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Tariff increase: Why Ministry is stepping into telecom regulatory matters—Bosun Tijani 

Samson Akintaro by Samson Akintaro
January 18, 2025
in Sectors, Tech News
An open letter to Honourable Minister of Communications, Innovation and Digital Economy, Bosun Tijani

Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani.

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The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has said the Ministry is intervening in the ongoing discussions about telecom tariff increase to ensure that the interests of Nigerians are protected.

Tijani stated this while speaking during an interview on Arise TV on Friday.

Responding to a question of why the Ministry is dabbling into a regulatory issue that should be left to be handled by the Nigerian Communications Commission, Tijani said the Ministry supervises the NCC and its job is to cater to the people.

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Nairametrics earlier reported that the Minister had said that the tariff increment to be approved by the NCC should not be more than 60%.

“We’re stepping in to support ordinary Nigerians while ensuring businesses remain viable.  

“This ministry plays a significant role in ensuring that our digital economy thrives. No country can be prosperous today without a strong digital economy. It’s not just about businesses making money but also about ensuring our people have meaningful access to what has become a critical service,” he said.

Connectivity as a critical infrastructure 

While noting that connectivity is now critical to the survival of every Nigerian, the Minister said the government wants to ensure that businesses do not focus solely on profit but also provide critical services to citizens.

To that end, he said both the ministry and the NCC will focus on improving the quality of experience for users over the coming months.

“It’s not just about service quality but whether customers are getting the experience they pay for. Are customer service standards being met? Are stakeholders in the value chain delivering as they should?” he stated.

  • The Minister added that when people have access to connectivity, they have access to information, jobs, and opportunities.
  • According to him, many young Nigerians are now creating content, monetizing their skills on social media, or engaging in skill development through online platforms.
  • This, he said, extends to areas like entertainment, photography, and graphic design, adding that a strong digital economy backed by the right infrastructure enables these opportunities.

Investment in infrastructure 

Tijani said the government has also realized that it cannot leave the investment in the industry entirely to the private sector, which is why the government is now investing in infrastructure to help operators reach more people.

  • According to him, the private sector operators typically invest in areas with critical mass and economic activities because those are where they can generate revenue.
  • He said the government has, therefore, assessed the situation and set benchmarks for the quality of service expected across the country.

“For instance, we aim for 25 Mbps as a minimum in urban areas and 10 Mbps in rural areas. We want to reach nearly all Nigerians, wherever they are. 

“What we’re not doing is leaving people solely in the hands of Mobile Network Operators (MNOs). The government is stepping in to ensure that every part of Nigeria can be covered.  

“That’s why we’ve been raising funding for the 90,000 kilometers of fiber optic cable the country needs.” 

He noted that Nigeria currently has about 35,000 kilometers of fiber, which is far from adequate.

What you should know 

Dr. Tijani in May last year announced the approval of a Special Purpose Vehicle (SPV) by the Federal Executive Council to deliver 90,000 kilometers fibre project.

According to him, the government would be working with partners and stakeholders from the government and private sector to build the additional fibre optic coverage required to take Nigeria’s connectivity backbone to a minimum of 125,000km.

  • He added that that project would also help in increasing internet penetration in Nigeria to over 70% and reduce the cost of access to the internet by over 60%.
  • Through the project, Tijani said Nigeria would achieve the inclusion of at least 50% of the 33 million Nigerians currently excluded from access to the internet.
  • It is also expected to deliver up to 1.5% of GDP growth per capita raising GDP from $472.6 billion (2022) to $502 billion over the next 4 years.

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Tags: Bosun Tijanitariff increase
Samson Akintaro

Samson Akintaro

Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

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