Telecom Tariff Hike: Minister Tijani Defends 50% Increase Amid Backlash

By DAYO ADESULU

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the recent 50% increase in telecom tariffs, attributing it to inflationary pressures and rising operational costs. This decision has sparked widespread criticism from advocacy groups and telecom subscribers, with some threatening legal action.

Why the Tariff Increase Was Necessary

Speaking before lawmakers during a budget defense session, Tijani explained the rationale behind the hike, noting:

• Economic Pressures: Rising inflation and the cost of imported goods have significantly increased the operational costs for telecom companies.
• Private Investment Challenges: He highlighted that telecom infrastructure development has historically been left to private companies, which prioritize economically viable regions using data such as nighttime satellite imaging.

“Private companies invest where they see economic activities. This tariff adjustment is essential to ensure the continued operation of telecom services,” Tijani stated.

Reactions from Advocacy Groups and Subscribers

The tariff hike has drawn backlash from key stakeholders:

• National Association of Telecoms Subscribers (NATCOMS): President Adeolu Ogunbanjo revealed plans to engage the Nigerian Communications Commission (NCC) to demand a reduction to 10%. Failing that, NATCOMS will proceed with legal action.
• Socio-Economic Rights and Accountability Project (SERAP): The group issued a 48-hour ultimatum for a reversal, labeling the hike “unlawful” and threatening to sue if the demand is unmet.

Subscribers argue that the increase disproportionately impacts low-income earners who depend on affordable telecom services for daily activities.

NCC’s Position on the Adjustment

The NCC approved the tariff hike, capping the increase at 50%, significantly lower than the 100% requested by telecom operators. In a statement, NCC emphasized:

• Balanced Approach: The adjustment aims to protect consumers while ensuring the sustainability of the industry.
• Empathy for Consumers: The commission acknowledged the financial burdens on Nigerian households and businesses and mandated transparent implementation by operators.
• First Adjustment Since 2013: The regulator described the move as a measured response to address rising operational costs and sustain telecom services.

Future Outlook

The debate over the tariff hike highlights the ongoing tension between ensuring affordable telecom services and maintaining industry viability. With advocacy groups poised for legal action and subscribers voicing concerns, the government and regulators may face increasing pressure to revisit the decision.