The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that telecom tariffs will increase, but not by the proposed 100% hike. Tijani made this disclosure during an interview with journalists on Wednesday, stating that the government is reviewing a commissioned study to determine the new tariff rates.
Telecom operators had submitted a proposal to the Nigerian Communications Commission (NCC) seeking a 100% increase in tariffs to address rising operational costs, including inflation and higher service delivery expenses. However, Tijani emphasized the need for a balanced approach to support the industry amidst global inflationary pressures.
“The verdict is that tariffs will increase, but not by 100%. We are still reviewing the commissioned study, and the NCC will issue directives to strike a balance,” Tijani said.
The minister also outlined key initiatives under consideration, including enforcing the executive order to safeguard telecommunications infrastructure and increasing local content in the industry. These measures aim to sustain the sector’s contributions to Nigeria’s economic development.
Tijani acknowledged the telecom operators’ push for substantial tariff adjustments, attributing it to rising operational costs. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr Gbenga Adebayo, had described the telecom sector as “under siege” due to soaring operational costs.
Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, stated that rising operational costs, which have surged by over 300% in the last 18 to 24 months, have made tariff adjustments necessary for the long-term sustainability of the telecom sector.
While the exact new tariff rates have not been announced, reports suggest that telecom tariffs could rise by up to 40%, with the cost of a phone call increasing from ₦11 to ₦15.40 per minute and SMS charges rising from ₦4 to ₦5.60.
