The Federal Government, through the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the recent 50% tariff increase for telecom services, attributing the decision to mounting economic challenges.
This comes amidst widespread public backlash and legal threats from advocacy groups and subscribers.
Speaking on Tuesday during his appearance before lawmakers to defend the ministry’s budget, Tijani highlighted the pressing need for the adjustment.
“Rising inflation and operational costs are the reasons for the recent tariff increase,” the minister stated.
Tijani also underscored the private sector’s dominance in telecommunications infrastructure investment and its focus on economically viable areas, saying, “What most people don’t pay attention to is that historically, we’ve left investment in telecommunications infrastructure to private companies. These private companies will only go to where they can make money. They use a data set, called night-time satellite data, which looks down on the economy at night. They will see where light exists, and that’s where they will put their money. Because those lights, for them, indicate economic activities.”
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The Nigerian Communications Commission (NCC) approved the tariff adjustment on Monday, capping the increase at 50%, despite initial proposals from some operators seeking over 100%.
In a statement signed by its Director of Public Affairs, Reuben Muoka, the NCC clarified that this adjustment was the first since 2013 and was necessitated by rising operational costs in the telecom sector.
“The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of Indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem,” the statement read in part.
The tariff adjustment aims to address the rising operational costs faced by telecom operators while sustaining industry growth. However, it has sparked outrage among consumers and advocacy groups, with some threatening legal action.
Despite the criticism, Tijani reiterated the importance of balancing consumer needs with the industry’s long-term sustainability, calling for understanding amidst economic realities.