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Nigeria: Government Aims For Balance On Telecom Tariff Increase Amid Industry Demands

January 10, 2025
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Nigeria: Government Aims For Balance On Telecom Tariff Increase Amid Industry Demands

January 10, 2025
Reading Time: 2 mins read
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Minister of Communications, Innovation, and Digital Economy Dr Bosun Tijani has announced that telecom tariffs in Nigeria will soon increase, but not by the 100 per cent proposed by Mobile Network Operators (MNOs).

Following a stakeholders’ meeting with the MNOs in Abuja on Wednesday, Tijani confirmed that consultations and engagements are ongoing, and the Nigerian Communications Commission (NCC) will soon approve and announce the new tariffs to the public.

“Over the past weeks, you have seen that some of these companies have been agitated to increase tariffs. They are requesting a 100 per cent tariff increase. But it will not be by 100 percent; the NCC will soon come up with a clear directive on how we will go about it. We want to strike a balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly,” Tijani said.

He emphasized the importance of regulating the telecommunications sector to ensure its growth and sustainability. Tijani also stated that the Federal Government would no longer leave infrastructure investments solely to private companies, as they tend to invest only where they can see short- to medium-term returns.

“We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity, people want to have access to quality service. A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure used to deliver these services,” he added.

The Executive Vice-Chairman of the NCC, Dr Aminu Maida, explained that the stakeholder meeting focused on ensuring the industry’s sustainability. He confirmed that a 100 per cent tariff increase was unlikely and that ongoing discussions would determine the final percentage, with an official announcement expected within a week or two.

“I know that Nigerians are agitated to hear the exact percentage approved. We are still going through some stakeholder engagements, but you will hear from us within a week or two,” Maida said.

He also mentioned that the NCC had implemented several tools and instruments to ensure compliance with service quality standards and urged MNOs to adopt simpler pricing models to help consumers better understand charges.

“We are moving away from the regime where you will have a main rate, and then you will now have a bonus at a different rate. It makes it often complicated for Nigerians to understand what they are being charged for. There is this agitation that the MNOs are stealing our data,” he added.

The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Airtel’s media spokesperson Femi Adeniran, defended the proposed tariff adjustments, citing rising operational and capital costs.

“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments. This is aimed at ensuring the sector’s long-term sustainability while unlocking significant benefits for Nigerian consumers,” Balsingh stated.

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