By Mercy Aikoye
The Minister of Communication, Innovation and Digital Economy, Bosun Tijani, has attributed the 50% tariff increase by telecommunications companies to rising inflation and operational costs. Tijani made this statement during the 2025 budget defense session at the National Assembly.
The Minister emphasized that the tariff increase aligns with broader economic patterns, where higher tariffs lead to increased consumer prices due to additional costs on imported goods. However, he clarified that tariffs act as a sales tax, causing a one-off price increase rather than sustained inflation.
In addition to addressing the tariff increase, Tijani announced the Federal Government’s plan to invest N6 billion in deploying 90,000 kilometers of fiber optic cable. This initiative aims to expand the country’s capacity from 35,000 kilometers to 125,000 kilometers.
The planned deployment of more fiber optic cable is expected to foster growth in critical communication sectors in Nigeria. Tijani noted that many countries, excluding South Africa, Egypt, and Tunisia, have a significant deficit in cable infrastructure, presenting a significant business opportunity.
The Minister expressed his desire for Nigerian companies to not only lay fiber optic cables in Nigeria but also provide services to neighboring countries. This would create job opportunities for Nigerians and establish the country as a key player in the regional telecommunications industry.
Tijani highlighted the importance of strong communications in securing a society. He pointed out that private companies have historically driven investment in telecommunications infrastructure, but they tend to focus on areas with high economic activity.
The Minister acknowledged that the ministry is underfunded, which hinders its ability to track and collect revenue from telecommunications operators. He emphasized the need for adequate funding to enable the ministry to discharge its responsibilities effectively.
Senator Shuaib Salisu, Co-Chairman of the Senate Committee on Communication, recognized the significant contribution of the communication sector to Nigeria’s economic growth. He stressed the need to review the 2025 proposed budget of the Ministry to ensure it can deliver its mandate effectively.
The Committee adopted a motion requesting the Committees on Appropriation to consider an upward review of the Ministry’s 2025 budget, acknowledging the importance of adequate funding for the ministry’s initiatives.
