FG Approves Tariff Hike in Telecom Sector, Guidelines Expected in Weeks

The Federal Government has approved a request by telecom operators to increase telephone tariffs, signaling the first adjustment in over a decade. This announcement was made by Minister of Communications, Innovation and Digital Economy, Bosun Tijani, during a meeting with Chief Executive Officers (CEOs) of Mobile Network Operators (MNOs).

The Nigerian Communications Commission (NCC), the sector’s regulatory body, is set to release guidelines within one to two weeks, with the new tariffs likely to take effect next month. Operators had initially requested a 100% hike, but the government has assured that the increase will not reach that level.

Minister Tijani emphasized the necessity of the tariff adjustment to stimulate investment and growth in the telecom industry. He noted the government’s commitment to balancing the need for affordability for consumers with the sustainability of telecom operations. Tijani also highlighted the government’s plans to invest in infrastructure to improve service quality, which had largely been left to private companies.

During the meeting, NCC Executive Vice Chairman (EVC), Dr. Aminu Wada Maida, stated that ongoing consultations with stakeholders would finalize the percentage increase. He added that the NCC is revising quality-of-service regulations to ensure compliance and transparency in telecom pricing.

Operators, including MTN Nigeria and Airtel Nigeria, justified the proposed increase, citing rising operational costs. Airtel Nigeria’s CEO, Dinesh Balsingh, stressed that the adjustments are necessary for delivering superior connectivity and ensuring the sector’s long-term sustainability.

Industry bodies, such as the Association of Telecom Companies of Nigeria (ATCON) and the Association of Licensed Telecom Companies of Nigeria (ALTON), welcomed the tariff hike, noting it was long overdue. They emphasized that stagnant tariffs over the past decade had strained the sector amid significant economic challenges. However, the exact percentage of the approved increase remains unclear.

Consumer advocacy groups have expressed mixed reactions. The President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria), Sina Bilesanmi, stated that the association’s position would be clarified following a meeting with the NCC. Meanwhile, Deola Ogunbanjo, President of the National Association of Telecom Subscribers of Nigeria (NATCOMS), who had initially supported a marginal hike, has shifted to opposing the increase outright.