The federal government will regularly review telecom tariffs to ensure fairness and sustainability in the sector, according to the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun.
In an interview on Arise TV at the ongoing 2025 World Economic Forum (WEF) in Davos, Switzerland, Edun explained that the government’s decision to approve a 50 percent tariff hike for telecommunication services would not be a permanent fix but rather a starting point in a series of necessary adjustments.
This announcement comes shortly after the Nigerian Communications Commission (NCC) approved the telecom tariff hike on Monday, which has sparked significant public debate and criticism. The decision to raise tariffs has drawn ire from various sectors of Nigerian society, particularly the Nigeria Labour Congress (NLC), which has called the move a “clear assault” on the welfare of Nigerian workers. The NLC also warned of a possible nationwide boycott of telecommunications services in protest.
Despite these reactions, Edun defended the hike, stressing that it was crucial to ensure the sustainability of the telecom sector, which has been grappling with rising operational costs and inflation. According to Edun, the telecommunications companies face high costs of operation, including the increasing cost of living in the country, and these factors must be reflected in the pricing structure.
“Inflation and rising costs have to be factored in for the telcos. There has been a high cost of living, and that has to be reflected in the tariffs,” Edun stated. “The 50 percent tariff adjustment is just a starting point. It’s about compromise, timing, and sequencing these necessary changes.”
The tariff hike is intended to strike a balance between ensuring that telecom operators can continue to provide services and remain profitable while also protecting consumers from excessive charges. Edun assured that the government would continue to monitor the situation and make necessary adjustments to keep the sector both efficient and fair.
According to Edun, the government’s goal is to foster a telecommunications sector that supports innovation, job creation, and economic growth. He added that the sector plays a crucial role in driving Nigeria’s overall economic development and in attracting investments. He also urged telecom operators to focus on improving the quality of services provided to Nigerians as part of their commitment to the price increase.
“We want telecoms to operate efficiently, with seamless call terminations, and high-quality services. At the same time, we want them to foster innovation, create jobs, and contribute to Nigeria’s GDP,” Edun said.
The minister further explained that the government is committed to making the necessary adjustments to support the sector and improve the country’s overall economic standing. As part of this, telecom tariffs will continue to be reviewed on a periodic basis, allowing for adjustments as needed based on changes in the economy and operational costs.
“The 50 percent tariff is a situation that will be looked at on a forward-looking basis,” Edun noted. “As we go forward, there will continue to be review, consultations, and discussions in this area.”
The recent approval by the NCC to raise tariffs has caused a stir, particularly as it comes at a time when Nigerians are already grappling with the effects of inflation and the high cost of living. Many Nigerians are concerned that the tariff hike will further strain their finances and make essential communication services more expensive.
The NLC’s reaction to the tariff hike reflects widespread discontent among the Nigerian public, as many workers and citizens feel that the government’s decision could add to their economic burdens. The NLC has called for unity among Nigerians to resist what they perceive as an unfair decision and has indicated that it may organize protests and mobilize support for a boycott of telecom services.
In response, Edun reiterated that the government’s priority is to support the long-term growth and development of Nigeria’s telecom sector, which has become increasingly vital to the nation’s economic activities. He emphasized that the sector must evolve and adapt to the changing economic landscape to continue serving the needs of Nigerians.
“The telecommunications sector is a major contributor to Nigeria’s economy, and it has to continue to thrive. The government’s goal is to improve the overall economy and attract investments across various sectors, and the telecoms sector is a key part of this strategy,” Edun explained.
The government’s approach, which includes periodic tariff reviews, aims to strike a balance between providing telecom operators with the necessary revenue to continue operations and ensuring that services remain accessible and affordable for Nigerian consumers.
While the 50 percent tariff increase may seem like a significant jump, Edun’s statement indicates that it is only the first step in a process that will be carefully monitored and adjusted as necessary. With the telecoms sector playing an increasingly critical role in Nigeria’s economic growth and job creation, the government is looking to ensure that it remains a vital part of the country’s future.
Edun’s comments also signal the government’s broader commitment to supporting the country’s infrastructure development, creating jobs, and fostering innovation. By periodically reviewing telecom tariffs, the government hopes to maintain a healthy balance that benefits both consumers and telecom operators, contributing to the overall well-being of the Nigerian economy.
The government’s stance is that while the tariff adjustment may initially cause some discomfort for consumers, it is necessary for the long-term health and sustainability of the telecom sector, which in turn is seen as crucial for Nigeria’s economic progress.
As the tariff hike is implemented, the public will be closely watching how telecom companies respond to the government’s calls for improved service quality and innovation. If the sector can deliver on these expectations while maintaining fair pricing, the government believes it will strengthen both the telecom industry and the broader Nigerian economy in the years to come.
