FG Rejects Telcos' 100% Tariff Hike Proposal, Considers 30-60% Increase in Call, Data Rates
- The federal government of Nigeria has proposed that the incoming tariff hike will range between 30% and 60%
- This proposal, according to Minister Bosun Tijani, would keep the services affordable for Nigerians while allowing the Telcos to make more money to stay afloat
- Dr Tijani also assured Nigerians that there would be improved service delivery after the tariff hike takes effect
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The federal government has proposed raising telecom tariffs between 30% and 60% to maintain the stability of the vital telecommunications industry while keeping services affordable for Nigerians.
Dr. Bosun Tijani, the Minister of Communications and Digital Economy, revealed this during an interview on Channels Television yesterday. He noted that the government had received recommendations from independent consultants, including KPMG.
The Telecom operators had demanded a 100% tariff increase due to rising operational costs and inflationary pressures.
Source: Twitter
The minister, however, stated earlier that the government would not approve it. Tijani explained that the government was opting for a more moderate adjustment to balance consumer affordability with the sector's sustainability and growth, VANGUARD reports.
He stated that the telecommunications sector accounts for more than 16% of Nigeria’s GDP, plays a vital role in the digital economy, and employs thousands of Nigerians.
While ensuring the sector remains viable and sustainable, he noted that keeping services affordable for Nigerians was equally important.
Dr. Tijani stressed that the tariff review would focus on protecting consumer interests while ensuring the sector's long-term sustainability.
According to him, the process would be overseen by the Nigerian Communications Commission (NCC), and based on recommendations supported by data-driven analysis.
Addressing rural connectivity
Regarding investments in rural connectivity, Dr Tijani stated;
“The government is deploying 90,000 kilometers of fiber-optic networks and building telecom towers in remote regions through Special Purpose Vehicles, SPVs.”
Dr. Tijani highlighted Nigeria’s leadership’s role in strengthening global telecommunications infrastructure resilience, referencing recent measures taken to address submarine cable disruptions.
He also reiterated the government’s pledge to simplify taxation and classify telecom infrastructure as vital national assets.
Operators to ensure no service disruption
He assured Nigerians that post-tariff hike, they would experience improved service delivery, and where disruptions occurred, the telecom operators would be held accountable.
He said;
“We are committed to ensuring meaningful connectivity for all Nigerians—25 Mbps in urban areas and 10 Mbps in rural areas—while fostering a sustainable environment for private and public investments.”
Recall that the NCC, MTN and other Telcos had agreed that the proceeds from the tariff hike would be invested into infrastructure upgrades to improve service for Nigerians.
Tariff increase to happen in Q1 2025
In related news, Legit.ng reported that the Association of Telecommunication Companies of Nigeria (ATCON) recently appealed that tariff increase take effect in the first quarter of 2025.
According to ATCON President Tony Emoekpere, the decision to increase call and data tariffs was already coming quite late since there had been no hike for over a decade.
He then reasoned that there was no need to delay it any further; it should be implemented immediately.
Emoekpere also advocated a 100% tariff increase to compensate for the inflation that has increased Telcos' operations costs.
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Source: Legit.ng
