Bosun Tijani, the Minister of Communication Explains Why the Telecom Tariff Hike Must Not Exceed 60%

Bosun Tijani, the Minister of Communications, Innovation and Digital Economy stated that the primary reason the telecom tariff hike must not exceed 60% is because it will be harmful to citizens who are dependent on the telecom services. Bosun Tijani made this clear during a recent appearance on Channels TV, where he addressed concerns about rising telecom service prices in Nigeria. According to Tijani, while telecom operators have pushed for a 100% increase in service charges to offset operational challenges and rising costs, the government cannot approve such a drastic hike due to its potential economic impact on citizens.

Instead, the minister confirmed that the government has limited the allowable tariff increase to a range of 30% to 60%. He emphasized that this moderate adjustment is designed to ensure affordability while still allowing service providers to remain sustainable. Under the proposed 60% maximum hike, the cost of making phone calls, sending SMS, and accessing data will rise, but not to the extent requested by the operators. Specifically, if the upper limit is implemented, the average cost of phone calls will increase from the current rate of N11 to approximately N18.33 per minute. Similarly, the cost of sending an SMS will rise from N4 to about N6.67, while a 1GB data bundle will go from N287.50 to N479.17.

Tijani’s stance reflects a broader policy commitment to balancing market dynamics with public interest. The telecommunications sector, which plays a critical role in Nigeria's digital economy, has faced significant operational cost increases driven by inflation, exchange rate fluctuations, and rising energy prices. Telecom operators argue that without a substantial tariff adjustment, they risk financial instability and diminished service quality. However, the government recognizes that a steep rise in telecom charges could place an additional financial burden on millions of Nigerians who rely on affordable communication services for both personal and professional use.

The minister's decision to cap the increase at 60% also underscores the government's efforts to maintain a stable economic environment while ensuring that telecommunications remain accessible. Given the growing dependence on mobile connectivity for banking, education, healthcare, and other essential services, any significant disruption in affordability could have far-reaching socio-economic consequences. Tijani’s comments signal a cautious approach to economic regulation, aiming to support business continuity for telecom operators while protecting consumer rights and preventing undue hardship for citizens.

The announcement has drawn mixed reactions from stakeholders. Consumer advocacy groups have expressed relief that the tariff hike will not reach the 100% level originally proposed, but they remain concerned about the potential impact on low-income users. Telecom operators, on the other hand, continue to advocate for further dialogue with the government to address the underlying cost drivers affecting their operations. Tijani’s statement reflects a recognition of these competing interests and a commitment to ongoing negotiations to find sustainable solutions.

In conclusion, Tijani’s position on limiting the telecom tariff hike to no more than 60% illustrates the government's attempt to strike a delicate balance between supporting industry viability and safeguarding consumer affordability. The outcome will be closely watched by both the telecommunications industry and the millions of Nigerians who rely on these essential services.