Tinubu Govt Hints on Tariff Increase for MTN, Airtel, Etisalat and Other Telecom Operators

The Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, has revealed that a tariff increase in the telecommunications sector is imminent as the government works to balance consumer protection with the financial sustainability of telecom operators.

Tijani made this announcement during a stakeholders’ meeting with Mobile Network Operators (MNOs) in Abuja on Wednesday.

He explained that the proposed tariff adjustment aims to ensure the industry’s long-term viability while maintaining fair pricing for consumers.

The Nigerian Communications Commission (NCC) is reviewing proposals submitted by telecom operators, with an official announcement of the new tariffs expected soon.

While the exact percentage of the increase has not been disclosed, there are speculations of around a 40% increase. If implemented, call rates could rise from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and 1GB of data could cost at least ₦1,400.

Major telecom operators, including MTN Nigeria and Airtel, have advocated for a 100% tariff hike, citing escalating operational costs caused by inflation, volatile exchange rates, and surging energy prices.

In an interview with Arise TV, MTN Nigeria’s Chief Executive Officer, Karl Toriola, emphasised the financial pressures faced by the industry, warning that without intervention, investment in infrastructure could be jeopardised.

Tijani assured stakeholders that the government would not approve the full 100% increase proposed by operators.

Consultations and engagements are ongoing to arrive at an acceptable rate, the minister stated. The NCC will come up with a clear directive on how we will go about it.

It will be recalled that Telecom operators have warned of imminent service disruptions unless tariffs are increased to match rising operational expenses.

This tariff increase is coming after the Nigerian government had proposed a 5 per cent excise duty on telecommunications, gambling, and gaming services. This proposal is included in the new “Nigeria Tax Act” bill, submitted to the National Assembly on October 4, 2024.

The bill aims to impose excise duties on services provided in Nigeria, including postpaid and prepaid telecom services regulated by the Nigerian Communications Commission (NCC) and gaming, gambling, and lottery activities.

The tariff increase and tax proposal are coming at a time when Nigerians are grappling with skyrocketing living costs, driven by a hike in fuel prices that has triggered sharp increases in transportation, food, and other essential expenses. Such an increase in tariffs will add another layer to the high cost of living for the citizens.

West Africa Weekly earlier reported that six months after the Minister of Agriculture, Abubakar Kyari, pledged to implement strategic measures to reduce food prices, Nigerians face unprecedented food inflation, with over 30 million people projected to experience acute food shortage.

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