Why We Can’t Grant 100% Tariff Increase – FG Tells Telcos

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has affirmed that the Federal Government will not approve a 100% increase in telecom tariffs despite rising operational costs faced by service providers.

Naijaonpoint reports that telecom operators have consistently pushed for tariff adjustments, citing inflation, naira devaluation, and escalating operational expenses.

But speaking on Channels Television’s Politics Today, Tijani acknowledged the need for a tariff review but stressed that the proposed 100% hike was unacceptable.

“We have made it clear that a 100% increase is off the table,” Tijani stated. “While the companies argue this is essential for sector stability, we believe it would harm consumers.”

He suggested a potential increase of 30% to 60% as a more realistic adjustment.

The Nigerian Communications Commission (NCC) is still deliberating on the exact figure, balancing the need to sustain the industry with the economic impact on citizens.

Tijani also emphasized the importance of maintaining affordability in a sector critical to the country’s economic growth. He added that telecom operators must continue upgrading their infrastructure to meet consumer expectations.

During a separate interview, MTN Nigeria’s CEO, Karl Toriola, disclosed that telecom operators unanimously support a 100% hike.

“We need an adjustment of about 100%, but the government is mindful of the economic pressures on consumers,” Toriola said on Channels Television’s Sunrise Daily.

He expressed optimism about a phased adjustment that could help stabilize the sector over time.

Toriola highlighted that unlike sectors such as aviation and power, the telecom industry has yet to implement a tariff increase, even as it faces similar economic challenges.