The Nigerian government has defended its approval of a 50% increase in telecom tariffs, stating that the decision was necessary to prevent job losses and ensure the survival of telecom companies in the country.
The Minister of Communications and Digital Economy, Dr. Bosun Tijani, provided this explanation on Thursday after a meeting with President Bola Tinubu at the Presidential Villa in Abuja.
He noted that the tariff adjustment was a tough but necessary decision in light of rising operational costs and economic challenges.
“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,” Tijani said.
The minister pointed out that the telecom sector is a major employer in Nigeria, with nearly half a million people working across its value chain. He noted that the government had carefully reviewed the situation before making a final decision, considering both the interests of consumers and businesses.
Tijani also revealed that the request for a tariff increase had been on the table long before the current administration took office. However, President Tinubu insisted on a detailed evaluation before granting approval.
“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,” he said.
To determine the appropriate rate for the increase, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff adjustment.
The minister further noted that the government’s goal is not just affordability but also “meaningful access” to telecom services. This means ensuring that Nigerians not only have connectivity but also receive high-quality service.
“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,” Tijani stated.
To improve service quality, the government is investing in expanding telecom infrastructure. Tijani noted that the country’s fibre-optic network is being expanded by 90,000 kilometres, and 7,000 additional telecom towers have been approved for rural areas to enhance connectivity.
He also assured that while private sector investment remains vital in the telecom industry, the government is committed to ensuring universal access to high-quality connectivity. This approach, he noted, would bridge connectivity gaps and improve services nationwide.
Despite the government’s justification, labour unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have strongly opposed the tariff hike. They accused the government of failing to consult stakeholders before making the decision. The unions have even threatened to mobilise workers to boycott telecom services if the increase is not reversed.
