The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has confirmed that telecom tariffs will rise, but not by the 100% increase proposed by operators.
Tijani made the announcement during an interview with journalists on Wednesday, as shared in a video by Channels TV on X (formerly Twitter).
Telecom operators have proposed a 100% increase in tariffs, pending government approval, in response to rising operational costs, including inflation and higher service delivery expenses.
Speaking after a stakeholders’ meeting in Abuja, the minister stressed the importance of proper regulation to ensure sustainable growth in the telecommunications sector. He emphasized the need for a balanced approach that supports the industry while considering global inflationary pressures.
“The verdict is that tariffs will increase, but not by 100%. 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 explained.
He also outlined key initiatives under consideration, such as enforcing the executive order to protect telecommunications infrastructure and increasing local content within the industry. These initiatives aim to sustain the sector’s contribution to Nigeria’s economic development.
Tijani acknowledged telecom operators’ push for higher tariffs due to rising operational costs, noting that the government is working on strategies to mitigate the impact of the hikes on Nigerians.
“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, Engr Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, described the telecom sector as “under siege,” citing inflation, volatile exchange rates, and rising energy costs as major challenges. Despite these difficulties, tariffs have remained unchanged, leaving operators struggling to maintain service quality and expand their networks.
Adebayo warned that without tariff adjustments, operators may be forced to reduce services, limiting availability in certain areas.
Airtel Nigeria’s CEO, Dinesh Balsingh, explained that operational costs have surged by over 300% in the past 18 to 24 months, making tariff increases necessary for the telecom sector’s long-term sustainability.
“For over a decade, tariffs have remained static despite the dramatic rise in operating expenses. To continue providing high-quality services and meet the growing demand for digital connectivity, it’s essential to realign our pricing with the economic realities,” Balsingh emphasized.
