FG approves telecom tariff hike of up to 60% amid inflation concerns

In a significant development for Nigeria’s telecommunications industry, the Federal Government has approved a tariff hike for calls and data services by up to 60%.

The announcement was made by the Minister of Communications and Digital Economy, Bosun Tijani, during an interview on Channels Television’s Politics on Wednesday night, January 15, 2025.

The decision comes after extensive deliberations on the economic pressures facing the telecom sector, including inflation and the need for continuous infrastructure investment.

Minister Tijani emphasized that while telecommunication companies had sought a 100% increase in tariffs, the government opted for a more measured approach to balance the industry’s growth with the welfare of citizens.

Minister Tijani highlighted the vital role of the telecommunications sector in driving Nigeria’s economic growth, stating:

“The telecommunications sector is entirely about investment in infrastructure. Technologies are evolving rapidly, and companies need to keep investing to remain competitive. For example, older technologies like 3G will soon be phased out as newer technologies emerge. This requires significant capital.”

He also pointed to the impact of inflation on operational costs, noting that companies face mounting financial pressures to maintain and upgrade their networks.

READ ALSO: Telecom operators push for tariff hike amid surging operating costs

“We’re protecting both the telecom companies and Nigerians. Allowing a 100% tariff increase would have been detrimental to consumers. Instead, the government has capped the increase at 30% to 60% to ensure fairness,” he added.

Tijani underscored the importance of foreign direct investment (FDI) in the sector, revealing that telecom-related investments in the first quarter of 2024 amounted to $199 million, surpassing the entire inflow for 2023. He argued that such growth is essential for Nigeria’s aspiration to achieve a $1 trillion economy.

Economists and industry analysts have weighed in on the decision, praising the government’s balanced approach.

Dr. Adebayo Akinyele, an economist at the Nigerian Institute of Social and Economic Research, commented:

“This decision strikes a middle ground. It acknowledges the legitimate concerns of telecom operators while protecting consumers from excessive financial burdens.”

 “Maintaining competitive tariffs is crucial for sustaining Nigeria’s digital economy. However, continuous investment in infrastructure is non-negotiable if we aim to remain a key player in the global tech ecosystem.”

The Nigerian Communications Commission (NCC) is still finalizing the specifics of the tariff increase. According to Tijani, the commission is carefully analyzing the numbers to ensure the new rates align with economic realities while safeguarding the sector’s sustainability.

As Nigerians await further updates, the government has assured citizens that the approved increase will be implemented responsibly, considering its potential impact on everyday life and the broader economy.