The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has revealed that upcoming adjustments to telecom service tariffs may lead to a rise in the cost of calls, SMS, and data by 30 to 60 percent. This increase is notably lower than the 100 percent hike requested by telecom operators.
Speaking during a recent Channels TV interview, Tijani stressed that a 100 percent increase is unfeasible, stating, “The increment should be capped between 30 and 60 percent.”
If the upper limit of 60 percent is adopted, the cost of phone calls will climb from N11 to approximately N18.33 per minute, SMS rates will increase from N4 to N6.67, and the price of 1GB of data will rise from N287.50 to N479.17.
Balancing Industry Needs and Consumer Protection
Tijani highlighted the importance of finding a balance between the telecom industry’s sustainability and consumer affordability. He explained that while the telecommunications sector has been instrumental in driving economic growth, allowing a full 100 percent hike would severely impact Nigerians who rely heavily on these services.
“This sector is vital for our nation’s growth. Approving a 100 percent tariff increase would harm citizens and businesses alike,” Tijani noted.
Challenges Facing Telecom Operators
This announcement comes amidst a decade-long push by telecom operators for tariff adjustments. Rising operational costs, exacerbated by a 300 percent surge in expenses over recent years, have placed significant pressure on these companies. Additionally, the devaluation of the naira since 2023 has further strained their finances, prompting renewed calls for tariff reviews.
Karl Toriola, CEO of MTN Nigeria, acknowledged the sector’s struggles, noting that while telcos initially sought a 100 percent increase, the Nigerian Communications Commission (NCC) is unlikely to approve such a steep hike due to the economic climate.
“We remain hopeful that the NCC will consider the current realities and make a decision that ensures the long-term sustainability of the industry,” Toriola stated.
Looking Ahead
In December, Tijani acknowledged the necessity of adjusting tariffs to sustain the industry. The proposed increase, while not as high as requested by telecom operators, reflects an effort to address the sector’s financial challenges while minimizing the impact on consumers.
This decision underscores the government’s commitment to maintaining a robust telecom sector while ensuring that essential services remain accessible to the public.
