Minister addresses telecom tariff hike, unveils plan for digital economy growth

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has announced the ministry’s intervention in ongoing discussions regarding a potential telecom tariff hike, emphasizing the need to protect Nigerians while ensuring businesses remain viable.

Speaking during an interview on Arise TV, Dr. Tijani outlined the government’s strategy to balance affordability, service quality, and digital economy growth.

Responding to criticism that tariff adjustments fall under the purview of the Nigerian Communications Commission (NCC), Dr. Tijani clarified that the ministry supervises the NCC and is responsible for safeguarding public interests.

He reiterated that the ministry’s intervention aims to prevent excessive tariff hikes while supporting businesses.

“Connectivity is now critical to the survival of every Nigerian,” Tijani said. “This ministry plays a significant role in ensuring our digital economy thrives. It’s not just about businesses making money but ensuring our people have meaningful access to what has become a critical service.”

The minister revealed that any tariff increment approved by the NCC would be capped at 60% to ensure fairness and affordability.

Beyond tariff regulation, the ministry is prioritizing improvements in service quality and customer experience.

Dr. Tijani noted, “It’s not just about service quality but whether customers are getting the experience they pay for. Are customer service standards being met? Are stakeholders in the value chain delivering as they should?”

He emphasized that reliable internet access is vital for Nigerians, enabling them to access information, jobs, and opportunities.

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Many young Nigerians, he added, are leveraging the digital economy for content creation, skill development, and business growth in areas such as entertainment, photography, and graphic design.

Recognizing the limitations of private sector investment, the government is making significant investments to expand Nigeria’s digital infrastructure. Dr. Tijani highlighted the government’s plan to build an additional 90,000 kilometers of fiber optic cables to complement the existing 35,000 kilometers.

“Our goal is to ensure nearly all Nigerians have access to quality internet, with speeds of at least 25 Mbps in urban areas and 10 Mbps in rural areas,” he stated.

In May 2024, the Federal Executive Council approved a Special Purpose Vehicle (SPV) to deliver this ambitious fiber optic expansion project.

The initiative is expected to increase internet penetration to over 70%, reduce internet access costs by 60%, and bridge the digital divide for at least 50% of the 33 million Nigerians currently excluded from internet access.

Dr. Tijani noted that the project could contribute up to 1.5% of GDP growth per capita, potentially raising Nigeria’s GDP from $472.6 billion in 2022 to $502 billion by 2028.

“A robust digital economy backed by the right infrastructure will create jobs, foster innovation, and drive sustainable economic growth,” he said.

Telecom analyst Dr. Funmi Oladipo commended the government’s proactive approach, stating, “Investing in infrastructure is key to achieving universal internet access. However, ensuring affordability alongside quality is essential for inclusive growth.”

Economist Ifeanyi Eze emphasized the broader implications, saying, “The planned fiber optic expansion and improved connectivity can transform Nigeria’s economy, particularly in underserved regions. It will spur innovation and digital inclusion, critical for long-term development.”

Dr. Tijani concluded by reiterating the government’s commitment to balancing the interests of Nigerians and telecom operators.

“The future of Nigeria’s digital economy depends on robust infrastructure, fair pricing, and quality service. We are determined to deliver on all fronts,” he said.