Federal Government Proposes 30-60% Telecom Tariff Hike to Sustain Sector

The Federal Government has proposed a 30-60% increase in telecom tariffs to ensure the sustainability of the telecommunications sector while keeping services affordable for Nigerians. This was disclosed by the Minister of Communications and Digital Economy, Dr. Bosun Tijani, during an interview on Channels Television.

Dr. Tijani revealed that recommendations from independent consultants, including KPMG, have been received and are being reviewed. While telecom operators had pushed for a 100% tariff hike, the government opted for a more moderate adjustment to balance affordability for consumers with the need to maintain the sector’s viability and growth.

“The telecommunications sector contributes over 16% to our GDP, employs thousands of Nigerians, and is crucial to the nation’s digital economy,” Dr. Tijani stated. “However, it is essential to ensure services remain accessible while supporting the sector’s sustainability.”

The Nigerian Communications Commission (NCC) is leading the review process, which is based on data-driven analysis. The minister assured Nigerians that consumer interests and sector sustainability remain top priorities in the ongoing discussions.

In addition to the tariff review, the government is investing in rural connectivity by deploying 90,000 kilometers of fiber-optic networks and constructing telecom towers in remote areas through Special Purpose Vehicles (SPVs). These measures aim to address the connectivity gap in underserved regions.

Dr. Tijani also highlighted Nigeria’s leadership in managing telecommunications infrastructure resilience, citing recent efforts to address submarine cable disruptions. He reiterated the government’s commitment to harmonizing taxes and designating telecom infrastructure as critical national assets.

To ensure improved service delivery, the minister emphasized that operators will be held accountable for service disruptions, with measures in place to resolve issues swiftly.

“We are committed to achieving meaningful connectivity for all Nigerians—25 Mbps in urban areas and 10 Mbps in rural areas—while fostering an environment conducive to private and public investments,” Dr. Tijani assured.

The proposed tariff adjustment and infrastructural initiatives are part of the government’s broader strategy to enhance the digital economy and ensure long-term benefits for consumers and the industry.