The federal government of Nigeria has proposed a controversial increase in telecom tariffs, ranging between 30% to 60%, a move that has ignited intense debate about the future of the sector and its impact on consumers. The proposed hike, aimed at sustaining the critical telecommunications infrastructure and boosting the nation’s digital economy, was revealed by the Minister of Communications and Digital Economy, Dr. Bosun Tijani, in a recent interview on Channels Television.
As telecom companies clamour for a 100% increase to meet their operational costs, Dr. Tijani made it clear that the government is committed to balancing sector sustainability with consumer affordability. The minister’s comments have sparked reactions from various quarters, including telecom operators, consumers, and industry experts.
According to Dr. Tijani, the federal government’s decision to propose a 30-60% tariff hike is based on extensive consultations with independent consultants, including global firms like KPMG. When the minister was asked about a specific tariff threshold, he said, “I think it shouldn’t be more than 30 to 60 per cent.”
The aim is to provide a viable middle ground—one that supports telecom operators while also ensuring that Nigerians can still afford these essential services.
“We must remember that telecommunications in Nigeria contributes significantly to our economy, accounting for over 16% of the country’s Gross Domestic Product (GDP),” said Dr. Tijani during the interview. “It also provides jobs for thousands of Nigerians, and any move that threatens its viability could have far-reaching consequences.”
But critics argue that the proposed hike could burden the already stretched wallets of millions of Nigerians who depend on affordable communication for everything from business to education.
Telecom operators, who have been advocating for higher tariffs to offset rising operational costs, have largely welcomed the proposed increase, though many still consider it insufficient. At the heart of their demands is the need for increased infrastructure investment to meet the growing demand for reliable and widespread services across the country.
“The cost of doing business in Nigeria’s telecom sector is escalating due to rising energy prices, import duties, and the depreciation of the naira,” said Ikechukwu Obi, a spokesperson for the Association of Telecommunications Operators of Nigeria (ATCON). “Operators need a more substantial tariff adjustment to stay afloat and ensure that they can continue to deliver quality services.”
Obi, however, acknowledged the government’s efforts to balance the interests of both operators and consumers. “We understand that the government is trying to strike a fair balance, but the sector’s demands are urgent. Without proper tariff adjustments, the risk of service disruptions or infrastructure decay becomes real.”
A key aspect of the proposed tariff review is addressing Nigeria’s connectivity challenges in rural areas. According to Dr. Tijani, the government is committed to improving telecom infrastructure in underserved regions, with a focus on rural broadband access. The Nigerian government has plans to deploy an extensive 90,000 kilometers of fiber-optic networks to extend high-speed internet to remote areas, alongside the construction of new telecom towers through Special Purpose Vehicles (SPVs).
The minister highlighted the fact that rural connectivity remains a significant challenge, but the tariff adjustments could enable more investment in this area.
“Rural Nigerians often face the harshest challenges when it comes to accessing reliable telecommunications services,” Dr. Tijani noted. “The tariff hike is also tied to our strategic investments in rural connectivity, which will help bring the benefits of digital technology to every corner of Nigeria.”
In the northern region, where telecom infrastructure is notably sparse, some locals have expressed optimism about these initiatives. Amina Sulaimon, a resident of Katsina, explained, “Having internet access is more than just a luxury; it’s essential for accessing education, health services, and even government services. If the tariff increase means better service in our area, it could be a game-changer.”
The federal government’s efforts to improve Nigeria’s telecom infrastructure have not been limited to domestic investments. Dr. Tijani also discussed the country’s proactive role in managing disruptions to global submarine cables, which connect Nigeria to the broader international internet ecosystem.
In recent years, issues such as cable damage and piracy have caused intermittent internet service disruptions, leading to frustrations among both consumers and businesses. However, Dr. Tijani emphasized that the government is working to fortify Nigeria’s telecom infrastructure against such challenges.
“Nigeria has taken significant steps in ensuring that we remain resilient in the face of global disruptions,” he stated. “We have been working with global partners to manage cable damages and ensure continuity of services.”
Despite the proposed tariff increases, the government has assured Nigerians that it will hold telecom operators accountable for any service disruptions. Dr. Tijani stressed that the Ministry of Communications and Digital Economy, alongside the Nigerian Communications Commission (NCC), will implement measures to monitor and enforce better service delivery.
“We are aware of the frustration that many consumers face with poor network services,” the minister said. “As we move forward with the tariff review, we will be implementing stricter regulations to ensure that telecom companies improve their service quality, especially in urban and underserved areas.”
As the telecom sector evolves in Nigeria, the government faces a difficult task: how to ensure that the country remains competitive in the digital age while protecting the interests of the people. Dr. Tijani’s statement underscores the critical role telecommunications play in Nigeria’s economic growth and development. Yet, for many Nigerians, the question remains whether the proposed tariff hikes will strike the right balance or simply add to their already heavy financial burdens.
Whether the hike will lead to a transformation in the telecom sector, or whether it will deepen existing frustrations among users, remains to be seen. However, one thing is certain: the federal government’s decision on this matter will reverberate across the economy for years to come.