By Okafor Joseph Afam
January 16, 2025

The Federal Government of Nigeria has approved a tariff hike for calls and data services by telecommunication companies, allowing increases of up to 60%. This decision was announced by the Minister of Communications and Digital Economy, Bosun Tijani, during his appearance on Channels Television’s Politics Today on Wednesday night, January 15, 2025.

According to the Minister, the government recognized the need for a tariff review in the telecom sector due to ongoing economic pressures but declined the 100% hike initially requested by the operators.

Investment-Driven Sector

Highlighting the critical role of investments in the telecom industry, Tijani noted that the sector’s growth relies heavily on continuous infrastructure upgrades to keep pace with advancing technology.

“The telecommunications sector is about investment in infrastructure; the technologies are changing, so you have to keep investing in technology. Things like 3G will be decommissioned at some point because you have higher technology,” Tijani said.

He explained that telecom operators face rising costs due to inflation, making it necessary to balance protecting consumer interests with ensuring that companies remain competitive and sustainable.

Economic Contribution

Tijani revealed that foreign direct investment in the telecom sector reached nearly $199 million in the first quarter of 2024, surpassing the total inflows for 2023. He stressed the importance of sustaining this momentum for Nigeria to achieve its ambitious economic growth targets.

“We can’t get to a $1 trillion economy if mobile network operators are investing at a snail’s pace,” he stated, emphasizing the sector’s role in driving Nigeria’s economic transformation.

NCC’s Role in Determining Tariffs

The Nigerian Communications Commission (NCC) is still working to finalize the specifics of the tariff adjustments. Tijani assured Nigerians that the government would ensure the increase remains within reasonable limits to mitigate the impact on consumers.

“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 allowing MNOs to increase tariffs by that much would harm our people,” he said.

The government’s approach aims to strike a balance between safeguarding consumer interests and maintaining the viability of the telecom industry, which is pivotal to Nigeria’s economic development.

While Nigerians may face higher costs for calls and data in the coming months, the government’s decision reflects an effort to keep the telecom sector resilient and attractive to investors while considering the economic realities faced by citizens.