FG on why 50% Telecom tariff hike has to stay

Minister of Communications, Innovation and Digital Economy, Bosun Tijani

FG on why 50% Telecom tariff hike has to stay

The Federal Government says it approved a 50 per cent increase in tariffs for telecommunications services to prevent job losses and the collapse of some companies.

“If we chose not to allow the increase in tariffs, we would be at risk of losing jobs, as some of these companies could shut down,” said the Minister of Communications and Digital Economy, Dr Bosun Tijjani, at a press briefing at the State House, Abuja.

Tijjani was responding to queries after he led the leadership of Airtel and its Founding Chairman, Sunil Bharti Mittal, to an audience with President Bola Tinubu.

The minister said the benefits of raising tariffs outweighed the drawbacks.

He explained that the government had carefully considered the decision, given the critical role of the telecom sector in the economy.

He argued that the telecommunications value chain employs nearly half a million Nigerians, making it a significant contributor to the economy.

The minister noted that the government had been considering telecom operators’ requests for a tariff hike even before Tinubu assumed office.

However, the president insisted on a thorough evaluation before approving the review.

“Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike,” he said.

The government commissioned a study led by KPMG, which provided insights into the most sustainable tariff bracket.

Tijjani added that beyond affordability, the government wants “meaningful access” to telecommunications services, ensuring not just connectivity but also quality service delivery.

He said, “The NCC has been working to shift the focus not just to the quality of service but to the quality of experience.

“Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority.”

Tijjani also highlighted the government’s ongoing investments in telecommunications infrastructure.

These include the expansion of Nigeria’s fibre-optic network by 90,000 kilometres and the recent approval by the Executive Council for the construction of 7,000 additional telecom towers in rural areas.

He said that while the private sector must continue investing in the industry, the government is also stepping in to ensure Nigeria achieves universal and high-quality connectivity.

Meanwhile, the Chairman of Bharti Airtel, Mittal, said Nigeria is critical to the company’s future in Africa.

“Nigeria is the most important part of our Africa strategy. In fact, the entire African business rests on the back of Nigeria for Airtel,” he stated at the joint briefing.

Mittal cited the impact of Nigeria’s economic challenges, including currency devaluation, which saw Airtel’s business in the country shrink from nearly 40–45 per cent of its Africa portfolio to around 20–21 per cent.

However, he expressed optimism about reversing the trend.

“We are hoping, in the next two to two and a half years, to at least return to that level with more investments and more work here in the country,” he said.

Mittal noted that apart from India, Nigeria is the only country he directly oversees.

“We have to be very successful in Nigeria to have a real standing in Africa. Nigeria is important to us—personally important to me.

“It is our intention to bring Nigeria on par with what we are seeing in India in terms of digital innovation, digital connectivity, and financial inclusion,” Mittal stated.

He reaffirmed Airtel’s long-term commitment to Nigeria and assured citizens of the company’s role as a responsible corporate entity.

“I can assure you all that we come here as a force for good for this country, and you will continue to see us being a very, very responsible corporate citizen, contributing to Nigeria’s progress,” he said.

Mittal also announced Airtel’s award of scholarships to 10 Nigerian students for full engineering degrees at both undergraduate and postgraduate levels in top engineering institutions.

The company expects the Nigerian government to select the 10 students who will be sent to India for the programme.

According to the Airtel chairman, the Airtel Africa Scholarship Programme, under the Satya Bharti School Programme, began 15 years ago and has created a large ecosystem of 100,000 schoolchildren across various communities in India.

“So, we started 15 years ago with the primary school programme in India, where the focus was the girl child, free education, midday meals, computers, school uniforms, and we created a large ecosystem of over 100,000 schoolchildren across various villages in India. That programme still continues.

“We have since expanded it with university scholarships.

“The Satya Bharti Scholars Programme has grown significantly, and today, I am pleased to announce that I have handed over a letter inviting 10 Nigerian students for a full undergraduate and postgraduate degree in engineering at top institutions in India every year.

“We expect the Nigerian government to select and nominate these 10 students,” he added.

Mittal said Airtel remains committed to Tinubu’s Three Million Technical Talent Programme.

He said the company would support Nigeria in focusing on skills development and education while contributing meaningfully to society.

“That is our commitment—to be a part of that. Just like in India and other countries across Africa, if we can invest in skills and education, I believe we will contribute significantly to society,” he stated.