Telecoms tariff hike prevented companies from shutting down, says Bosun Tijani

Bosun Tijani, minister of communications, innovation and digital economy, says companies were at risk of shutting down if the federal government did not approve a tariff increase for telecommunications services.

Tijani spoke on Thursday after meeting with President Bola Tinubu with a delegation from Airtel, led by Sunil Mittal, its founder and chairman.

On January 20, the Nigerian Communications Commission (NCC) granted approval to telecommunications companies (telcos) to implement a 50 percent tariff increase.

The move had triggered bitter reactions from many quarters, with copious criticisms from the Nigeria Labour Congress (NLC).

Speaking after the meeting, Tijani assured that the federal government is committed to protecting both consumers and businesses.

According to the minister, the hike was necessary to prevent widespread job losses and potential company closures.

The minister said telecom operators faced several challenges, adding that without the tariff adjustment, the industry would have been rocked by significant financial strain.

He said the telecoms sector employs nearly half a million Nigerians, making it crucial for operators to maintain financial stability.

“This government is extremely conscious of the state of the economy. The President carefully considers every citizen before making decisions,” Tijani said.

“We had to conduct a study, led by KPMG, to determine the optimal increase that would ensure sustainability without overburdening consumers.

 “If we had refused the tariff increase, we risked companies shutting down and losing jobs. It was a difficult but necessary decision.”

The minister also said the government’s focus extends beyond affordability to ensuring high-quality service.

 “We don’t just want Nigerians to have access to telecom services; we want them to have meaningful access,” he added.

“That means improving service quality, which is why the Nigerian Communications Commission (NCC) is shifting focus from just quality of service to quality of experience.”

Tijani also outlined the government’s investments in expanding connectivity, including the deployment of 90,000 kilometres of fibre-optic cables and the construction of 7,000 telecoms towers in rural areas.

“This is a journey. Achieving nationwide, high-quality connectivity requires significant investment, and we must encourage both the private sector and the government to work together to make it happen,” he said.

‘MORE ADJUSTMENTS REQUIRED IN THE FUTURE’

On his part, Mittal attributed the tariff hike to rising operational costs, inflation, and currency devaluation.

The Airtel boss stressed that the industry requires continuous investment to maintain service quality and expand infrastructure.

“The situation has been generally tough. Inflation has significantly impacted costs — diesel, electricity, rentals, salaries, and transportation have all increased,” he said.

“The entire telecom network in Nigeria is imported, making it even more challenging.”

He acknowledged that while the 50 percent tariff increase was necessary to cover rising costs, “more adjustments might be required in the future”.

“We will work with the government and stakeholders to ensure a calibrated approach. As the Nigerian economy improves, we hope to gradually manage inflationary impacts,” he said.

Mittal reiterated Airtel’s long-term commitment to Nigeria, highlighting that despite economic challenges, the company has continued investing heavily in infrastructure.