- The Minister of Communication, Bosun Tijani, has said telecommunications tariff hike shouldn’t exceed 60 per cent
- Tijani said a hike exceeding 60 per cent would be harmful to the citizens
- He said the NCC will announce the new tariff hike percentage soon
The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, says the proposed telecommunications tariff hike should not exceed 60 per cent.
The minister stated this while appearing as a guest on a Channels Television programme on Wednesday, January 15, reiterating that the Federal Government would not allow telecom companies to increase tariffs by 100 per cent.
Tijani said the government acknowledged that a tariff increase in the telecom sector is due, but said the government cannot grant a 100 per cent hike as demanded by telecom operators.
He stressed that though telcos insist a 100 per cent hike is needed to stabilise the sector and ensure improved service, such an increase would be harmful to citizens.
Tijani said the hike “should not be more than anywhere between 30 to 60 per cent.
“We have already made it clear that we are not going to approve 100 per cent. These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.
“But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100 per cent,” the minister said.
NCC to announce new tariff rate soon
Tijani also noted that the Nigerian Communications Commission (NCC) is still working on the tariff increase and is yet to arrive at a particular figure.
He said the new rate will be announced soon by the NCC.
The minister stressed the need to thoroughly consider the numbers, the implication any increase will have on the people, and the sustainability of the sector for adequate balancing.
He added that there is the need for telcos to keep improving their equipment to improve their services, which is why telcos said the revenue from the proposed tariff hike will be channelled to infrastructure upgrades.
Telcos’ journey to 100 per cent tariff hike
Telecommunications operators in Nigeria have been confronted by challenges ranging from currency devaluation, high energy costs, and inflationary pressures, which have impacted their operational costs and led to losses.
To mitigate the impact of these challenges, telco operators pushed for tariff hikes by up to 100 per cent, which was reported to take effect from January 2025.
Although the NCC earlier denied such plans, saying they were untrue, telcos continue to maintain their stance, warning of imminent shutdown if tariffs are not hiked as many now operate on their reserves, which is not sustainable over time.
The planned tariff hike hasn’t gone down well with subscribers, who say a hike in the cost of services such as voice calls, SMS, and data bundles will further exacerbate the current financial strain faced by Nigerians.
Subscribers have threatened legal action should the NCC approve the 100 per cent hike in tariff.
Explore capital market funding, not 100% tariff hike, subscribers urge telcos
Meanwhile, TheRadar earlier reported that telecommunications operators were urged to explore capital market funding as a sustainable option to address rising operational costs rather than implementing a proposed 100 per cent tariff hike.
President of the National Association of Telecommunications Subscribers (NATCOMS), Adeolu Ogunbanjo, said the proposed tariff hike would impose financial strain on consumers.
