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Telecom Tariff Hike Likely as Tinubu Administration Approves Increase

Monday Yakubu by Monday Yakubu
January 9, 2025
in Technology
0

Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani / Telecoms merged logos

The Nigerian government has approved an increase in telecom tariffs, signaling changes in call, SMS, and data costs for millions of Nigerians. However, the hike will not be the 100% increase initially proposed by telecom operators, according to the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani.

Tijani made this announcement on Wednesday during a stakeholders’ meeting with Mobile Network Operators (MNOs) in Abuja. He explained that the tariff adjustment is necessary to strike a balance between safeguarding consumers and enabling telecom companies to stay profitable and invest in critical infrastructure.

“We understand the challenges faced by telecom companies, but we also want to protect the public. What will be approved will not be a 100% increase,” Tijani assured.

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Expected Tariff Adjustments

Although the Nigerian Communications Commission (NCC) is still reviewing the proposal, reports suggest that the tariff hike could be around 40%. This means call rates may increase from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and 1GB of data could cost at least ₦1,400.

Tijani noted that consultations are ongoing to finalize the rates.

“NCC will come up with a clear directive on how we will go about it,” he said, adding that the new tariffs would soon be made public once approved.

Challenges in the Telecom Sector

The tariff hike comes as major operators like MTN Nigeria and Airtel face financial difficulties due to rising operational costs and economic challenges in the country. Both companies reported significant losses in 2023 and 2024, which has raised concerns about the sustainability of the telecom sector.

Tijani emphasized that the increase aims to ensure the survival of telecom companies while encouraging continued investment in infrastructure.

“We need to create an environment where companies can thrive and consumers are not overly burdened,” he stated.


Tags: Telecommunications

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