Minister: Telecom tariff hike stopped companies from shutting down

The Minister of Communication and Digital Economy, Dr Bosun Tijani, says the 50 per cent tariff increase for telecom companies prevented firms from shutting down in the country.

Tijani said the tariff hike will also guarantee meaningful access to telecoms services for Nigerians.

The minister said this while briefing State House Correspondents in Abuja on Thursday, February 27, 2025.

The minister had led the Chairman of Bharti Airtel, Sunil Mittal, and other members of the executive of the company to a meeting with President Bola Tinubu at the Presidential Villa in Abuja.

Tijani said the decision to increase telecoms tariff was difficult.

He, however, stated that it was the responsibility of the government to look out for the interest of citizens, individuals, and businesses.

Tijani said: “We have to ensure that when they invest, we can keep them afloat.

“This is a sector that employs close to half a million people in this country, including the value chain.

“Also, it was quite a difficult decision, balancing the need to allow these businesses to be sustainable, to stay afloat, but at the same time ensuring that each and every citizen can have access to telecommunication services.”

He disclosed that the federal government engaged KPMG to conduct a study to determine the optimal tariff allowance which led to the 50 per cent increase.

The minister added: “If we chose not to allow the increase in tariff, we also were at risk of losing jobs, and some of the companies packing up.

“When you weigh that, it’s also not the best thing for the economy.

“The priority for this government is actually meaningful access.

NLC orders workers to boycott telecom services over 50% tariff hike

“We don’t want our people to just have access to telecommunication services.

“We want it to be meaningful; the quality that you get is extremely important.”

Tijani stated that the federal government had invested in 90,000 kilometres of fiber to ensure the entire country was covered.

The minister added that the Federal Executive Council also approved investment in additional 7,000 telecoms towers in rural areas.

He said quality access and connectivity required significant investment.

Mittal, on his part, said Nigeria was the soul of Barthi Airtel’s operations in Africa, with the potential to match India’s advancements in digital innovation, connectivity and financial inclusion.

He said Airtel’s success in Nigeria was crucial to its overall success in Africa.

Mittal added that Nigeria’s strategic importance underscored Airtel’s objective of driving growth and transformation across the African continent.

The Star