Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has voiced support for the recent 50% increase in telecom tariffs. Edun explained that the adjustment reflects the realities of inflation and is aimed at ensuring the sustainability of telecom companies’ operations.
The announcement of the tariff hike on Monday sparked mixed reactions across the country. While telecom companies argued that the increase should exceed 50%, labor unions and the National Association of Telecommunications Subscribers (NATCOMS) criticized the move, saying it disproportionately affects ordinary Nigerians.
Speaking during an interview with Arise TV on Thursday at the ongoing 2025 World Economic Forum in Davos, Switzerland, Edun defended the decision.
He stated, “Inflation has increased and it must be reflected in the business operations of telcos. While their prices are regulated, they cannot implement arbitrary tariffs,” he said.
“The rising cost of living must be considered, and I believe the 50 per cent tariff adjustment is just the starting point. It’s about compromise, timing and sequencing these necessary changes.
“Tariff rates have remained unchanged despite mounting pressures from inflation, exchange rate fluctuations, and the significant investments needed to meet rising consumer demand.
“These financial challenges have placed substantial strain on operators, threatening the long-term sustainability of the telecom sector, which is a vital contributor to Nigeria’s digital economy.”
According to him, it is expected that the telecoms firms would improve their services.
“The government expects the tariff adjustment to result in better call termination, fewer dropped calls and overall improved service quality,” he said.
“We want telcos operating efficiently, terminating calls seamlessly and delivering high-quality services. At the same time, we want them to foster innovation, create jobs and contribute to GDP.”
