FG approves 50% telecom tariff hike to prevent job losses, industry collapse

By Kunle Sanni

The federal government has approved a 50% increase in telecom tariffs to prevent job losses and ensure the sustainability of the sector, Minister of Communications and Digital Economy, Bosun Tijjani, announced on Tuesday.

Speaking at a press briefing at the State House, Abuja, Tijjani explained that without the tariff adjustment, some telecom companies risked shutting down, leading to widespread job losses.

“If we chose not to allow the increase in tariffs, we would be at risk of losing jobs, as some of these companies could shut down,” he stated.

Tijjani made the remarks after leading the leadership of Airtel and its founding chairman, Sunil Bharti Mittal, to a meeting with President Bola Tinubu.

The minister emphasized that the government had thoroughly evaluated the tariff hike before approval, considering the telecom sector’s critical role in the economy.

He noted that the industry employs nearly half a million Nigerians, making it a key economic driver.

“We had already been reviewing the operators’ requests for a tariff increase before President Tinubu took office, but he insisted on conducting a thorough evaluation before making a decision,” Tijjani said.

The government commissioned a study led by KPMG, which provided insights into the most sustainable tariff adjustments to balance affordability and industry growth.

Beyond affordability, Tijjani stressed that the government is committed to ensuring “meaningful access” to telecom services—focusing not just on connectivity but also on service quality.

“The Nigerian Communications Commission (NCC) has been working to shift the focus from just the quality of service to the quality of experience. Now that mobile network operators have the opportunity to increase tariffs, they must ensure that quality remains a priority,” he added.

The minister also highlighted ongoing investments in telecom infrastructure, including a 90,000 km expansion of Nigeria’s fibre-optic network and Executive Council approval for 7,000 new telecom towers in rural areas.

While the private sector remains the primary investor, the government is stepping in to accelerate universal and high-quality connectivity, he said.

Airtel Chairman Sunil Bharti Mittal reaffirmed Nigeria’s strategic importance to the company’s operations in Africa.

“Nigeria is the most important part of our Africa strategy. In fact, the entire African business rests on the back of Nigeria for Airtel,” Mittal said at the briefing.

As part of its commitment, Airtel announced scholarships for 10 Nigerian students to pursue undergraduate and postgraduate engineering degrees in top Indian institutions.

The Airtel Africa Scholarship Programme, under the Satya Bharti School Programme, has supported 100,000 schoolchildren in India over the past 15 years. The Nigerian government will select the beneficiaries for this year’s programme.

The telecom tariff adjustment comes as the government continues to implement economic reforms aimed at stabilizing key industries and attracting investment into Nigeria’s digital economy.