The Federal Government has defended its decision to approve a 50 percent tariff hike for telecommunications services, stating that the move is necessary to protect jobs and prevent multinational firms from exiting the country.
Minister of Communications and Digital Economy, Dr. Bosun Tijani, provided this clarification on Thursday after leading the management of Airtel Nigeria to a meeting with President Bola Tinubu at the Presidential Villa in Abuja.
According to Tijani, the decision was made in response to rising operational costs and inflationary pressures affecting telecom operators in Nigeria. He stressed that without the tariff adjustment, many companies could struggle to survive, leading to job losses.
“If we chose not to allow the increase in tariffs, we would be at risk of losing jobs, as some of these companies could shut down, and when you weigh that, it’s also not the best outcome for the economy,” he stated.
The minister highlighted the crucial role of the telecommunications sector in Nigeria’s economy, noting that it employs nearly half a million people across its value chain. He insisted that the government had carefully reviewed the implications of the price hike before granting approval.
He further explained that the request for a tariff increase had been pending before the current administration, but President Tinubu insisted on a thorough evaluation before making a final decision.
“This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike,” Tijani said.
To ensure the tariff adjustment was fair, the government commissioned a study led by KPMG, which provided insights into the most sustainable rate for telecom services.
Beyond affordability, the minister emphasized that the government is committed to ensuring “meaningful access” to telecommunications services. He explained that quality of service is just as important as pricing in providing value to Nigerians.
“The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority,” he added.
Tijani also pointed out ongoing government investments in telecom infrastructure to support economic growth and improve connectivity. He noted that projects such as expanding Nigeria’s fiber-optic network by 90,000 kilometers and constructing 7,000 additional telecom towers in rural areas were part of this effort.
Despite the government’s justification, the tariff increase has sparked backlash from labor unions and some political stakeholders. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have criticized the decision, accusing the government of failing to conduct adequate consultations before approving the hike.
In response, labor unions have threatened to mobilize their affiliate unions to boycott telecom services unless the government rescinds the decision. Some economic analysts have also warned that the price increase could worsen Nigeria’s inflation rate and place additional financial strain on citizens.
Peace OdekunleFebruary 27, 20252 Mins read
