The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, defended the 50% tariff hike on telecom services during a budget defense before lawmakers on Tuesday. He explained that the increase was necessary due to rising inflation and escalating operational costs, including the high prices of imported goods. Tijani emphasized that historically, the government had left investments in telecommunications infrastructure to private companies, which focus on areas with economic activity, such as locations with visible lights at night.
Despite Tijani’s defense, the tariff hike has faced backlash from advocacy groups and telecom subscribers. The National Association of Telecoms Subscribers (NATCOMS) and the Socio-Economic Rights and Accountability Project (SERAP) have expressed plans to challenge the increase in court. NATCOMS has threatened legal action if the hike is not reversed or adjusted to a more reasonable 10%. Similarly, SERAP issued a 48-hour ultimatum for the reversal, labeling the hike “unlawful.”
The Nigerian Communications Commission (NCC) approved the tariff hike on Monday, setting a 50% cap, a compromise after operators had requested a 100% increase. The NCC stated that this was the first tariff adjustment since 2013 and aimed to balance the sustainability of the telecom industry with the protection of consumers. The adjustment, while necessary to address the financial pressures on operators, has sparked frustration among low-income earners who rely on affordable telecom services for daily activities.
