By Okafor Joseph Afam | January 8, 2024

The federal government has approved a tariff increase in the telecommunication sector, a move that will raise the cost of calls, data, and SMS for Nigerians. This decision comes as part of efforts to address sustainability challenges in the industry. However, the hike will be lower than the 100% increase initially proposed by service providers, with the government aiming to balance sector growth and consumer protection.

Government’s Position

Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, announced the decision during an industry stakeholder forum in Abuja on Wednesday.

“Tariff will go up. That’s the verdict. But it won’t be by 100%. We need to ensure that as a sector, we put the right regulations in place to ensure growth, create jobs, and enable other key sectors in the country as well,” Tijani stated.

He revealed that the government had commissioned a study to assess the financial requirements of the telecom industry while seeking to minimize the impact on consumers.

NCC’s Assurance

Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), assured Nigerians that the tariff adjustments would be accompanied by measures to increase transparency and simplify billing systems.

“We’ve revised our quality of service regulations, bringing the entire value chain into compliance—from mobile network operators (MNOs) to tower companies and transmission firms,” Maida explained.

He added that service providers would be required to use a simplified billing template, showing clear charges for voice calls, SMS, and data usage.

“We’re moving away from a regime where you have a main rate and a separate bonus rate, which confuses consumers,” Maida said.

Government and Private Sector Collaboration

The government has also pledged to invest in infrastructure to improve connectivity and ensure quality service across Nigeria. Maida emphasized that while the private sector had driven the telecom industry’s growth, government intervention was now necessary to accelerate development.

Implications for Consumers

The forthcoming tariff hike will impact millions of Nigerians who rely on telecommunications services for daily activities. Analysts believe the adjustment is a necessary step to sustain the sector, but they stress the need for measures to mitigate its effect on low-income earners.

As the new tariffs take effect in the coming weeks, stakeholders in the industry and consumers alike will be watching closely to gauge the balance between improved service delivery and affordability.