The Minister of Communications, Innovation, and Digital Economy Bosun Tijani, has defended the federal government’s decision to approve a 50 percent tariff hike for telecommunications services in Nigeria, saying the move was crucial to prevent the potential closure of telecom companies and widespread job losses.
Tijani made the statement following a meeting with President Bola Tinubu and a delegation from Airtel, led by the company’s founder and chairman, Sunil Mittal, on Thursday. The tariff hike, approved by the Nigerian Communications Commission (NCC) on January 20, 2025, has sparked strong opposition, particularly from the Nigeria Labour Congress (NLC) and other consumer advocacy groups.
The Minister explained that telecom companies had been facing multiple challenges, including rising operational costs, inflation, and currency devaluation. Without the tariff increase, the sector would have faced severe financial strain, potentially leading to company closures and significant job losses, he warned. He also emphasized that nearly half a million Nigerians are employed in the telecom sector, highlighting the importance of maintaining financial stability in the industry.
Tijani assured that the government is committed to both protecting consumers and ensuring business viability, stating, “This government is extremely conscious of the state of the economy. The President carefully considers every citizen before making decisions.” He noted that a study, led by KPMG, had been conducted to determine an optimal increase that would ensure the sustainability of telecom companies without excessively burdening consumers.
He further clarified that the government’s approach focuses not only on affordability but also on the quality of service. The Nigerian Communications Commission (NCC) is shifting its focus from simply monitoring service quality to enhancing the overall quality of the consumer experience.
As part of the government’s long-term strategy, Tijani highlighted plans to improve nationwide connectivity, including investments in 90,000 kilometers of fiber-optic cables and the construction of 7,000 telecom towers in rural areas. He described this as a “journey” that requires cooperation between the private sector and government.
Airtel’s Sunil Mittal Supports Tariff Increase Amid Inflation and Rising Costs
Sunil Mittal, the founder and chairman of Airtel, which is one of the leading telecom operators in Nigeria, also spoke in favor of the tariff hike, attributing it to rising operational costs, inflation, and the devaluation of the naira. Mittal emphasized that the entire telecom network in Nigeria is imported, further exacerbating the challenges the industry faces.
Mittal acknowledged that the 50 percent tariff increase was necessary to cover the rising costs of diesel, electricity, rentals, salaries, and transportation, all of which have been impacted by inflation. He also pointed out that while the tariff increase was a crucial step, “more adjustments might be required in the future” to ensure the sustainability of the sector.
Mittal reiterated Airtel’s long-term commitment to Nigeria, stating that despite the difficult economic conditions, the company has continued to invest heavily in infrastructure to ensure high-quality service and expand its reach in the country.
The telecom industry is currently navigating significant economic headwinds, but both the Nigerian government and telecom operators have emphasized the need for balanced solutions that support business continuity while safeguarding consumer interests.
