By DAYO ADESULU
The Nigerian Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the government’s decision to approve a 50% increase in telecom tariffs. The move, which has faced public outcry and impending legal challenges, is attributed to rising inflation and operational costs impacting the telecommunications industry.
Economic Pressures Drive Tariff Adjustment
While addressing lawmakers during a budget defense session, Minister Tijani emphasized the economic realities necessitating the tariff hike.
“Rising inflation and operational costs are the reasons for the recent tariff increase,” Tijani explained, highlighting the private sector’s significant role in the telecommunications infrastructure.
He further noted that investment decisions by private telecom companies are influenced by economic activity, as determined by “night-time satellite data.”
“They will see where light exists, and that’s where they will put their money. Because those lights, for them, indicate economic activities,” Tijani added.
Backlash from Advocacy Groups and Subscribers
Advocacy groups, including the National Association of Telecoms Subscribers (NATCOMS) and the Socio-Economic Rights and Accountability Project (SERAP), have expressed strong opposition to the tariff hike.
- NATCOMS’ Position:
NATCOMS President, Adeolu Ogunbanjo, indicated plans to negotiate with the Nigerian Communications Commission (NCC) to reduce the hike to 10%. Failing this, the group intends to file legal action next week. - SERAP’s Ultimatum:
SERAP issued a 48-hour ultimatum demanding a reversal of the hike, describing it as “unlawful.” The organization stated via its official social media account:“The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours.”
NCC Justifies Tariff Increase
The NCC approved the tariff adjustment after network operators sought a 100% hike. The approved 50% cap marks the first adjustment since 2013.
In a statement by its Director of Public Affairs, Reuben Muoka, the NCC described the increase as a “measured response” to the financial pressures faced by operators while balancing consumer interests.
“The NCC recognizes the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers,” the statement read.
Subscribers Raise Concerns
Many Nigerians have voiced frustration, arguing that the increase disproportionately impacts low-income earners who depend on affordable communication services. Critics also worry about its potential ripple effect on the economy.
Conclusion
As the 50% telecom tariff hike sparks national debate, the government and regulatory bodies must navigate the fine line between sustaining industry operations and addressing the concerns of consumers. The coming weeks will determine whether advocacy groups and legal challenges force a policy reversal or adjustment.
