Abuja — The Federal Government, through the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the recent 50% tariff hike on telecom services, amidst a wave of criticism, legal threats from advocacy groups, and dissatisfaction from subscribers.
Speaking during a budget defense session before lawmakers, Minister Tijani attributed the tariff adjustment to prevailing economic conditions, including inflation and the rising cost of imported goods, which have significantly impacted the operations of telecommunications companies.
“Rising inflation and operational costs are the reasons for the recent tariff increase,” Tijani explained. He added that the decision was necessary to ensure the sustainability of the telecom sector.
Private Investment and Infrastructure Gaps
Highlighting the structural challenges in the telecom industry, Tijani shed light on how private companies dominate telecommunications infrastructure investments. “Historically, we’ve left investment in telecommunications infrastructure to private companies. These companies decide where to invest based on economic indicators. They use a tool called night-time satellite data to determine areas with active economic activities, represented by lights visible at night. Investments are directed towards such areas, leaving underserved regions at a disadvantage,” he said.
The minister also reiterated the government’s commitment to bridging the digital divide through ongoing initiatives, such as the ambitious 90,000-kilometer fiber-optic project aimed at expanding broadband access nationwide.
Pushback from Advocacy Groups and Subscribers
The tariff hike has faced stiff resistance from subscribers and advocacy groups, with many describing the increase as burdensome and unjustifiable.
The National Association of Telecoms Subscribers (NATCOMS) and the Socio-Economic Rights and Accountability Project (SERAP) are leading the opposition.
NATCOMS President, Adeolu Ogunbanjo, expressed concerns over the hike, stating that while a modest increase of 5–10% might be acceptable, the approved 50% adjustment was excessive. Ogunbanjo disclosed that the association intends to engage the Nigerian Communications Commission (NCC) in discussions to seek a reversal. If this fails, NATCOMS plans to initiate legal action next week.
On its part, SERAP has issued a 48-hour ultimatum for the government and telecom operators to reverse the tariff hike. In a statement shared on its official X (formerly Twitter) account, the organization said, “The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours.”
NCC’s Perspective on the Tariff Adjustment
The Nigerian Communications Commission (NCC), which approved the tariff adjustment, has defended the move as a balanced response to the operational challenges faced by telecom operators.
In a statement signed by its Director of Public Affairs, Reuben Muoka, the NCC explained that the adjustment, capped at 50%, was significantly lower than the 100% increase initially proposed by some operators.
“This is the first adjustment to telecom tariffs since 2013. The decision was taken to address the rising financial pressures on network operators while ensuring that the interests of consumers are protected,” the statement read.
The NCC acknowledged the economic difficulties faced by Nigerians but emphasized the need to maintain the sustainability of the telecom industry, which supports thousands of Indigenous vendors and suppliers.
“The NCC remains empathetic to the impact of tariff adjustments on households and businesses. To this end, operators have been mandated to implement the changes transparently and fairly to minimize the burden on consumers,” the commission added.
Subscriber Concerns and Broader Implications
The tariff hike has sparked widespread frustration among Nigerians, particularly low-income earners who heavily depend on affordable telecom services for their daily activities. Many have expressed concerns over the rising cost of communication in the country, calling on the government to explore alternative solutions.
As debates continue over the necessity and fairness of the tariff adjustment, industry stakeholders and consumer groups are pushing for greater accountability and transparency in the implementation of telecom policies.
Conclusion
While the Federal Government and the NCC have justified the tariff hike as a critical step to ensure the sustainability of the telecom industry, the opposition from advocacy groups and subscribers highlights the need for inclusive stakeholder engagement. As legal battles loom, Nigerians will be closely watching how this situation unfolds and its broader implications for the country’s digital economy.
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