Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has announced that telecom service prices in the country are set to increase by 30 to 60 percent. This adjustment comes in response to longstanding demands from telecom operators for tariff hikes, citing rising operational costs.
Speaking during a recent appearance on Channels Television, the minister ruled out the 100 percent increase proposed by telecom operators, describing it as harmful to Nigerian citizens. Instead, he indicated a more moderate increase would be implemented, stating, “It shouldn’t be more than anywhere between 30 percent to 60 percent.”
If the upper limit of 60 percent is approved, the cost of key services would rise significantly:
– Calls: From N11 per minute to N18.33 per minute.
– **SMS: From *N4 to N6.6 per text message.
– **Data:** From **N1,000** for 1GB to at least **N1,667**.
The proposed increment follows years of financial strain on the telecommunications sector. Telcos have faced a harsh operating environment, with a 300 percent rise in operating costs over the past decade. The devaluation of the naira in 2023 worsened the situation, leading to record losses and renewed demands for tariff adjustments.
Tijani emphasized the importance of balancing the sustainability of the telecom industry with the affordability of services for Nigerians. “This sector is responsible for driving growth in our country. It will be harmful to our people to allow the MNOs [Mobile Network Operators] to increase by 100 percent,” he explained.
Karl Toriola, CEO of MTN Nigeria, acknowledged the sector’s financial difficulties, expressing hope for a reasonable resolution. “While we have asked for a 100 percent increase, the Nigerian Communications Commission (NCC) may not approve such a high adjustment due to the economic situation,” Toriola stated. He added that the industry remains optimistic about decisions that ensure its sustainability.
The impending price hike marks a critical juncture for Nigeria’s telecom sector, balancing industry demands and consumer welfare. As the government and industry stakeholders deliberate, Nigerians should prepare for higher telecom costs in the coming months.
