the public on the new rates and ensure measurable service improvements.

Mixed Reactions to the Increase

Subscriber groups and consumer advocates have condemned the hike. The Association of Cable TVs, Internet and Telecom Subscribers of Nigeria (ATCIS-Nigeria) described the increase as punitive and ill-timed, given the rising cost of living. 

ATCIS President Sina Bilesanmi accused the government of prioritising corporate interests over consumer welfare, saying, “This increase will further strain the finances of struggling Nigerians.”

Ogunbanjo reiterated a similar warning, stating that the hike could force many small businesses to shut down. He reaffirmed NATCOMS’ plan to file a fresh lawsuit to challenge the decision, describing it as a “provocative and disproportionate” measure.

On the other hand, industry stakeholders have defended the need for higher tariffs. The Association of Telecom Companies of Nigeria (ATCON) argued that the adjustment was overdue, given the high costs of operations and the long gap since the last tariff review.

ATCON President Tony Emoekpere noted that while the 100% hike requested by telecom operators might seem excessive, the 50% approval reflects current economic realities. “The delay in addressing tariff rates over the years made this adjustment inevitable,” he explained.

The tariff increase is expected to impact data, calls, and SMS charges, raising issues about affordability for many Nigerians.

While the NCC has assured that the adjustments will support better network quality and broader coverage, consumers are calling for greater transparency and fairness in implementing the new rates.

The Commission led by Dr. Aminu Maida, EVC/CEO of NCC, said the approval was in pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators

NCC said it “will be granting approval for tariff adjustment requests by Network Operators in response to prevailing market conditions.”

The adjustment, according to a statement by Reuben Muoka, the director, Public Affairs at NCC, said the tariff increase capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024. 

“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage. 

“Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors. 

“The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the Commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers. Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.

“Additionally, the NCC reaffirms its dedication to fostering a resilient, innovative, and inclusive telecommunications sector. Beyond protecting consumers, the Commission’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy. 

“As a regulator, the NCC will continue to engage with stakeholders to create a telecommunications environment that works for everyone—one that protects consumers, supports operators, and sustains the ecosystem that drives connectivity across the nation”.

However, the Minister the increase cannot be 100 per cent as proposed by operators.

Telcos Seek 100% tariff Increase

Recall that telecommunications companies (telcos) in Nigeria recently proposed a 100 per cent hike in their tariffs, pending approval from the government.

The proposal, which has been submitted to the Nigerian Communications Commission, aims to address rising operational costs, including inflation and increased service delivery expenses.

Mr. Karl Toriola, the chief executive officer, MTN Nigeria, disclosed this while appearing on Arise TV.

Just as the CEO expressed that it remains uncertain whether the Nigerian Communications Commission (NCC) —the telecom regulator, will approve the proposal, Tijani speaking during an interview with journalists on Wednesday, according to a video shared by Channels TV on X (formerly Twitter), said that the proposal, submitted to the NCC seeks to address rising operational costs, including inflation and higher service delivery expenses.

Government Accept Tariff increment …but not 100%

Speaking after a stakeholders’ meeting in Abuja, the minister highlighted the importance of proper regulations to ensure the telecommunications sector’s sustainable growth.

He emphasised the need for a balanced approach to support the industry amidst global inflationary pressures.

“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.

He outlined key initiatives under consideration, including enforcing the executive order to safeguard telecommunications infrastructure and increasing local content in the industry. These measures aim to sustain the sector’s contributions to Nigeria’s economic development.

Tijani also acknowledged telecom operators’ push for substantial tariff adjustments, attributing it to rising operational costs.

He noted that the government is working to mitigate the impact of tariff hikes on Nigerians through targeted measures.

“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 added.

Why Telcos are asking for tariff reviews

Engineer Gbenga Adebayo, the chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.

He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.

The telecom chief warned that without an immediate tariff adjustment, operators may resort to service shedding, leading to limited availability of telecom services in certain areas.

