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FILE: Telecommunication signal
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that telecom tariffs will increase, though not by the 100 per cent being proposed by operators.
Tijani disclosed this during an interview with journalists on Wednesday, according to a video shared by Channels TV on X (formerly Twitter).
Telecom operators have proposed a 100 per cent increase in their tariffs, pending government approval.
The proposal, submitted to the Nigerian Communications Commission, seeks to address rising operational costs, including inflation and higher service delivery expenses.
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.
Recently, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr Gbenga Adebayo 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.
Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, stated that 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.
