Nigeria’s telecommunications sector is set for a tariff increase, as the Federal Government confirmed that mobile network operators (MNOs) will soon implement new pricing. However, the increase will not match the 100 percent hike initially proposed by the operators. This announcement was made by Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, after a key meeting with MNO representatives in Abuja on Wednesday, January 8, 2025.
Tijani, speaking after the meeting, clarified that consultations and engagements with the MNOs were ongoing, and the Nigerian Communications Commission (NCC) would soon unveil the final tariff structure. He noted that while the MNOs had requested a 100 percent increase in telecom tariffs, the government would ensure a more balanced approach. “You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting for 100 percent tariff increase. But it will not be by 100 percent; the NCC will soon come up with a clear directive on how we will go about it,” Tijani said. He added that the government’s goal was to strike a balance that protected consumers while ensuring telecom companies could continue to invest in infrastructure.
The announcement follows weeks of speculation and public concern, as telecom operators have been vocal about the need for higher tariffs due to the rising cost of operations in the country. According to Tijani, the government’s primary objective is to protect consumers while simultaneously ensuring that telecom companies have the financial ability to invest in the infrastructure necessary to maintain service quality and expand coverage. “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,” Tijani emphasized.
Tijani also stressed the importance of focusing on the broader issue of infrastructure investment, beyond just tariff hikes. “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,” he explained. His comments suggest that the government is keen on ensuring long-term growth in the sector, rather than short-term fixes.
Dr. Aminu Maida, the Executive Vice-Chairman of the NCC, also addressed the media following the meeting, confirming that while the tariff increase would take place, it would not be as steep as the 100 percent hike initially requested by the MNOs. He noted that the final percentage increase would be determined after ongoing discussions with industry stakeholders. “I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” Maida stated, assuring the public that the decision would be communicated soon.
Maida also emphasized that the NCC was taking steps to ensure service quality standards were maintained, despite the upcoming tariff adjustments. He pointed out that the commission had already implemented various tools and frameworks to ensure compliance from the telecom companies. “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,” Maida explained. He also acknowledged concerns among consumers that telecom operators might be exploiting them, particularly regarding data charges.
The issue of data charges has been a major point of contention between consumers and telecom companies in recent years. Maida’s comments suggest that the NCC intends to introduce clearer pricing models to help consumers better understand the cost structures and avoid confusion. “There is this agitation that the MNOs are stealing our data,” he added, recognizing the widespread frustration among Nigerians who feel they are being overcharged or misled by telecom providers.
Dinesh Balsingh, the CEO of Airtel Nigeria, represented by the company’s media spokesperson Femi Adeniran, responded to the criticism of the proposed tariff hikes by defending the necessity of the adjustments. According to Balsingh, the increase in tariffs was a direct result of rising operational and capital costs, which had become unsustainable for telecom companies. “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,” Balsingh explained.