Similarly, Dinesh Balsingh, Airtel Nigeria’s chief executive officer, cited rising operational costs, which have surged by over 300 per cent in the last 18 to 24 months, have made tariff adjustments necessary for the long-term sustainability of the telecom sector.

According to Balsingh, the proposed tariff adjustments aim to ensure the sector’s sustainability while delivering significant benefits for Nigerian consumers.

“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 per cent in the last 18 to 24 months alone.

“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh emphasised.

Mr. Bolaji Balogun, the chief executive officer of Chapel Hill Denham, had also called on the industry regulatory to consider altered perspective around tariff to encourage investments.

Balogun said that reviewing the telecom tariffs has become inevitable due to the present business climate in the country.

He argued that 11 years since the tariffs were last reviewed, it makes economic and business sense to encourage investments in the sector that caters for not less than 14% of the nation’s GDP.

He further said that the federal government should lead the way towards localisation and domestication of certain operations and equipment in the sector.

The shift, he said, would become a critical driver for sustained economic growth, technological advancement and national development.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) noted that without a tariff review to align with high costs of operations, critical telecom services could be greatly affected. This could lead to limited or suspended services in certain regions across the country.

Engr. Gbenga Adebayo, chairman of ALTON, explained that the telecom sector’s survival is at risk due to high expenses, such as energy prices, inflation, and unstable exchange rates. 

Even with these financial limitations, telecommunications service providers have been unable to adjust their tariffs, as the Nigerian Communications Commission (NCC) regulates price changes.

Adebayo warned that if these issues are not addressed soon, Nigeria could experience adverse consequences. He referred to the possibility of “service shedding,” where telecom operators may be forced to limit services in certain areas or at specific times, disconnecting millions of Nigerians. 

This would lead to serious disruptions, especially in sectors like healthcare, education, and security, which heavily rely on telecommunications for their operations.

The ALTON Chairman stressed that while these challenges are not new, they have become severe over the past year. Operators are struggling to secure the financial resources needed to maintain and modernise telecom infrastructure, with unchanging tariffs compounding the problem.

Adebayo called on all stakeholders to immediately act to prevent the telecom sector from collapsing. He emphasised the urgency of the situation, noting that without reform, Nigeria’s telecommunications infrastructure could be at risk, which would have a negative impact on the economy and everyday life.

Nonetheless, Adebayo said that with the right reforms and collaborations, the telecom sector could recover in 2025. He urged the industry to work together to secure the sector and avoid the forthcoming disruptions.

This is due to the need to mitigate the challenging economic environment currently facing the sector.

The operators argue that an increase in tariffs is essential not only to halt ongoing revenue losses but also to stabilise the sector, ensuring its continued contribution to Nigeria’s gross domestic product (GDP).

This request, which comes just two months after their initial plea for a tariff adjustment, was made during a special event in Lagos organised by the Association of Telecommunications Companies of Nigeria (ATCON).

At the event, ATCON President Tony Izuagbe Emoekpere stressed the importance of cooperation between the telecom operators and the NCC.

Acknowledging the presence of the NCC’s Executive Vice-Chairman, Dr. Aminu Maina, Emoekpere emphasised that such gatherings are vital for facilitating dialogue and collaboration among key industry stakeholders.

Emoekpere reaffirmed ATCON’s mission to work closely with the NCC in addressing the industry’s challenges.

He highlighted ATCON’s longstanding role in driving the interests of telecom operators and facilitating constructive discussions with regulators.

“We pledge to continue to work with the Commission as we have done in the past,” Emoekpere said.

The telecom operators, including major players like MTN Nigeria and Glo, insist that increase in tariffs is essential for maintaining the sector’s growth in the face of economic downturns.

They believe that without this adjustment, the industry could struggle to sustain its current level of economic contribution and innovation.

During the event, Emoekpere pointed to the necessity of aligning regulatory policies with the economic realities facing the telecom sector.

He called on the NCC to consider the operators’ plight and approve the requested tariff adjustments to support the industry’s health and viability.