Nigerian Government Caps Telecom Tariff Hike at 60%, Says Minister

The Federal Government has announced a limit on telecom tariff increases, ensuring that any adjustments to call and data rates do not exceed a 60% rise. This declaration was made by Minister of Communications and Digital Economy, Bosun Tijani, in response to growing concerns about affordability and the impact of inflation on telecom service costs.

In a press briefing on Monday, Tijani emphasized the government’s commitment to balancing industry needs with consumer protection. He stated, “While we recognize the telecom sector’s challenges, we cannot allow prices to rise unchecked, as this would disproportionately affect the average Nigerian.”

The proposed increase comes amid heightened operational costs in the telecom sector. Rising energy prices, foreign exchange volatility, and high inflation have significantly burdened telecom operators. Industry insiders claim that these factors have made it increasingly difficult for companies to maintain current tariffs while delivering quality service.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) recently echoed these sentiments, urging the government to expedite tariff reviews. They cited delayed action as a major deterrent to telecom investments in 2024, which subsequently impacted infrastructure development and service quality.

Under the new tariff structure, calls may cost as much as ₦18 per minute, up from the current average of ₦11. This represents a potential 63% increase, pushing close to the government-mandated limit. ALTON described this review as necessary but stressed that further delays could exacerbate the industry’s challenges.

Meanwhile, consumer advocacy groups have expressed mixed reactions. While some acknowledge the inevitability of tariff adjustments due to economic realities, others worry about the strain on household budgets. A recent survey revealed that over 60% of Nigerians rely heavily on mobile services for both communication and business, making affordability a pressing concern.

Minister Tijani reassured Nigerians that the government remains committed to ensuring fair pricing. He disclosed ongoing discussions with stakeholders to address consumer protection and infrastructure investments. He also emphasized plans to support rural connectivity and expand access to affordable telecom services across underserved regions.

As the telecom sector braces for the effects of these adjustments, experts predict that the government’s intervention will encourage operators to optimize their services while keeping costs relatively affordable for consumers.