Nigeria’s telecoms tariff hikes shouldn’t exceed 60 percent to protect consumers –Minister

*Dr. ‘Bosun Tijani, Minister for Communications, Innovation and Digital Economy, discloses the Federal Government will not allow the Mobile Network Operators to jack up tariffs by 100 percent, but will consider anywhere between 30 and 60 percent in order to protect Nigerian telecoms consumers’ rights and wellbeing

Isola Moses | ConsumerConnect

Amid current speculations about the likely percent of the imminent telecoms tariff increments, Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy, has advanced reasons for the Federal Government’s approach to not allow the Mobile Network Operators (MNOs) to jack up tariffs by 100 percent.

ConsumerConnect reports Dr. Tijani, who stated this Wednesday, January 15, 2025, while featuring as a guest on Channels TV programme monitored in Lagos, clarified that the Nigerian Government would rather settle for “anywhere between 30 and 60 percent” hikes in order not to “harm” telecoms consumers, among other factors.

It is noted that the telecoms companies, in the last few years, have intensified agitations over tariff increments for consumers.

Telcos: Why we propose 100 percent tariff increments to NCC

The network providers, under the auspices of the Association of Telecommunications Companies of Nigeria (ATCON) and the Association of Licensed Telecommunications Companies of Nigeria (ALTON), on several occasions, have advanced reasons why the Federal Government, through the Nigerian Communications Commission (NCC), should approve their proposal for upward tariff adjustments in the country’s telecoms ecosystem.

The MNOs also cited increasing operational costs, high inflation, and Naira devaluation among others to justify their request for tariff hikes.

Stressing the need for the regulators to accede to their tariff hikes proposal recently, Dr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria Communications Plc, in an interview early January this year, disclosed that the telecoms companies are unanimous in the 100 percent increase proposal.

Toriola said: “We at MTN believe we need adjustment of about 100 percent. I think the industry is pretty much aligned because we are all experiencing the same headwinds.

“Now, the government is very sensitive to squeezing consumers’ wallets with the pressures that have come from inflation and currency devaluation on consumers.”

The MTN Chief Executive, however, gave a proviso to the MNOs’ request: “So, I’m not sure they will give us 100 percent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be.”

Reasons Federal Government can’t grant 100 percent tariff hikes: Dr. Tijani

Explaining the Federal Government’s position on the burning issue of tariff increments, Dr. Tijani said the Federal Government truly acknowledged that tariff increases in the telecoms sector are due.

The Minister, however, averred that the government could not grant the 100 percent the telecoms companies are demanding from the industry regulators.

In regard to a possible percentage threshold for the impending tariff increases for consumers, he stated: “I think it should not be more than anywhere between 30 and 60 percent.”

According to him, though the Telcos are intensely pushing for 100 percent increases in tariffs to stabilise the sector, the Nigerian Government is aware that such a level of increases will be harmful to consumers.

Tijani further said: “We have already made it clear that we are not going to approve 100 percent.

“These companies are asking for 100 percent, stating clearly that this is what they believe they need to get.

“But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNOs to increase by 100 percent.”

Telecoms regulator working on modalities for tariff hikes, Minister assures

The Minister equally noted that the Nigerian Communications Commission is still working on the modalities for the tariff increases, and is yet to arrive at a particular figure.

It is necessary to look at the numbers, the implication any tariff increases will have on the people, and the sustainability of the sector of the Nigerian economy for proper balancing, he also submitted.

The Minister opined that for Mobile Network Operators to improve their Quality of Service (QoS) to the required standard, there is a need for them to keep improving their equipment.