The Federal Government has defended its decision to approve a 50 per cent tariff hike for telecommunications services, citing job protection for Nigerians and the need to prevent multinational firms from leaving the country.
The Minister of Communications and Digital Economy, Dr Bosun 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.”