Telecom Tariff Increase Imminent, But Not 100% – Communications Minister

Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has disclosed that telecom tariffs will soon increase but assured Nigerians that it will not be as high as the 100% proposed by Mobile Network Operators (MNOs).

This was the outcome of a stakeholders’ meeting with MNOs and telecom service providers held  in Abuja, Nigeria.

The MNOs had proposed a 100% increase in their tariffs, pending government approval. The proposal, submitted to the Nigerian Communications Commission (NCC), was aimed at addressing rising operational costs, including inflation and increased expenses for service delivery.

It’s a New Year and we’re back on the grind!

Today, I welcomed consultants from KPMG Nigeria and SimmonsCooper Partners as they shared an interim report on the sustainability of Nigeria’s Telecoms Sector.

As a government, we are working to find a balance between the… pic.twitter.com/B0IKTpB9oU

— Dr. ‘Bosun Tijani (@bosuntijani) January 7, 2025

The Minister stated that consultations and engagements are ongoing and that the NCC will soon approve new tariffs.

Dr Tijani explained:

“You’ve seen over the past weeks that there’s been agitation from some of these companies to increase tariffs. They’re requesting a 100% tariff increase.

“But it won’t be 100%. And we’re still looking at that study, and NCC will come up with a clear directive on how we go about it, to strike the balance as a government to protect our people, but also ensure that these companies can continue to invest significantly.”

He underscored the importance of effective regulations and strategies to drive growth, create jobs, and support other key sectors in Nigeria:

“We need to ensure that, as a sector, we get our act together. Ensure that, from the regulation side, we put the right measures in place to ensure the growth of this sector, continue contributing to job creation, and also enable other key sectors in the country.”

Also Read: MTN Nigeria CEO Reveals 100% Tariff Increase Request

The Minister further stated that the Nigerian government recognises the need to accelerate investment in communication infrastructure, shifting away from sole reliance on private sector investments that prioritise short-term returns.

“As a country, over time, we’ve left this investment in the hands of the private sector. They typically invest where they can see returns in the short to medium term. But this government has recognised the need for us to accelerate investment in this infrastructure.”

Dr Tijani added:

“We wouldn’t want this conversation to just be about tariff increases. I think what the world is talking about today is meaningful connectivity.

“You want to have access to very good quality service. And part of it, which consumers may not be aware of, is the investment that needs to go into the infrastructure used to deliver these services.”

The Executive Vice-Chairman (EVC) of the NCC, Dr Aminu Maida, said the meeting with stakeholders focused on the sustainability of the industry.

“We have looked at all of these factors, and that is why, as the Minister said, it is not likely that we are going to approve a 100% tariff increase.

“I know that Nigerians are eager to hear the exact percentage approved. There are still some stakeholder engagements ongoing, but you will hear from us within a week or two.”

Dr Maida assured that the NCC had implemented tools and instruments by revising its quality-of-service regulations to ensure compliance with service quality standards. He noted that MNOs must now adhere to simplified templates showing Nigerians the charges per minute for voice calls, SMS, and a megabyte of data.

“We are moving away from the regime where you have a main rate and then a bonus rate, which is at a different rate. It often makes it complicated and difficult for Nigerians to understand what they are being charged for. One of the things we took time over the past year to address is the agitation that MNOs are ‘stealing’ our data.”

In response, Airtel Nigeria’s CEO, Dinesh Balsingh, represented by Femi Adeniran, the company’s media spokesperson, emphasised the need for tariff adjustments.

“The economic realities of rising operational and capital costs necessitate the proposed tariff adjustments to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers.”