Thursday, January 16, 2025

The increase in telecommunications rates should not be more than 30 or 60%: Minister

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Minister of Communications, Innovation and Digital Economy Bosun Tijani has stated that the proposed increase in telecommunication tariffs should not be more than 30 to 60 percent.

Tijani revealed this during an interview on Politics Today on Channels Television.

When asked about a specific threshold, he said, “I think it should be no more than 30 to 60 percent.”

Tijani underlined the important role of the telecommunications sector in Nigeria's economy, contributing between 14 and 16% of GDP, directly employing over 15,000 people and indirectly supporting around half a million more.

He described the sector as a driving force for digital connectivity and economic progress.

While acknowledging demands by telecommunication operators for a 100% tariff increase due to rising operating costs and inflation, the minister insisted that such an increase would hurt Nigerians.

He argued that any tariff adjustments must be evidence-based and guided by independent evaluations such as the recent KPMG report.

The minister highlighted the significant investments needed to sustain and expand telecommunications infrastructure, including towers, fiber optic cables, data centers and electrical solutions.

Although private sector investment is leading this effort, the government plans to intervene in underserved rural areas through special vehicles to ensure equitable access.

He revealed plans to lay 90,000 kilometers of fiber optic cable across the country, a project backed by $500 million from the World Bank and other donors, set to begin in the third quarter of 2025.

Addressing concerns over high data costs and poor service, Tijani highlighted ongoing collaborations between the government, the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission to improve customer satisfaction.

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He identified vandalism of critical infrastructure as a persistent problem and reiterated the designation of telecommunications infrastructure as a critical national asset to curb such disruptions.

Tijani also announced the upcoming launch of the National Broadband Alliance in February, which aims to provide affordable connectivity to schools, hospitals and government offices. Pilot initiatives have already connected six universities and several government offices.

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