Telecom Tariff Hike Should Be Capped at 60%, Says Minister

The Minister of Communications advocates for a maximum 60% cap on telecom tariff hikes, aiming to balance industry needs with consumer affordability amidst economic pressures.

Bosun Tijani, the Minister of Communications, Innovation and Digital Economy, has emphasized that the Federal Government will not permit telecom companies to double their tariffs.

For several years, telecom companies have been requesting a tariff increase due to factors such as rising operational costs, inflation, and the devaluation of the naira.

Tijani, appearing as a guest on Channels Television’s Politics Today last Wednesday, stated that while the government recognizes the necessity for a tariff increase in the telecom sector, it cannot approve the full 100 percent hike requested by companies.

When asked whether there is a specific percentage threshold for the upcoming tariff increase, the Minister responded, “I believe it should range between 30 and 60 percent.”

He stated that while the companies claim a 100 percent increase is necessary to stabilize the sector, the government understands that such an increase would be detrimental to the public.

We have already made it clear that we will not approve the full 100 percent. These companies are requesting this entire amount, explicitly stating their belief in its necessity.

Tijani stated, “Looking at this sector’s role in driving our country’s growth, allowing MNO to increase by 100 percent would be detrimental to our people.”

The Minister mentioned that the Nigerian Communications Commission (NCC) is still in the process of determining a specific figure for the tariff increase.

He believes it is essential to examine the numbers, consider how any increase will affect people, and assess the sector’s sustainability for appropriate balance.

Tijani stated that for mobile network operators to elevate their service to the desired standard, it is essential for them to continuously upgrade their equipment.

When Karl Toriola, the CEO of MTN Nigeria, appeared on Channels Television’s Sunrise Daily program on January 3rd, he revealed that telecom companies are in full agreement regarding the proposal for a 100% increase.

At MTN, we believe an adjustment of approximately 100% is necessary. It seems the industry largely agrees, as we’re all facing similar challenges. However, the government is quite aware of not further straining consumers’ budgets due to inflation and currency devaluation pressures.

“I’m uncertain if they will give us 100 percent, but I’m hopeful they’ll provide something substantial. Perhaps over the course of the year, we can make incremental adjustments that will help us get back to where we need to be,” Toriola said.

The CEO of MTN mentioned that nearly all sectors in the country, such as aviation and power, have raised their tariffs, with the exception being the telecoms industry.