I supports 50% telecoms tariff hike because inflation has increased -Wale Edun

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has backed the 50 per cent hike in telecom tariff, saying inflation should be reflected in the companies’ business operations.

There have been tons of reactions from stakeholders since the increase was announced on Monday. While the telecoms firms say the increase ought to be higher than 50 per cent, labour unions and the National Association of Telecommunications Subscribers (NATCOMS) believe the deal favours the companies and puts the masses at a disadvantage.

Edun told Arise TV on Thursday at the ongoing 2025 World Economic Forum in Davos, Switzerland that the government reached a compromise with the telecoms firms to ensure their businesses are sustainable.

“Inflation has increased and it must be reflected in the business operations of telcos. While their prices are regulated, they cannot implement arbitrary tariffs,” he said.

“The rising cost of living must be considered, and I believe the 50 per cent tariff adjustment is just the starting point. It’s about compromise, timing and sequencing these necessary changes.

“Tariff rates have remained unchanged despite mounting pressures from inflation, exchange rate fluctuations, and the significant investments needed to meet rising consumer demand.

“These financial challenges have placed substantial strain on operators, threatening the long-term sustainability of the telecom sector, which is a vital contributor to Nigeria’s digital economy.”

According to him, it is expected that the telecoms firms would improve their services.

“The government expects the tariff adjustment to result in better call termination, fewer dropped calls and overall improved service quality,” he said.

“We want telcos operating efficiently, terminating calls seamlessly and delivering high-quality services. At the same time, we want them to foster innovation, create jobs and contribute to GDP.”