Market News

• Group backs 50% telecom tariff hike

The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, has said the tariff in the telecommunications sector will be reviewed periodically.

Edun spoke at the ongoing 2025 World Economic Forum (WEF) in Davos, Switzerland.

According to him, the periodic review will ensure the tariff remains balanced and fair to consumers and operators. He urged telcos to enhance service delivery in line with the price increase.

Edun said: “There has been inflation and rising costs and that has to be reflected for the telcos. There has been a high cost of living that has to be reflected.

“I think the 50 per cent tariff adjustment is a starting point. It’s about compromise, timing, and sequencing these necessary changes.

“We want telcos operating efficiently, terminating calls seamlessly, and delivering high-quality services. At the same time, we want them to foster innovation, create jobs, and contribute to GDP.

“The 50 per cent tariff is a situation that will be looked at on a forward-looking basis. As we go forward there will continue to be review, consultations and discussions in this area.”

Edun also reaffirmed the government’s commitment to fostering a thriving telecommunications sector that supports innovation, economic growth, and job creation.

The minister said the goal of the government is to improve the economy and attract investments across sectors.

Meanwhile, a group, Arewa Youth Assembly has backed the Nigeria Communications Commissions (NCC) for approving the 50per cent hike in telecom tariffs.

The group stated that it was also an opportunity for the sector’s regulator to insist on fairness, transparency, and accountability in the telecommunications sector.

The group said the move will open up the sector for robust growth and investment.

In a statement signed by its speaker, Mohammed Salihu Danlami, the group stated that the increase in telecom tariffs was long overdue and has become necessary.

The group also called on operators to use the proceeds of the adjusted tariff prices to immediately invest in improving services.

According to the group, the support of most Nigerians for the tariff adjustment was on the condition that service quality would be improved.

It also called for calm and understanding from Nigerians, noting that they expect improved growth in the telecom sector, greater protection of customers, improved efficiency of telecom services and ultimately the sustainability of Nigeria’s telecommunication sector. 

It said: “The telecommunication sector, which employs millions of Nigerians directly, and is responsible for powering other sectors of the country, is the only sector that has maintained status quo in terms of price of its services despite the skyrocketing of the prices of basic requirements for its operations, such as diesel, power, and even manpower costs.

“The industry was near the point of collapse. The global rise in inflation and rise in cost of its operation, coupled with foreign exchange high costs plus increased network maintenance expenses, was rendering telecommunication companies ineffective to deliver services to Nigerians.

“No serious regulator that understands the need for prices to be market reflective would have folded its arms to allow such a collapse.”

The group explained that the tariff adjustment was a fundamental decision that had to be taken to preserve the industry and its impact on the wider economy, noting that “everything in Nigeria today depends on telecoms, whether it is healthcare, education, corporate businesses, and even the government.”

It said it was imperative for tariffs to be increased to ensure that the industry was made stronger and that service could be improved.

 “Furthermore, this tariff adjustment will help the operators to purchase new equipment to enhance the country’s telecommunication infrastructure. It would also reenergise the sector in a way that would lead to a surge in investments. This will ultimately translate to improved network quality, expanded access and a better experience for consumers. We at the Arewa Youth Assembly are hopeful that the sector would grow beyond expectations, creating more opportunities for our people to get jobs in telecoms.

“It is ironical that those complaining of tariff increase are the same ones who are complaining of poor service delivery. They are unaware that the telecommunication companies cannot improve their infrastructure to meet growing demand without having cost reflective prices. To address Quality of Service problems, they need a new injection of funds,” the statement read.

On Monday, the NCC granted approval to telcos to implement a 50 per cent tariff hike.

The move has sparked several reactions, including the Nigeria Labour Congress (NLC) criticising the Federal Government for approving the increase.

NLC asked Nigerians to prepare for a possible nationwide boycott of telecom services while describing the decision as a “clear assault” on Nigerian workers’ welfare.

However, according to the minister, the tariff adjustment was essential for sustaining the sector amid rising operational costs and inflation.