Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has thrown his weight behind the 50 percent telecom tariff hike recently announced by Nigerian Communications Commission (NCC).
This was as the minister also urged telecommunications companies to enhance service delivery in line with the price increase.
The Eagle Online reports that the NCC, the industry’s regulatory body, on Monday released a statement saying it had acceded to the requests of operators to hike tariffs.
This was contained in a statement signed by the Director of Public Affairs of the NCC, Dr. Reuben Muoka.
The NCC said it had approved a maximal increment of 50 percent tariff adjustments in response to prevailing operational costs.
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It said that this was less than the 100 percent demanded by some telecom operators.
It said its decision was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 to regulate and approve tariff rates and charges by telecommunications operators.
The NCC said that while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors
Reacting to the development, Edun described the tariff adjustment as essential for sustaining the sector amid rising operational costs and inflation.
Speaking to Arise TV on Thursday at the ongoing 2025 World Economic Forum in Davos, Switzerland, Edun said, “Inflation has increased, and it must be reflected in the business operations of telcos.
“While their prices are regulated, they cannot implement arbitrary tariffs.
“The rising cost of living must be considered, and I believe the 50 percent tariff adjustment is just the starting point.
“It’s about compromise, timing, and sequencing these necessary changes.
“Tariff rates have remained unchanged despite mounting pressures from inflation, exchange rate fluctuations, and the significant investments needed to meet rising consumer demand.
“These financial challenges have placed substantial strain on operators, threatening the long-term sustainability of the telecom sector, which is a vital contributor to Nigeria’s digital economy.”
The finance minister further emphasised the critical role of the telecommunications sector in Nigeria’s economy, calling it essential to the country’s infrastructure and business environment.
He added, “The government expects the tariff adjustment to result in better call termination, fewer dropped calls, and overall improved service quality.
“We want telcos operating efficiently, terminating calls seamlessly, and delivering high-quality services.
“At the same time, we want them to foster innovation, create jobs, and contribute to GDP.”
Additionally, Edun assured Nigerians that the tariff adjustment would be reviewed periodically to ensure it remains balanced and fair for both consumers and operators.
He reaffirmed the government’s commitment to fostering a thriving telecommunications sector that supports innovation, economic growth, and job creation.
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