Telecom tariff increase should not exceed 60% – Minister

• Published On: 16 January 2025 at 19:59

Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, has urged the Nigerian Communications Commission to approve a maximum telecommunications tariff increase of 60%.

On Wednesday, Tijani rejected the telecom operators' request for a 100% increase, calling it unfeasible.

He went on to say that the government is implementing a variety of policies to relieve financial pressures on telecom operators while ensuring the industry's long-term viability.

After dismissing the 100% request, the Minister responded to a question about the likely percentage increment the NCC may approve by saying, "It shouldn't be more than anywhere between 30% and 60%."

Tijani acknowledged that telecom operators argue that a 100% tariff increase is necessary for their businesses' survival, but he emphasised that the government is committed to finding alternative solutions to ensure the industry's long-term viability without resorting to such a large increase.

"This is a sector that is responsible for driving our country's growth; allowing MNOs to increase by 100% will be detrimental to our people.

"But what we're doing now that people aren't paying attention to is asking difficult questions, such as, can we increase the local content in that sector?

"Can we reduce the amount of imports that are coming into that sector, which means they have to look for foreign exchange, which is more expensive?"

He also mentioned that the government has designated all telecom infrastructure as critical national infrastructure, which telecom operators have long argued for.

He explained that this decision was made after realising that vandalism of telecom equipment has a negative impact on service quality and forces operators to incur significant repair costs.

In the context of the ongoing tax reform, Tijani stated that the government is working to harmonise the various taxes that telecom operators must pay in order to create a more favourable environment for their growth and success.

Tijani also stated that the government is investing in telecom infrastructure to help alleviate some of the financial burdens that telecom operators currently bear.

"For example, we are investing in 90,000 kilometres of fibre. When we make the investment, these companies will be able to reach more people.

"If we're investing in towers in difficult-to-reach locations in rural areas, it will give them the opportunity to increase the pool of customers that they have without making that heavy investment," he told me.

MTN Nigeria's CEO, Mr Karl Toriola, recently expressed concern that the telecom industry is facing a sustainability threat that must be addressed through a tariff review.

He stated that telecom operators have requested a 100% increase in tariffs.

Toriola emphasised that telecommunications is both a fundamental human right and a key economic driver, but she also warned that without a sustainable industry, Nigeria's economy and citizens' well-being would suffer.