- Minister of Communications Bosun Tijani said telecommunications tariff will be increased but not by 100 per cent as proposed by operators
- Executive Vice-Chairman (EVC) of the NCC, Dr Aminu Maida, said the stakeholders’ meeting is to ensure the telecoms sector’s sustainability
- Telecoms operators said the proposed tariff hike is to address rising operational and capital costs
The Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijan, says the Nigerian Communications Commission (NCC) will soon come up with modalities for telecommunications tariff adjustments.
Tijani, however, noted that the increment that would be implemented would not be 100 per cent as requested by telecommunications operators.
He stated this during a stakeholder meeting with Mobile Network Operators (MNOs) on Wednesday, January 8, saying that consultations and engagements were ongoing on the issue.
The minister added that the NCC would approve the new tariffs and make them public to Nigerians very soon.
He said, “You have seen over the past weeks that some of these companies have been agitating to increase tariffs.
“They are requesting a 100 percent tariff increase. But it will not be 100 per cent. The NCC will soon come up with a clear directive on how we will go about it.
“We want to strike the balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly.”
Telecoms investment shouldn’t be left to the private sector
Tijani also stressed the need for a wider range of investors in telecommunications infrastructure, adding that the Federal Government would no longer leave such investments to private companies alone.
He said, “As a country, over time, we have left these investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term.
“We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity; people want to have access to quality service.
“A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services.”
Meeting for telecom sector sustainability
The Executive Vice-Chairman (EVC) of the NCC, Dr Aminu Maida, stressed that the meeting with stakeholders was about ensuring the industry’s sustainability.
He said that regulatory authorities have considered the factors in the industry and reiterated that it was unlikely that the NCC would approve a 100 per cent tariff hike.
Maida assured that the decisions and outcome of engagements with stakeholders will be communicated in the coming weeks.
He urged operators to adopt simplified templates to show Nigerians charges per minute for voice calls, SMS, and a megabyte of data.
Maida said, “We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate.
“It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for. There is this agitation that the MNOs are stealing our data.”
‘Proposed tariff hike to address rising operational costs’
The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Femi Adeniran, Airtel media spokesperson, said the proposed tariff hike is to address rising operational and capital costs brought about by the current economic reality.
Balsingh noted that the increment is to ensure the sustainability of the sector and for telecommunications companies to deliver superior connectivity and foster digital inclusion.
He said, “The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.
“This is aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers.”
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.
Proceeds from tariff hike will go into infrastructure upgrade, service quality – Telcos
Meanwhile, TheRadar earlier reported that telecommunications operators (telcos) in Nigeria said the proceeds from the proposed 100 per cent tariff increase will be channelled to upgrades of major network infrastructure and service quality.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, disclosed this in a column published in BusinessDay on Monday, January 6.
