Why We Can’t Grant Telcos 100% Tariff Increase

The Nigerian government rejects a 100% telecom tariff increase.
Minister Bosun Tijani suggests a more realistic 30% to 60% hike.
MTN Nigeria CEO supports the 100% increase but acknowledges consumer concerns.

The Federal Government of Nigeria has firmly rejected a proposal to increase telecom tariffs by 100%, despite the growing operational costs faced by telecom service providers.

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, made this statement during an appearance on Channels Television’s Politics Today, following telecom operators’ calls for tariff adjustments due to inflation, naira devaluation, and rising operational expenses.

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EKO HOT BLOG reports that Tijani acknowledged the challenges telecom operators face and the need for a tariff review but emphasized that a 100% hike would be harmful to consumers. He stated, “We have made it clear that a 100% increase is off the table. While the companies argue this is essential for sector stability, we believe it would harm consumers.”

The Nigerian Communications Commission (NCC) is currently deliberating on a more balanced solution, with Tijani suggesting a potential adjustment range of 30% to 60%. The government is considering the need to support the telecom sector’s growth while mitigating the economic impact on the average Nigerian.

Tijani also reiterated the importance of maintaining affordable telecom services, especially given the sector’s critical role in Nigeria’s economic development. He stressed that telecom operators should continue investing in infrastructure upgrades to meet the increasing demands of consumers.

In a separate interview, MTN Nigeria’s CEO, Karl Toriola, revealed that telecom operators are united in their push for a 100% tariff increase. He explained, “We need an adjustment of about 100%, but the government is mindful of the economic pressures on consumers.” Toriola expressed optimism about the possibility of a phased tariff increase, which he believes would stabilize the sector over time.

Telcos 100% Tariff Increase

He pointed out that, unlike sectors such as aviation and power, the telecom industry has not implemented any tariff increases despite facing similar economic challenges. This ongoing debate over tariff adjustments highlights the balancing act between supporting industry growth and ensuring that services remain affordable for Nigerian consumers.