The controversial hike in telecom tariffs has sparked widespread backlash across Nigeria, with many Nigerians and organizations calling for an immediate reversal. However, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has staunchly defended the decision, claiming that it is in line with the broader economic trends of inflation and rising operational costs.
During an appearance before the House of Representatives Committee on Telecom and Digital Economy, Tijani provided context for the tariff increase, explaining that the telecommunications sector was grappling with several challenges. According to the Minister, the government is doing what it can to ensure that telecom infrastructure in Nigeria meets the demands of a growing economy.
“This tariff increase, while painful, is not isolated. It reflects the inflationary pressures facing many sectors of the economy,” Tijani said, citing the global economic climate that has been marked by rising prices across industries. “We must acknowledge that costs have escalated. The hike is a necessary measure to ensure the continued operation of telecom companies in Nigeria.”
Tijani’s defense comes at a time when the public’s frustration is mounting. Last week, the country’s telecom operators announced a 50% hike in call and data tariffs, citing operational constraints and inflation as the primary drivers behind the decision. Despite these claims, many Nigerians, especially those who rely on telecom services for everyday communication, are finding it increasingly difficult to absorb the additional costs.
Government’s Role in the Sector
The Minister did not only address the tariff increase but also outlined the government’s role in the broader telecommunications landscape. Tijani emphasized that Nigeria’s telecommunications infrastructure remains underdeveloped, particularly in rural areas. He revealed that the federal government is taking proactive steps to rectify this situation, with plans to invest a significant sum to improve connectivity nationwide.
“We have proposed an investment of N6 billion to deploy 90,000 kilometers of fibre optic cables. This will boost the country’s total capacity from 35,000 km to 125,000 km. This will not only improve the quality of telecom services but also provide Nigeria with an opportunity to become a regional leader in telecom services,” Tijani said.
He pointed out that Nigeria is trailing behind countries like South Africa, Egypt, and Tunisia in terms of fiber optic infrastructure and that the government is determined to close the gap. The proposed fiber optic project could serve as a vital tool in helping Nigeria become a hub for telecommunications services in West Africa.
“By increasing the scale of our fiber optic infrastructure, we aim to ensure that Nigerian companies can not only service the domestic market but also extend their services to neighboring countries,” he added. “This is part of our strategy to enhance national security through stronger telecommunications capabilities.”
Challenges in the Sector
Despite these ambitions, the Minister acknowledged the challenges facing telecom operators, particularly in terms of the high costs involved in infrastructure development. He noted that historically, private telecom companies have been reluctant to expand their operations beyond profitable urban centers, focusing primarily on areas with significant economic activity.
“This reliance on profitability has created gaps in rural areas where telecom services are either inadequate or entirely absent,” Tijani explained. “We must address this if we are to create a truly inclusive digital economy.”
He also touched on the ministry’s financial challenges, claiming that the lack of adequate funding has hindered the government’s ability to fully support telecom development. “The ministry is underfunded. Unlike the Nigerian Communications Commission (NCC), we do not have sufficient funds to track all users or ensure timely payments. If we had the necessary resources, we could generate more revenue and better manage the sector.”
Public and Organizational Backlash
The tariff hike has not been met with unanimous approval, however. Advocacy groups and industry stakeholders are calling for immediate action to reverse the decision. The Socio-Economic Rights and Accountability Project (SERAP) has already issued a 48-hour ultimatum to President Bola Tinubu, demanding that the hike be rescinded.
“This tariff increase is not only unjustified but unlawful,” declared SERAP’s spokesman in a press statement. “The government and telecom operators must reverse the hike immediately, or we will take legal action.”
The National Association of Telecoms Subscribers (NATCOMS) has also voiced its opposition, with its president, Deolu Ogunbanjo, expressing disappointment over the lack of consultation with subscribers before the decision was made. Ogunbanjo criticized the 50% hike as excessive and suggested a more moderate approach.
“Five to ten percent is a fair increase,” Ogunbanjo said. “But this 50% increase is outrageous, and it will hurt businesses, education, and ordinary Nigerians who depend on telecom services daily.”
NATCOMS has already announced its intention to take legal action against the Nigerian Communications Commission (NCC), arguing that the regulatory body failed to consult stakeholders adequately before approving the tariff hike.
“The telecom sector is crucial to Nigeria’s economy. From the banking industry to education, nearly every sector relies on telecom services to function effectively,” Ogunbanjo added. “A sudden increase of this magnitude will have far-reaching consequences.”
Public Concerns Over Accessibility and Affordability
The price hike comes at a time when many Nigerians are already grappling with the high cost of living. Critics argue that the increase will disproportionately impact the lower-income population, many of whom rely on affordable data and call services for daily communication. For businesses, the price increase is seen as an additional burden that could drive up operating costs and disrupt service delivery.
“It’s hard to keep up with these hikes,” said Ayodele Ibironke, a small business owner in Lagos. “My business relies on affordable data to connect with customers and clients. With the prices going up, I might have to scale down or even reconsider my business operations.”
