The Federal Government has signaled its intention to approve a tariff adjustment for telecommunications services, but has firmly rejected the 100% increase sought by telecom operators.
The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, revealed that the government is considering a more moderate increase, ranging between 30% and 60%, to balance the needs of the industry with the economic realities of Nigerians.
For some time, telecommunications companies have been lobbying for a significant hike in tariffs, citing rising operational costs, inflationary pressures, and the weakening naira as justification. They argued that a 100% increase is crucial for their financial stability and continued investment in network infrastructure. However, the government has expressed concern about the potential impact of such a steep increase on the general public.
Minister Tijani, speaking on Channels Television’s Politics Today, acknowledged the validity of some of the concerns raised by the telecom operators. He recognized the need for some level of tariff adjustment to ensure the sector’s sustainability and enable continued investment in infrastructure and service improvement.
“We have already made it clear that we are not going to approve 100%,” Tijani stated emphatically. “These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.”
He explained the government’s rationale for rejecting the full 100% increase, emphasizing the potential for economic hardship it could inflict on citizens. “But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNOs to increase by 100 per cent,” Tijani explained.
The Minister proposed a more measured approach, suggesting an increase of between 30% and 60% as a more acceptable compromise. This range, he suggested, would allow operators to address their financial challenges while mitigating the burden on consumers.
Tijani also clarified that the Nigerian Communications Commission (NCC), the industry regulator, is currently conducting a thorough evaluation of the proposed tariff adjustments. The NCC’s assessment will play a crucial role in determining the final figure. The final decision, pending the NCC’s review, will be a crucial test of this balancing act.