Minister Bosun Tijani Assures 60% Limit on Telecom Tariff Increases
Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has indicated that any forthcoming increase in telecommunications tariffs in Nigeria should not exceed 60%. This statement comes in response to telecom operators’ requests for a 100% hike to counter rising operational costs.
During an interview on Channels Television’s Politics Today, Tijani emphasized the need to balance industry sustainability with consumer affordability. He stated, “I think it shouldn’t be more than anywhere between 30 to 60 per cent.”
The minister highlighted the sector’s significant contribution to Nigeria’s economy, accounting for approximately 14 to 16% of the GDP and directly employing over 15,000 individuals. He acknowledged the operators’ concerns about increased expenses due to inflation and higher service delivery costs but maintained that a 100% tariff increase would adversely affect Nigerians.
To address these challenges, Tijani mentioned ongoing government efforts, including:
- Enhancing Local Content: Reducing reliance on imports to mitigate foreign exchange pressures.
- Protecting Infrastructure: Designating telecom infrastructure as critical national assets to prevent vandalism and reduce maintenance costs.
- Tax Reforms: Harmonizing taxes to alleviate the financial burden on operators.
- Infrastructure Investment: Planning to lay 90,000 kilometers of fiber optic cable nationwide, with support from the World Bank and other donors, to enhance connectivity, especially in underserved rural areas.
These initiatives aim to ensure the telecom sector’s growth and sustainability without imposing undue hardship on consumers. The Nigerian Communications Commission (NCC) is expected to review and provide directives on the proposed tariff adjustments, striving to protect consumer interests while enabling telecom companies to continue significant investments in the country’s digital infrastructure.