Bosun Tijani (Dr.), the Minister of Communications, Innovation, and Digital Economy, has said that the Federal Government is considering the proposal for telecom tariffs increase.
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.
