Federal Government, represented by Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has justified the recent 50% increase in telecom tariffs, citing economic pressures as the primary reason for the adjustment.
The decision has drawn significant public criticism and legal threats from consumer advocacy groups and subscribers. Addressing lawmakers during the ministry’s budget defense on Tuesday, Tijani emphasized the necessity of the tariff hike, attributing it to rising inflation and operational costs.
“Rising inflation and operational costs are the reasons for the recent tariff increase,” he said.
He also pointed out the reliance on private sector investments in telecommunications infrastructure, noting that these companies prioritize economically viable areas.
“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,” Tijani explained.
The Nigerian Communications Commission (NCC) approved the adjustment on Monday, limiting the increase to 50% despite some operators lobbying for over 100%. According to NCC’s Director of Public Affairs, Reuben Muoka, this marks the first tariff review since 2013 and was prompted by increasing operational costs.
In a statement, the NCC stressed its commitment to balancing consumer protection with the industry’s sustainability, highlighting the critical role of Indigenous vendors and suppliers in the telecom ecosystem. The commission described the adjustment as necessary for addressing cost challenges while supporting the sector’s growth.
“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 reads.
Although the move has been met with outrage and potential legal challenges, Tijani urged stakeholders to recognize the economic realities and the need for a sustainable telecom industry.
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