The Federal Government has defended its approval of a 50% tariff hike for telecommunications services, arguing that the move is necessary to protect jobs and prevent multinational firms from exiting the country.
Minister of Communications and Digital Economy, Dr. Bosun Tijani, made this assertion on Thursday after a high-level meeting between Airtel Nigeria’s management and President Bola Tinubu at the Presidential Villa, Abuja.
Tijani stressed that without the adjustment, telecom companies could face financial strain, leading to job losses and reduced foreign investment in the sector.
“If we refused to allow the tariff increase, we risked losing jobs as some of these companies could shut down. That would be an even worse outcome for the economy,” the minister stated.
The government, he explained, weighed all possible outcomes before approving the hike, considering the critical role of telecoms in Nigeria’s economy. The sector supports nearly half a million jobs across its value chain and contributes significantly to national GDP.
The tariff increase had been pending long before President Tinubu’s administration, but the government opted for a thorough review before making a final decision.
“This administration is deeply conscious of the economic realities faced by Nigerians. The President takes every citizen into account when making difficult but necessary choices. Our goal is to strike a balance between consumer interests and business sustainability,” Tijani added.
To ensure a fair and sustainable increase, the government commissioned KPMG, a global consulting firm, to conduct an independent study. The findings helped determine an optimal tariff adjustment that would protect both consumers and telecom operators.
Beyond affordability, quality of service and meaningful access are also top priorities.
“The NCC is not just focused on pricing but also on ensuring telecom operators improve the quality of service and user experience,” Tijani said.
To support the sector and enhance connectivity, the government is making massive investments in telecom infrastructure, including the expansion Nigeria’s fibre-optic network by 90,000km and the approval of 7,000 additional telecom towers in rural areas
These initiatives aim to bridge the digital divide and strengthen nationwide connectivity.
Despite government assurances, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have strongly opposed the tariff hike, accusing the government of failing to consult widely before implementing the decision.
Labour unions have even threatened to mobilize protests and boycott telecom services unless the government reverses the increase.
Additionally, some economic analysts warn that the higher telecom costs could further worsen inflation, piling more pressure on Nigerians already struggling with the rising cost of living.
As tensions rise, the government insisted that ensuring a stable and thriving telecom industry is crucial for job security, investment, and long-term economic growth. However, whether this justification will be enough to appease critics remains to be seen.