- He explained that the decision was in tandem with the need to ensure the sustainability of foreign investment amidst rising operational costs and inflationary trends
The Federal Government has justified its decision to allow telecommunication companies to raise their tariffs by 50 per cent tariff, saying the increment is imperative.
The government said it approved the tariff hike to protect Nigerians from job losses and prevent multinational firms from leaving the country.
The Minister of Communications and Digital Economy, Dr Bosun Tijani, made this justification on Thursday, shortly after leading the management of Airtel Nigeria to the Presidential Villa in Abuja for a meeting with President Bola Tinubu.
He explained that the decision was in tandem with the need to ensure the sustainability of foreign investment amidst rising operational costs and inflationary trends.
“If we chose not to allow the increase in tariffs, we would be at risk of losing jobs, as some of these companies could shut down, and when you weigh that, it’s also not the best outcome for the economy,” the minister said.
Tijani noted that the government carefully considered the decision, given the critical role the telecoms sector plays in the country’s economy. He highlighted that the sector, including its entire value chain, employs nearly half a million Nigerians, making it a significant contributor to national development.
He further revealed that the request for a tariff increase had been on the table before the current administration took office, but President Bola Tinubu insisted on a thorough evaluation before approving any adjustments.
“This is a government that is extremely conscious of the state of the economy, and Mr President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike,” he said.
“To determine the optimal rate for the adjustment, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff increase.”
Tijani emphasised that the government’s focus extends beyond affordability to ensuring “meaningful access” to telecommunications services.
This involves not only providing connectivity but also guaranteeing high-quality service delivery, ensuring that Nigerians receive the full benefits of digital connectivity.
“The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority,” he stated.
To achieve its objectives, Tijani highlighted the government’s continued investment in telecommunications infrastructure, aiming to enhance connectivity and support economic growth across Nigeria.
“This includes the expansion of Nigeria’s fibre-optic network by 90,000 kilometres and the recent approval by the Executive Council for the construction of 7,000 additional telecom towers in rural areas.”
The minister affirmed that while private sector investment in the telecoms industry remains crucial, the government is actively intervening to guarantee universal access to high-quality connectivity across Nigeria.
This collaborative approach aims to bridge connectivity gaps and improve service quality nationwide.
It will be recalled that the Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, criticised the tariff hike, accusing the government of failing to conduct adequate consultations before approving the increase.
Labour unions also threatened to mobilise their affiliate unions to boycott telecom services unless the government rescinds the decision.
According to some stakeholders in Nigerian politics, such an increase would only worsen the country’s inflation rate
Discussion about this post