Bosun Tijani, minister of communications, innovation and digital economy, said that companies would be in danger of closing if the federal government did not authorise a tariff hike for telecommunications services.
Tijani gave a speech on Thursday following a meeting with President Bola Tinubu and a group from Airtel, headed by the company’s founder and chairman, Sunil Mittal.
On January 20, the Nigerian Communications Commission (NCC) approved a 50% pricing increase for telecommunications service providers (telcos).
The Nigeria Labour Congress (NLC) was among the various groups that expressed resentment over the action.
Tijani reaffirmed the federal government’s commitment to safeguarding companies and consumers in a statement following the meeting.
According to the minister, the hike was necessary to prevent widespread job losses and potential company closures.
Telecom operators faced several difficulties, the minister said, adding that the sector would have been severely strained financially in the absence of the pricing change.
Nearly half a million Nigerians are employed in the telecom industry, he noted; thus, operators must preserve their 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.”
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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
For 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.
