The federal government has defended its decision to authorize a 50% rate rise for telecoms services, stating that failure to do so could have led to job losses and the collapse of some companies in the sector.
The minister of Communications and Digital Economy, Dr. Bosun Tijani, made this clarification on Thursday while addressing journalists at the State House, Abuja.
“If we chose not to allow the increase in tariff, we would be at the risk of losing jobs, as some of these companies could pack up, and when you weigh that, it’s also not the best thing for the economy,” the minister said.
Tijani clarified that the government had thoroughly studied the decision, given the critical role the telecom sector plays in the country’s economy, noting that the sector, including its entire value chain, employs nearly half a million Nigerians, making it a significant contributor to national development.
He noted that the tariff increase request had been pending before the current administration took office, but President Bola Ahmed Tinubu had insisted on a thorough evaluation before approving any adjustments.
“This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike”, he said.
To determine the optimal rate for the adjustment, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff increase.
Tijani also emphasized that beyond affordability, the government is prioritizing “meaningful access” to telecommunications services, explaining that this meant ensuring not just connectivity but also quality service delivery.
“The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority”, he stated.
To support this goal, Tijani highlighted the government’s ongoing investments in telecommunications infrastructure.
These include the expansion of Nigeria’s fiber-optic network by 90,000 kilometers and the recent approval by the Executive Council for the construction of 7,000 additional telecom towers in rural areas.
The minister reiterated that while the private sector must continue investing in the industry, the government is also stepping in to ensure Nigeria achieves universal and high-quality connectivity.
