The Federal Government, through the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended its decision to approve a 50% tariff hike for telecom services despite mounting criticism and legal threats from advocacy groups and subscribers.
Appearing before lawmakers to discuss the ministry’s budget on Tuesday, Tijani attributed the tariff increase to escalating inflation and rising operational costs, particularly for imported goods. He noted that the move was essential to sustaining the telecommunications industry.
“Historically, investments in telecommunications infrastructure have been driven by private companies, which prioritize economically viable areas. These decisions are often based on satellite data showing active economic activities,” Tijani explained.
The tariff hike has, however, been met with fierce opposition. Advocacy groups, including the Socio-Economic Rights and Accountability Project (SERAP), and the National Association of Telecoms Subscribers (NATCOMS) have threatened legal action.
SERAP issued a 48-hour ultimatum for the government to reverse the increase, labeling it “unlawful” and pledging to take the matter to court if their demand is not met. Similarly, NATCOMS President Adeolu Ogunbanjo expressed discontent, stating that while a modest increase of 5–10% might be tolerable, a 50% hike was excessive and burdensome for subscribers.
The Nigerian Communications Commission (NCC) had on Monday approved the adjustment, citing the need to balance the financial sustainability of the telecom sector with consumer interests. The regulator capped the hike at 50%, down from the 100% proposed by some operators.
In a statement, the NCC emphasized its commitment to protecting consumers while ensuring the survival of the telecom industry. It clarified that the adjustment, the first since 2013, was a measured response to the rising financial pressures faced by operators.
The tariff increase has sparked nationwide debates, with many Nigerians decrying its impact on low-income earners who rely on affordable communication services for daily activities.
Despite the backlash, the NCC insists the adjustments will be implemented transparently and fairly, ensuring the sustainability of the sector and its ecosystem of vendors and suppliers.