The Cloud Network Foundation (CNF), a leading non-governmental organization in Nigeria, has called on the federal government to reassess the recently approved 50% hike in telecoms tariffs, warning of its potential economic and social repercussions.
The increase, which was announced by the Minister of Communications and Digital Economy and subsequently endorsed by the Nigerian Communications Commission (NCC), has sparked widespread criticism from key stakeholders, consumer advocacy groups, and industry players.
Reacting to the growing public outcry, the Chairman of CNF, Mr. Abimbola Tooki, expressed concerns over the timing of the tariff adjustment, noting that it comes at a period when inflation is at an all-time high, significantly eroding the purchasing power of Nigerians.
Tooki emphasized that the federal government must take into account the economic realities faced by citizens before implementing policies that could further strain their finances. He described the tariff hike as “insensitive and exploitative,” arguing that it could deepen the economic challenges facing millions of telecoms users across the country.
“The sharp increase in telecoms tariffs is being perceived as an attempt to further disempower the people,” he stated. “This move could inadvertently fuel civil society agitation, as it reinforces the narrative that the government is seeking to stifle the voice of the masses rather than empower them.”
Highlighting the critical role of affordable telecom services in national development, Tooki pointed out that low telecoms tariffs have had far-reaching benefits, including reducing unnecessary travel, easing road congestion, and fostering social connections through seamless communication.
“Telecoms has become an enabler of economic prosperity,” he noted. “Beyond its social advantages, affordable telecoms services have supported e-commerce, digital trade, and remote work, creating new economic opportunities at a time when traditional job opportunities are declining.”
He warned that a sudden and sharp increase in tariffs could deter many Nigerians, particularly small business owners and low-income earners, from fully utilizing telecom services, thereby hindering economic growth.
While acknowledging the rising cost of doing business in Nigeria, Tooki advocated for a gradual approach to any telecoms tariff adjustments rather than a sudden 50% hike. He stressed that addressing industry-specific financial challenges could help cushion the impact on operators without unduly burdening consumers.
He listed 39 different taxes and levies imposed on telecom operators by various levels of government, including Right of Way (RoW) charges, infrastructure maintenance fees, business premises levies, and environmental fees. These multiple taxations, he argued, have contributed significantly to the high cost of doing business in the sector.
Tooki called for a comprehensive review and harmonization of these taxes under a unified framework to ease the financial burden on operators and, ultimately, consumers.
The CNF Chairman also urged the Nigerian Governors Forum to standardize the Right of Way (RoW) fees across all states, ensuring a single template that telecom operators can work with.
Furthermore, he called on the government to facilitate the resolution of unsettled debts between banks and telecom operators, which could free up substantial funds for investment in network expansion and service improvements.
Tooki reiterated that while the CNF recognizes the financial challenges telecom operators face, imposing a steep tariff increase without addressing systemic inefficiencies and multiple taxation will only compound the struggles of ordinary Nigerians.
He urged the federal government to engage stakeholders in meaningful dialogue to develop a more sustainable approach to telecom pricing—one that balances industry needs with consumer affordability.
