At the ongoing 2025 World Economic Forum in Davos, Switzerland, Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, has expressed strong support for the recent tariff hike approved for the telecommunications sector. Speaking to Arise TV, Edun highlighted that the 50% tariff adjustment is essential for the sustainability of the sector amid rising operational costs and inflation.
Edun explained that the price increase is necessary due to the impacts of inflation, stressing that while telecommunications prices are regulated, they must reflect the rising cost of living and operational expenses. “Inflation has increased, and it must be reflected in the business operations of telcos,” he said, adding that this adjustment is only a starting point and is part of a strategic approach to address the sector’s challenges.
The finance minister underscored the importance of the telecommunications sector to Nigeria’s economy, noting its role in infrastructure development and business operations. He emphasized that the government expects the tariff adjustment to improve service quality, including better call termination, fewer dropped calls, and enhanced overall performance. “We want telcos operating efficiently, delivering high-quality services, and contributing to innovation and job creation,” Edun added.
The tariff hike is set to be implemented in February 2025, and Nigerian telecom operators, including MTN and Airtel, have promised that the increase will enable them to invest in infrastructure to improve service quality. The President of the Association of Telecommunications Companies of Nigeria, Gbenga Adebayor, also highlighted the need to modernize outdated systems and optimize telecom equipment to enhance the user experience.
MTN, Nigeria’s largest telecom operator, expressed that the tariff adjustment is a significant step towards ensuring long-term sustainability and growth for the telecom sector. CEO Karl Toriola emphasized that the increase would help the company maintain the necessary investments to provide reliable, high-quality services. “This adjustment will enable us to continue supporting Nigeria’s digital transformation agenda and driving inclusive growth,” he said.
Similarly, Airtel Nigeria’s CEO, Dinesh Balsingh, defended the tariff hike, describing it as crucial for the survival and expansion of the telecommunications industry. Balsingh noted that the increase reflects a balanced approach to safeguarding both the sector’s sustainability and consumer interests. “It will enable us to continue investing in network infrastructure and expand coverage to meet the evolving needs of our customers,” he said.
Both MTN and Airtel assured Nigerians that the price increase is aimed at ensuring superior service delivery, fostering innovation, and enhancing the overall quality of telecommunications services in the country. The companies remain committed to contributing to Nigeria’s economic growth and the advancement of the digital economy.
As the telecom industry navigates the impact of the tariff hike, the government has promised periodic reviews to ensure fairness and balance between consumers and operators. With a focus on long-term sustainability, the sector is expected to continue playing a vital role in Nigeria’s economic development.
