Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that the government will not approve a 100% increase in telecom tariffs, despite operators’ demands. Speaking on Channels TV, Tijani emphasized that any tariff adjustment should remain between 30% and 60% to protect consumers and ensure industry sustainability.
“This sector drives growth in our country. Allowing a 100% hike would harm Nigerians,” Tijani stated. The minister highlighted ongoing government efforts to alleviate the financial strain on telecom operators while safeguarding the public from excessive costs.
Balancing Industry Needs with Consumer Protection
Telecom operators argue that skyrocketing operational costs, driven by inflation, foreign exchange devaluation, and surging diesel prices, necessitate a substantial tariff review. Diesel costs have soared from ₦230 pre-COVID to over ₦1,000 per liter, while the exchange rate has jumped from ₦424.50 to ₦1,550 in 2024.
Karl Toriola, CEO of MTN Nigeria, described the current situation as a “sustainability threat” for the sector. “Without a sustainable industry, the economy and Nigerians’ well-being will suffer,” Toriola warned, adding that costs for critical infrastructure have quadrupled in two years.
Government Interventions to Ease Operator Burdens
The government has declared all telecom infrastructure as critical national assets, a longstanding demand from operators. This move aims to curb vandalism, which has significantly impacted service quality and operational costs.
Additionally, the administration is investing in telecom infrastructure, including a 90,000-kilometer fiber optic expansion project and towers in rural areas. “This investment allows operators to reach more people without shouldering the full financial burden,” Tijani said.
To further support the sector, the government is harmonizing multiple taxes imposed on telecom companies. Tijani stressed that reducing reliance on costly imports and boosting local content would lower operators’ foreign exchange requirements.
Affordable Data vs. Economic Realities
Nigeria offers some of Africa’s lowest telecom tariffs, with 2GB of data priced at $2.35, compared to $7.98 in South Africa, according to the ITU. However, Nigeria also has the lowest GDP per capita among countries like Ghana, Kenya, and South Africa, raising concerns about consumers’ ability to afford even modest tariff increases.
While the Nigerian Communications Commission (NCC) has yet to announce the exact percentage hike, Tijani reassured Nigerians that any adjustment would be carefully calculated. “We are asking tough questions to ensure sustainability without placing undue hardship on citizens,” he said.
