Telecom: Tariff Hike Imminent but Not 100%, Says Minister
The Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, has disclosed that telecommunication tariffs will soon increase, though the hike will not be as high as the 100 per cent being proposed by operators.
Speaking after a stakeholders’ meeting with Mobile Network Operators in Abuja on Wednesday, Tijani said that consultations and engagements were ongoing.
He added that the Nigerian Communications Commission would approve the new tariffs and announce them to the public in due course.
“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting a 100 per cent tariff increase. But it will not be 100 per cent. We are still looking at that study and NCC will come up with a clear directive on how we will go about it.
“We want to strike the balance as a government to protect our people, but also protect and ensure that these companies can continue to invest significantly. We need to ensure that as a sector, we get our acts together, ensure that from the regulation side, we put the right regulations in place that can ensure the growth of this sector,” Tijani said.
The minister explained that the government was focused on striking a balance between protecting Nigerians and ensuring that telecommunications companies could continue to invest significantly in the sector.
He also stressed the need for proper regulations to guarantee sustainable growth.
Tijani further revealed that the Federal Government would no longer rely solely on private companies to invest in telecommunications infrastructure, as this approach had limited expansion to areas with immediate returns on investment.
He said efforts were being made to ensure that consumers benefit from meaningful connectivity and quality service, which require substantial investments.
“As a country, over time, we have left this investment in the hands of the private sector. They typically invest where they can see returns in the short to medium term.
“We will not want this conversation to just be about tariff increase. I think what the world is talking about today is meaningful connectivity.
“You want to have access to very good quality service. A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services,” he said.
The Executive Vice-Chairman of the NCC, Dr Aminu Maida, stated that while operators had requested a 100 per cent tariff increase, it was unlikely to be approved. He said the exact percentage would be announced within a week or two, following ongoing stakeholder consultations.
Maida also noted that the NCC had updated its quality-of-service regulations to improve transparency and compliance.
He said, “We have looked at all of these factors, and that is why, like the Minister said, it is not likely that we are going to approve a 100 per cent tariff increase.
“I know that Nigerians are agitated to hear the exact percentage approved. There are still some stakeholder engagements that we are going through, but you will hear from us within a week or two.”
He explained that operators would now be required to simplify their pricing templates, allowing consumers to clearly understand charges for voice calls, SMS, and data.
Speaking on behalf of Dinesh Balsingh, the CEO of Airtel Nigeria, Airtel media spokesperson Femi Adeniran said the proposed tariff adjustments were necessary to offset rising operational and capital costs.
He added that the adjustments were aimed at ensuring the long-term sustainability of the sector while delivering benefits to consumers.
“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.
“This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he said.
MTN Nigeria had revealed that telecommunications companies are seeking a 100 per cent tariff increase, but it remains uncertain whether the Nigerian Communications Commission—the telecom regulator, will approve the proposal.
The disclosure was made by the Chief Executive Officer of MTN Nigeria, Karl Toriola, who said that the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.
Also, Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, earlier said that the 300 per cent surge in operational cost in the last 18 to 24 months has made tariff adjustments necessary for the long-term sustainability of the telecom sector.
However, the National Association of Telecoms Subscribers has rejected the proposed increase in telecommunication tariffs, describing the plan as “insensitive” and a further burden on consumers already grappling with economic hardship.
NATCOMS President Adeolu Ogunbanjo also said the group plans to file a class-action lawsuit if the telecom operators proceed with the hike without first exploring alternative revenue-generating methods.
Ogunbanjo criticised the proposed 100 per cent tariff hike as excessive and unsustainable, urging the Nigerian Communications Commission to deny the operators’ request.
It was also gathered that the NCC had scheduled a crucial stakeholders’ meeting in Abuja for Thursday to discuss the proposed 100 per cent tariff hike in the telecom sector.
The meeting will bring together representatives from major consumer advocacy groups, telecom operators, regulatory bodies, and other relevant industry stakeholders to deliberate on the implications of the price increase.
President of the National Association of Telecommunications Subscribers, Adeolu Ogungbanjo, who has been a major critic of the proposal, confirmed the development on Wednesday.
“I had mentioned earlier that there is a need for the NCC to discuss and iron out the issue. But yesterday, I was invited for the meeting and it will be held on Thursday in Abuja at 2 pm,” Ogungbanjo stated.
The President of the Consumer Advocacy Foundation of Nigeria, Sola Ajulo, further confirmed the scheduled meeting during an appearance on Arise TV on Wednesday.
Ajulo emphasised that the discussions are critical for shaping the future of telecom pricing in the country.
“It’s crucial that all stakeholders are present and agree on the terms, as this will determine whether the government will approve a price increase and under what conditions,” she stated.
Ajulo noted that a price increase may be inevitable, given the economic challenges facing the sector. However, she stressed that it is essential to ensure that the terms of any increase are measured and conducive to the welfare of consumers, especially in light of Nigeria’s current economic difficulties.
“A 100 per cent or even a 40 per cent increase may be too steep. Easing the tariff increase with measurable conditions could be a more reasonable solution,” Ajulo suggested.
