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Minister of Communications, Innovation and Digital Economy, Bosun Tijani
The Minister of Communication, Innovation, and Digital Economy, Bosun Tijani disclosed on Tuesday that rising inflation and operational costs prompted the recent tariff increase approved for telecommunication companies operating in the country.
The Nigerian Communications Commission, the industry regulator, recently approved a 50% increase in current tariffs following a request from telecommunications operators.
It is worth recalling that the operators had initially sought a 100% tariff increase. However, the NCC settled on a 50% hike, citing ongoing industry reforms aimed at ensuring sustainability.
The National Association of Telecoms Subscribers, however, expressed strong opposition to the increase and threatened to sue the NCC over the decision.
While defending the ministry’s 2025 budget proposal before a joint House of Representatives and Senate Committee on Communication, Tijani stated that the tariff increase aligns with broader economic trends, where rising tariffs result in higher consumer prices due to additional costs on imported goods.
He further clarified that tariffs act as a sales tax, causing a one-off price hike rather than sustained inflation.
The minister also revealed that the Federal Government plans to invest N6 billion to deploy 90,000km of fibre optic cables, increasing the country’s capacity from 35,000km to 125,000km.
“Rising inflation and operational costs are the reasons for the recent tariff increase,” the minister said.
He also pointed out that, apart from South Africa, and possibly Egypt and Tunisia, many African countries face significant deficits in fibre optic infrastructure. “This is going to become a big business. We want Nigerian companies not only to lay cables within Nigeria but also to provide these services to neighbouring countries,” he said.
“We also want our people to become the employees who will execute this work. For instance, South Africa has leveraged its global businesses to achieve economic security. Nigeria must focus on similar opportunities to build a robust telecommunications infrastructure that guarantees national security,” he added.
The minister noted that historically, investments in telecommunications infrastructure had been left to private companies, which prioritise areas where they can make profits. “These companies rely on night-time satellite data to identify areas with active economic activities—indicated by the presence of lights—and invest only in those areas,” Tijani explained.
He lamented that the ministry is underfunded and lacks the necessary resources to discharge its responsibilities effectively.
“The ministry is underfunded. Unlike the NCC, we do not have sufficient funds to track all users of telecom services or ensure timely payments. We also lack the appropriate software to perform these functions efficiently. If adequately resourced, the ministry could generate significantly more revenue,” he said.
In his remarks, the co-chairman of the Senate Committee on Communication, Senator Shuaib Salisu, commended the communication sector’s contributions to the nation’s economic growth.
He stressed the need for a review of the ministry’s 2025 budget proposal to enable it to fulfil its mandate effectively.
The committee subsequently adopted a motion requesting the Committees on Appropriation to consider increasing the ministry’s 2025 budget allocation.
