Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has thrown his weight behind the recent 50% increase in telecom tariffs, arguing that the adjustment aligns with inflationary pressures impacting the telecom sector.
A Compromise to Sustain the Telecom Industry
Speaking on Thursday during an interview with Arise TV at the 2025 World Economic Forum in Davos, Switzerland, Edun explained that the tariff hike was a compromise aimed at balancing the sustainability of telecom operators and the interests of consumers.
“Inflation has risen significantly, and this must be reflected in the business operations of telecom companies.
Although their prices are regulated, they cannot implement arbitrary tariffs,” Edun stated.
He emphasized that the 50% adjustment is just a starting point in addressing the financial challenges faced by telecom operators, which include inflation, exchange rate fluctuations, and the need for substantial investments to meet growing consumer demand.
Mixed Reactions from Stakeholders
The announcement of the tariff increase has sparked a wave of reactions from stakeholders.
While telecom companies argue that the hike should exceed 50% to account for operational costs, labor unions and the National Association of Telecommunications Subscribers (NATCOMS) have criticized the move, claiming it disproportionately impacts the masses.
Edun, however, maintained that the adjustment was necessary to ensure the long-term sustainability of the telecom sector, a critical pillar of Nigeria’s digital economy.
Government’s Expectations
The minister assured Nigerians that the tariff increase would lead to significant improvements in service quality, including better call termination and reduced instances of dropped calls.
“The government expects the adjustment to translate into improved services. We want telecom operators to deliver seamless call termination, enhance service quality, and drive innovation.
At the same time, they must foster job creation and contribute to Nigeria’s GDP,” Edun added.
Looking Ahead
As the debate continues, Edun reiterated the importance of timing and compromise in implementing such changes, highlighting that the government remains committed to protecting consumer interests while supporting the growth of the telecom industry.
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