Wednesday, January 8, 2025 will be remembered as the day the Federal Government took a bold but needed step to secure the future of Nigeria's Telecommunication Industry by agreeing to the Telecommunication companies' demands to update data and call tariffs.

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, disclosed this after a stakeholders' meeting with Mobile Network Operators (MNOs) in Abuja.

The move drew the curtain on a prolonged negotiation and lobbying episode between the telecommunications companies, who had urged for a price review after 11 years, and the Federal Government. 

Predictably, the development caused an uproar on social media and other discussion forums, thanks in large part to the already grappling and soaring inflation of 39.93%.

Understandably, concerns also arose over the financial strain this increase will cause Nigerians, especially as they are yet to recover from the fuel price hike, rising food prices, increased electricity tariff, and the budget-heavy festive season.

So, another tariff increase is seen as too much to bear. The price adjustments also raised worries about affordability and access to essential communication services for millions across the country.

In his address, Minister Bosun attempted to ease tensions by revealing that the tariff review is just one of many efforts by the government to address sustainability challenges in the telecom sector.

He also clarified that the increment would be less than the 100% increase requested by service providers with the government seeking to balance sector growth and protect Nigerians from excessive financial burdens. No final number or percentage has been announced yet. Tijani said;

The essence of this gathering is recognising the critical role the telecom sector plays in driving Nigeria’s economic development,

Tariff will go up. That’s the verdict. But it won’t be by 100%. We need to ensure that as a sector, we put the right regulations in place that can ensure the growth of this sector, continue to contribute to job creation, but also enable other key sectors in the country as well.

The Bigger Picture

Price upward reviews are rarely popular, but they are sometimes necessary to ensure organisations can continue delivering quality services. For telecom operators, the price adjustment is not just about increasing revenue—it’s about sustaining an ecosystem that benefits over 223 million Nigerians.

Airtel Nigeria CEO, Dinesh Balsingh explained in a statement that the economic realities of rising operational and capital costs necessitate the tariff adjustments. He argued that for telecommunications companies to deliver superior connectivity and foster digital inclusion, tariff increments are essential. Balsingh said;

The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments,

This is aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers.

At a time when manufacturers are leaving the country due to economic challenges and Nigeria is courting foreign investors to bolster the economy, this pivotal moment underscores Nigeria as an open trading place.

Despite regulatory frameworks, it shows businesses are allowed to respond to market realities for sustainability and growth.

However, telecom operators have assured Nigerians that their focus is not solely on an upward review of prices. Gbenga Adebayo, chairman of ALTON, stated,

We are not in the business of increasing prices for the sake of it. The reality is, without these adjustments, the sector will collapse.

Nigerians can also trust that while the adjustment has been close to be finalised upon and is set to take soon, the Federal Government has emphasised the importance of transparency.

Aminu Maida, Executive Vice Chairman of the Nigerian Telecommunications Commission (NCC), noted that the tariff adjustments will be accompanied by measures to simplify billing systems and enhance transparency. Maida said;

We’ve revised our quality of service regulations, bringing the entire value chain into scope for compliance, from MNOs to tower codes and transmission companies,

So when we do see these tariff modifications, it’s also going to come with simplification. Every MNO or service provider must comply with a simplified template to clearly show Nigerians what they are being charged per minute, per voice, per SMS, and per megabyte of data.

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