Olufemi Adeyemi 

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced a projected 30-60% increase in base costs for telecom services, impacting call, SMS, and data rates.

This figure is significantly lower than the 100 percent increase that telecommunications companies have requested. Tijani made this statement during a recent appearance on a Channels TV program, where he asserted that the telecom operators' demand for a 100 percent hike is unfeasible.

He clarified that the increase would range from 30 to 60 percent, stating, “It shouldn’t be more than anywhere between 30 percent to 60 percent.”

Should the maximum increase of 60 percent be implemented, the average cost of phone calls would rise from N11 to N18.33 per minute, SMS fees would increase from N4 to N6.67, and the price of a 1GB data bundle would go up from N287.5 to N479.17.

Tijani emphasized that a 100 percent increase would negatively impact citizens reliant on telecom services. “This sector is crucial for driving growth in our country; allowing MNOs to raise prices by 100 percent would be detrimental to our people,” he stated. 

This announcement comes after a decade of requests for tariff increases from telecom companies, which have been grappling with a challenging operating environment that has seen their costs rise by 300 percent over the years. The significant devaluation of the naira in 2023 has exacerbated the financial difficulties faced by these companies, leading to increased demands for higher tariffs.

In December, Tijani acknowledged that tariff adjustments were necessary for the sustainability of the industry. Karl Toriola, CEO of MTN Nigeria, noted that while telecom operators have sought a 100 percent increase, the Nigerian Communications Commission (NCC) is likely to consider the current economic climate before approving such a substantial rise.

He expressed optimism, stating, “We are hopeful and optimistic that the realities are staring us in the face and the right decision will be taken for the sustainability of the industry.”