50% telecom tariff hike is only a start — Edun

Wale Edun, Nigeria’s Minister of Finance, has stated that the recently approved 50 percent tariff increase in the cost of telecommunications services is only a starting point. He noted that it is necessary to balance rising operational costs with the provision of quality services and the broader economic considerations for both consumers and the telecoms industry.

He said this during an interview on Arise News at the 2025 World Economic Forum (WEF) in Davos, Switzerland. Edun explained that the tariff review, the first in 12 years, was necessitated by inflation and a significant rise in telecom operators’ operational costs.

While operators had requested a 100 percent increase to meet cost demands, the Federal Government approved a 50 percent increment as a compromise. “There is a need to reflect the fact that over a 12-year period, there has been a rise in costs, there has been inflation, and that needs to be reflected,” Edun said.

“It is all about compromise and the timing and sequencing of these changes. As critical players in Nigeria’s economy, we want the telcos to operate efficiently, providing quality services, and contributing to GDP growth.”

Edun highlighted that the government’s primary objective is to ensure that telecom operators deliver efficient services, such as seamless call terminations and improved quality, while fostering growth in the sector. “We don’t want dropped calls. We want good quality services from them. And at the same time, we want them growing, employing people, and adding to the country’s GDP,” he stated.

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While acknowledging the backlash to the tariff increase due to its potential impact on the cost of living, Edun maintained that the government is committed to ongoing reviews and consultations to address these concerns and ensure that the adjustments remain beneficial for both consumers and operators.

“The cost-of-living increase that has occurred has to be reflected,” he explained. “But I believe that this 50 percent increase is a start, and it is a situation that will be looked at on a forward-looking basis as we go forward. There will continue to be review, consultation, and discussion in this area.”

The Minister also noted that telecom pricing is regulated to prevent arbitrary increases and the importance of dialogue and compromise in setting tariffs.

The review, which comes amid rising inflation and economic pressures, has elicited mixed reactions. While consumers have expressed affordability concerns, industry players see it as a long-overdue adjustment to sustain operations and improve service delivery.