by Uchechukwu Okoroafor, Abuja
The recent approval of a 50% tariff increase on telecommunication services by the administration of President Bola Ahmed Tinubu, through the Nigerian Communications Commission (NCC), has sparked widespread criticism from key stakeholders, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). This move, coming at a time when inflation has surged beyond 40% and the national minimum wage remains at a mere N70,000, is not just ill-timed but also deeply burdensome for the average Nigerian. It threatens the economic stability of households, small businesses, and rural farmers, all of whom rely on affordable communication services for their daily activities and survival.
Grow your business with us
The economic hardship of Nigerians, with inflation eroding the purchasing power of citizens, the cost of living has skyrocketed. The prices of essential goods and services, including food, transportation, and housing, have increased significantly. In this context, an additional financial burden in the form of higher telecom tariffs will only exacerbate the struggles of many Nigerians who are already finding it difficult to meet their basic needs. Communication services are no longer a luxury; they are a necessity for everyday life, education, business, and social connectivity. For a country where the minimum wage is set at N70,000, the increase in telecom tariffs translates to a substantial financial strain. Many low-income earners and informal sector workers, who heavily depend on mobile phones for business and personal communication, will be forced to cut back on their usage. This, in turn, will reduce their access to essential services, further widening the gap between the rich and the poor.
Nigeria’s economy is largely driven by small and medium-sized enterprises (SMEs), which rely on affordable telecom services for operations, customer outreach, and financial transactions. A 50% increase in tariffs will significantly raise their operational costs, reducing their profit margins and limiting their ability to expand. Many small businesses use mobile data for marketing, customer service, and e-commerce. Higher telecom costs will force them to either pass on these costs to consumers—who are already struggling with high inflation—or cut back on digital engagement, thereby limiting their market reach and revenue potential. Startups and young entrepreneurs, who often operate on lean budgets, will face even greater challenges. Many of them use social media platforms and other digital tools to promote their businesses. With higher data costs, their ability to sustain digital marketing campaigns and online customer engagement will be hampered, leading to reduced visibility and growth potential.
Nigeria’s agricultural sector, which employs a significant portion of the population, is increasingly dependent on mobile communication and digital services. Rural farmers use telecom services for market price updates, weather forecasts, and mobile banking transactions. Many rely on mobile phones to connect with buyers, suppliers, and agricultural extension services. An increase in telecom tariffs will make these services less accessible to them, thereby affecting their productivity and income. Higher telecom costs will also limit the ability of farmers to access new agricultural innovations and techniques that are disseminated through digital platforms. In a time when the government should be focusing on improving agricultural output to enhance food security, making communication more expensive for farmers is counterproductive.
Rather than increasing telecom tariffs, the government should be exploring ways to make communication more affordable and accessible. Lower telecom costs would have a multiplier effect on the economy, enabling more Nigerians to participate in digital trade, online education, and e-governance. It would facilitate the growth of digital financial services, which are critical for financial inclusion, particularly in rural areas where traditional banking infrastructure is weak. Affordable telecom services also enhance access to education and health services. Many students depend on mobile data for online learning, research, and virtual classes. Similarly, telemedicine services, which have gained traction in Nigeria, rely on mobile connectivity to provide remote healthcare consultations. A tariff hike would make these services more expensive and less accessible, ultimately hurting the nation’s human capital development.
The government must reconsider its stance on telecom tariffs and prioritize policies that support economic growth and social welfare. Instead of placing additional financial burdens on Nigerians, the administration should focus on fostering a competitive telecom industry that can offer quality services at affordable rates. Encouraging infrastructure investment, reducing multiple taxation in the telecom sector, and ensuring regulatory efficiency can help achieve this goal.
Furthermore, the government should consider subsidizing telecom services for low-income earners, students, and rural dwellers. Just as other essential utilities like electricity and water are subsidized in various parts of the world, telecom services should be treated as a fundamental necessity that deserves government intervention to ensure affordability.
A 50% increase in telecom tariffs is excessive and insensitive to the economic realities faced by millions of Nigerians. Given the country’s high inflation rate and low minimum wage, such a hike would further impoverish struggling families, stifle small businesses, and hinder rural farmers from accessing vital market information. The government must reverse this decision and adopt a more people-centered approach to telecom regulation. Affordable communication is not just a convenience—it is a necessity for economic growth, social inclusion, and national development. If Nigeria is to achieve its digital transformation goals, the government must ensure that telecom services remain within the financial reach of all citizens.