In a decisive intervention to safeguard jobs and maintain investor confidence, the Federal Government has approved a 50% increase in telecommunications tariffs. The move, according to the Minister of Communications and Digital Economy, Dr. Bosun Tijani, was necessary to prevent widespread job losses and keep multinational firms operating in Nigeria.
Speaking on Thursday after a high-level meeting at the Presidential Villa in Abuja, Tijani emphasized that the decision was not taken lightly. Instead, it was the result of extensive deliberations aimed at striking a balance between consumer affordability and the financial sustainability of telecom operators.
“If we chose not to allow the increase in tariffs, we would be at risk of losing jobs, as some of these companies could shut down, and when you weigh that, it’s also not the best outcome for the economy,” he explained.
The telecom sector, which employs nearly half a million Nigerians across its value chain, has been grappling with soaring operational costs driven by inflation and currency fluctuations. With major players in the industry warning of potential downsizing and exit from the market, the government saw no option but to intervene.
Tijani revealed that the request for a tariff adjustment had been on the table before the current administration took office. However, President Bola Tinubu insisted on a thorough review before making a final decision. To determine a fair and sustainable adjustment, the government commissioned an independent study by KPMG, which provided key insights into the necessary pricing model.
“This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike,” he noted.
Beyond affordability, the government’s strategy focuses on ensuring “meaningful access” to telecom services. Tijani stressed that while consumers will pay more, they should also expect improved service quality. The Nigerian Communications Commission (NCC) has been tasked with shifting its regulatory oversight beyond basic connectivity to prioritizing quality of experience.
“The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority,” he stated.
To complement the policy shift, the government is actively investing in expanding Nigeria’s telecom infrastructure. Tijani highlighted a plan to extend the country’s fibre-optic network by 90,000 kilometers, alongside the recent approval for the construction of 7,000 additional telecom towers in underserved rural areas.
He reiterated that while private investment remains crucial, the government will continue to intervene strategically to guarantee universal access to high-quality connectivity. With this collaborative approach, the administration aims to bridge digital divides, enhance service reliability, and ultimately create a stronger, more resilient telecommunications sector for Nigeria.
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