Dr. Bosun Tijani, minister of Communications and Digital Economy, has said that the federal government approved a 50 per cent tariff hike for telecommunications services to avert job losses and prevent multinational firms from leaving the country.

Dr. Bosun Tijani, minister of Communications and Digital Economy

Tijani, provided this clarification on Thursday, shortly after leading the management of Airtel Nigeria to the Presidential Villa in Abuja for a meeting with President Bola Tinubu.

He explained that the decision aligns with the need to ensure the sustainability of foreign investment amidst rising operational costs and inflationary trends.

“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, and when you weigh that, it’s also not the best outcome for the economy,” the minister said.

Tijani noted that the government carefully considered the decision, given the critical role the telecoms sector plays in the country’s economy.

He highlighted that the sector, including its entire value chain, employs nearly half a million Nigerians, making it a significant contributor to national development.

He further revealed that the request for a tariff increase had been pending before the current administration took office, but President Bola Tinubu insisted on a thorough evaluation before approving any adjustments.

“This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike,” he said.

“To determine the optimal rate for the adjustment, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff increase.”

Tijani emphasised that the government’s focus extends beyond affordability to ensuring “meaningful access” to telecommunications services.

This involves not only providing connectivity but also guaranteeing high-quality service delivery, ensuring that Nigerians receive the full benefits of digital connectivity.

“The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority,” he stated.

To achieve its objectives, Tijani highlighted the government’s continued investment in telecommunications infrastructure, aiming to enhance connectivity and support economic growth across Nigeria.

“This includes 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.”

The minister affirmed that while private sector investment in the telecoms industry remains crucial, the government is actively intervening to guarantee universal access to high-quality connectivity across Nigeria.

This collaborative approach aims to bridge connectivity gaps and improve service quality nationwide.

The Federal Government yesterday disclosed plans to build 7,000 new communication towers in rural areas to expand access to telecommunications services and improve digital connectivity across the country.

Dr. Bosun Tijani,  minister of Communications, Innovation, and Digital Economy, disclosed this after leading Airtel executives on a visit to President Bola Tinubu at the Presidential Villa in Abuja.

According to Dr. Tijani, the government is committed to ensuring that all Nigerians, especially those in underserved areas, have meaningful access to quality telecommunication services.

The Minister noted that the decision to invest in rural infrastructure aligns with the administration’s broader goal of improving digital inclusion and economic opportunities for all citizens.

Tijani said: “The priority for this government is meaningful access. We don’t want our people to just have access to telecommunication services; we want it to be of high quality. That is why the NCC has been working thoroughly to ensure that we shift the focus not just to quality of service, but to quality of experience.”

The minister explained that the approval for the construction of 7,000 new towers was granted by the Federal Executive Council, FEC, as part of a broader strategy to bridge the digital divide.

He said the investment will complement the ongoing deployment of 90,000 kilometers of fiber-optic cables across the country.

Dr. Tijani also addressed the recent approval of a 50 percent increase in telecom tariffs, clarifying that the decision was necessary to sustain businesses in the sector and prevent job losses.

He revealed that the government conducted a study led by KPMG to determine the optimal tariff adjustment while balancing affordability for consumers and sustainability for telecom operators.

“Some of these decisions are difficult, but it is our responsibility to look out for our citizens, including individuals and corporate entities. If we chose not to allow any tariff increase, we risked losing jobs and seeing companies shut down, which is not the best outcome for the economy,” he explained.

The minister reiterated the government’s commitment to fostering an enabling environment for private sector investment in digital infrastructure while ensuring that public investments support nationwide connectivity.

The construction of the new towers is aimed at significantly enhancing network coverage in remote areas, allowing millions of Nigerians to benefit from improved mobile and internet services.

Also speaking, Chairman of Airtel Africa, Sunil Bharti Mittal, said Airtel Nigeria is the soul of its operations in Africa, with the potential to match India’s advancements in digital innovation, connectivity, and financial inclusion.

Emphasising that Airtel’s success in Nigeria is crucial to its overall success in Africa, Mittal stressed that Nigeria’s strategic importance underscores Airtel’s objective,which is to drive growth and transformation across the African continent.

He said: “Nigeria is the most important part of our Africa strategy. In fact, the entire Africa rests on the back of Nigeria for Airtel.

“And Nigeria is important to us, personally important to me. I watch over one country other than India, personally myself. That is Nigeria. I come back here from time to time, and it’s in our intention to make Nigeria at par with what we are seeing in India in terms of digital innovation, digital connectivity and financial inclusion.

“I can assure all of you here today that we come here with force for good for this country, and you will continue to see us being a very, very responsible corporate citizen contributing to the well being of this country.”

He highlighted the company’s significant investments in Nigeria and its plans for further expansion, including the rollout of 5G services and additional investments of $700 million over the next two years.

Mittal lauded President Tinubu-led government on recent economic reforms, which he said will attract more foreign investment and improve business conditions in Nigeria.

Mittal also spoke on Airtel Africa’s award of scholarship to 10 Nigerian students for full Engineering degrees both at the undergraduate and post graduate levels in top engineering institutions.

He noted that the company expects the Nigerian government to take charge of selecting the 10 students who will be sent to India as part of the fellowship program.

According to Bharti, the Airtel Africa scholarship programme, which is under Satya Bharti School Programme began 15 years ago, has created a large ecosystem of 100,000 school children across various communities in India.

“So, we started 15 years back with the primary school program in India, where the focus was girl child, free education, midday meal, computer in the school uniforms, and we created nearly a large ecosystem of over 100,000 school children going into various villages in India. And that program still continues. We have then stepped it up with scholarships in the universities.

“That programme of Satya bharthi scholar has also started in a big way. And today I can share with you I was very pleased to hand over my letter inviting 10 Nigerian students for a full degree, both undergrad and post grad degrees in engineering in top institutions in India every year.

“And we would expect the Nigerian government to be choosing and selecting those 10 students who sent to India.”

On Airtel’s commitment to the 3 Million Technical Talent programme of the present administration, Mittal said that Airtel aims to support Nigeria in diverting some attention to areas such as Skills and education, while also contributing to the society in a very meaningful way.

“That’s a commitment to be a part of that. And we believe that just like India and many other countries, including in Africa, if we can divert some attention into the area of Skilling and education, I think we’ll contribute To the society in a very meaningful way.”

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