At the 2025 World Economic Forum in Davos, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, endorsed the recently approved 50% increase in telecommunications tariffs by the Nigerian Communications Commission (NCC). In his statement aired on Arise TV, Edun underscored the necessity of the tariff adjustment to ensure the sustainability of the telecom sector amid rising operational costs and inflation.
The NCC’s decision, which marks the first tariff increase in over a decade, was met with mixed reactions across the country. Edun defended the move, explaining that the hike is a critical step towards maintaining the viability of telecom services in Nigeria. “The 50 percent tariff adjustment is a situation that will be looked at on a forward-looking basis. As we go forward, there will continue to be reviews, consultations, and discussions in this area,” he articulated.
Edun emphasized that the tariff increase is not merely about revenue for telecom operators but also about fostering an environment where service quality can be significantly improved. “We want Telcos in Nigeria to thrive. The 50% upward tariff review is a start, and we will continue to negotiate,” he stated, highlighting the government’s commitment to fostering a thriving telecommunications sector that supports innovation, economic growth, and job creation.
The minister also called on telecommunications companies to match the price increase with a proportionate enhancement in service delivery. “It’s about ensuring that the tariff remains balanced and fair for both consumers and operators,” Edun noted. His remarks come at a time when the Nigeria Labour Congress (NLC) has criticized the decision, calling it an assault on workers’ welfare and hinting at potential nationwide boycotts of telecom services.
While the tariff hike aims to bridge the gap between operational costs and revenues, there has been significant public outcry over the affordability of telecom services, especially given Nigeria’s current economic challenges. Critics argue that this increase could disproportionately affect low-income households and small businesses, already struggling with the rising cost of living.
However, supporters of the tariff adjustment, including industry stakeholders, argue that it will allow operators like MTN and Airtel to invest in much-needed infrastructure upgrades, expand coverage, and enhance service quality, which has been lagging due to financial constraints.
The NCC has given operators a three-month window to recover losses, after which the focus will shift towards service quality improvements. “We remain committed to supporting Nigeria’s digital transformation agenda and driving inclusive growth,” said Karl Toriola, CEO of MTN Nigeria, reflecting the industry’s stance on the matter.
Edun’s backing of the tariff hike at an international forum like Davos underscores the government’s broader economic strategy, aiming to balance economic sustainability with consumer protection. As discussions and consultations continue, the coming months will be crucial in determining how telecom services evolve in Nigeria, particularly in terms of affordability and quality for the millions of consumers reliant on these services.