Dr. Bosun Tijani, the Minister for Communication and Digital Economy, defended the controversial 50 per cent tariff increase for telecom companies, explaining that the decision would guarantee Nigerians meaningful access to telecommunication services. He made this comment during a briefing with State House Correspondents on Thursday.
Tijani, who was accompanied by Mr. Sunil Mittal, the Chairman of Bharti Airtel, and other senior members of the company’s executive team, was at the Presidential Villa in Abuja for a meeting with President Bola Tinubu. The discussions focused on the telecommunications industry, which plays a vital role in Nigeria’s economy.
The minister explained that the increase in telecom tariffs was a tough but necessary decision aimed at balancing the sustainability of telecom companies and ensuring that Nigerians have access to quality telecom services. He pointed out that the sector provides jobs for nearly half a million people across the country, including in the value chain.
“We have to ensure that when they invest, we can keep them afloat,” Tijani said. “This is a sector that employs close to half a million people in this country, including the value chain. We must also make sure that Nigerians can access the services they need in a meaningful way.”
The 50 per cent increase in telecom tariffs, which has sparked concerns among some Nigerians, was not made lightly. Dr. Tijani explained that the Federal Government had engaged KPMG, a leading international consulting firm, to carry out a study to determine the optimal tariff allowance for the sector. The study, he said, led to the decision to raise tariffs.
“We had to strike a difficult balance,” the minister said. “We needed to ensure that telecom companies could remain sustainable and continue to invest in the country. At the same time, we also needed to ensure that all Nigerians could access these services. If we had not allowed the increase in tariffs, we risked losing jobs and possibly having some companies shut down. That would not be good for the economy.”
Tijani highlighted that the goal of the government was not just to provide access to telecommunications services but to ensure that the services were of high quality. “The priority for this government is meaningful access. We don’t just want our people to have access to telecom services. We want that access to be meaningful and of high quality,” he said.
He went on to explain the government’s ongoing efforts to improve telecom infrastructure in the country. Tijani highlighted the Federal Government’s investment in the expansion of fibre-optic networks, which has already seen 90,000 kilometres of fibre laid across the country. He also mentioned the approval of an investment in 7,000 additional telecom towers in rural areas, aimed at improving connectivity in underserved regions.
“The quality of access and connectivity requires significant investment,” Tijani said. “The government is committed to encouraging private sector investment to continue to improve the infrastructure. The private sector plays a crucial role in driving the expansion and quality of telecom services.”
While some Nigerians have raised concerns over the potential impact of the tariff increase on their monthly bills, Tijani reassured the public that the government was focused on ensuring that telecom companies provide high-quality services. He explained that telecom firms need to make significant investments in infrastructure to maintain and improve service quality across the country.
The tariff increase is part of the government’s broader strategy to support the telecommunications industry’s growth while addressing challenges such as poor network coverage in rural areas, unreliable service quality, and a lack of infrastructure. The increased tariffs are expected to help companies invest in expanding network coverage, improving service quality, and boosting connectivity.
During the briefing, Mr. Sunil Mittal, Chairman of Bharti Airtel, also spoke about the importance of Nigeria to his company’s operations in Africa. He described Nigeria as the “soul” of Airtel’s business on the continent, highlighting the country’s potential to match India’s progress in digital innovation, connectivity, and financial inclusion.
“Nigeria is the most important part of our Africa strategy,” Mittal said. “In fact, the entire Africa rests on the back of Nigeria for Airtel. We believe that the success of Airtel in Nigeria is crucial to our overall success in Africa.”
Despite this growth, the sector faces several challenges. Poor network coverage in rural areas, inconsistent service quality, and inadequate infrastructure have hindered the potential of telecom services. Additionally, the economic pressures of rising operational costs, including fuel and electricity, have made it difficult for telecom companies to maintain affordable services while investing in expansion.
