Nigeria’s Minister of Communications, Bosun Tijani, has defended the 50% telecom tariff hike, stating it was necessary to prevent company shutdowns and job losses. He emphasized government efforts to improve service quality and expand connectivity, while Airtel’s Sunil Mittal warned that further adjustments might be required due to rising costs.
Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the federal government’s approval of a 50% telecom tariff hike, stating that it was necessary to prevent mass job losses and company shutdowns.
Tijani made this assertion after meeting with President Bola Tinubu and a delegation from Airtel, led by founder Sunil Mittal. He explained that telecom operators were struggling with rising operational costs, including inflation and currency devaluation, which placed immense pressure on their financial stability.
According to the minister, the telecommunications sector employs nearly half a million Nigerians, making its sustainability a priority. He emphasized that the government conducted a thorough study—led by consulting firm KPMG—to ensure the tariff adjustment was reasonable and did not excessively burden consumers.
“If we had refused the tariff increase, we risked companies shutting down and thousands of jobs being lost. It was a tough but necessary decision,” Tijani said.
Beyond pricing, the minister highlighted the government's commitment to improving service quality. He noted that the Nigerian Communications Commission (NCC) is shifting focus from mere network availability to overall user experience. Additionally, efforts are underway to expand connectivity infrastructure, with plans to deploy 90,000 kilometers of fiber-optic cables and construct 7,000 telecom towers in rural areas.
Sunil Mittal, speaking on behalf of Airtel, acknowledged the economic pressures that necessitated the hike, citing rising costs of diesel, electricity, salaries, and imported network equipment. He warned that further adjustments might be needed in the future, depending on economic conditions.
Despite the challenges, Mittal reaffirmed Airtel’s long-term commitment to Nigeria, emphasizing that continued investment in infrastructure is key to maintaining service quality and expanding network coverage.
