Nigeria tasks Telcos on improved service delivery, justifies 50 percent telecoms tariff adjustment

*Wale Edun, Nigeria’s Minister for Finance and Coordinating Minister of the Economy, says the latest telecoms tariff increment will ensure innovation, create jobs, and contribute to Nigeria Gross Domestic Product, assuring period review of tariffs for balance and fairness to both consumers and operators

Gbenga Kayode | ConsumerConnect

Mr. Wale Edun, Nigeria’s Honourable Minister for Finance and Coordinating Minister of the Economy, has expressed the Federal Government’s support for the 50 percent telecoms tariff hike in the economy.

ConsumerConnect reports Edun, stated this Thursday, January 23, 2025, on Arise TV at the ongoing World Economic Forum (WEF), in Davos, Switzerland.

The Minister, however, urged the Mobile Network Operators (MNOs) to enhance their Quality of Service (QoS) for enhanced consumer experience in line with the price increase.

Mr. Wale Edun, Nigeria’s Honourable Minister for Finance and Coordinating Minister of the Economy

The Nigerian Communications Commission (NCC) Monday, January 20, 2025, announced its approval 59 percent hike for the MNOs’ age-long request for upward tariff adjustments in the telecoms sector of the Nigerian economy.

Mr. Reuben Muoka, Director of Public Affairs (DPA) at NCC, had stated………

Following the NCC’s announcement of the development Monday, however, the new tariff increment regime has continued to generate debates, controversies, and remarks across the West African country.

Telecoms tariff increments to ensure industry sustainability, says Edun

Speaking on the latest  Telcos’ tariff hike Thursday, in Davos, Minister Edun described the tariff adjustment as essential for sustaining the sector amid rising operational costs and inflation.

He stated: “Inflation has increased, and it must be reflected in the business operations of Telcos.

“While their prices are regulated, they cannot implement arbitrary tariffs.”

Edun also noted: “The rising cost of living must be considered, and I believe the 50 percent tariff adjustment is just the starting point.

“It’s about compromise, timing, and sequencing these necessary changes.”

The government further said: “Tariff rates have remained unchanged despite mounting pressures from inflation, exchange rate fluctuations, and the significant investments needed to meet rising consumer demand.”

On strategic importance of telecommunications to Nigeria Digital Economy

Justifying the rationale for the NCC approved 50 percent tariff increment, Edun said: “These financial challenges have placed substantial strain on operators, threatening the long-term sustainability of the telecom sector, which is a vital contributor to Nigeria’s digital economy.”

The Minister as well explained the critical role of the telecommunications sector in the Nigerian economy.

He described this as essential to the country’s infrastructure and business environment.

“The government expects the tariff adjustment to result in better call termination, fewer dropped calls, and overall improved service quality.

“We want telcos operating efficiently, terminating calls seamlessly, and delivering high-quality services.

“At the same time, we want them to foster innovation, create jobs, and contribute to GDP,” stated he.

The Minister, therefore, assured Nigerians, that tariff adjustment would be reviewed periodically, to ensure it remains balanced and fair for both consumers and operators in the telecoms ecosystem.

Edun restated the Nigerian Government’s commitment to fostering a thriving telecoms sector that supports innovation, economic growth, and job creation.

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