The Federal Government is addressing critical and demanding situations affecting the sustainability of Nigeria’s telecommunications sector to ensure widespread secure connectivity for all citizens.
The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, receives an interim report from KPMG, outlining recommendations to address pressing issues, including tariff adjustments proposed by telecom operators.
Dr. Tijani highlights the government’s commitment to balance the monetary viability of the telecom sector while ensuring a meaningful network for Nigerians.
“Today, I received an interim report on the sustainability of Nigeria’s telecom sector. As a government, we are dedicated to striking a balance that supports the sector’s growth while ensuring affordable internet access for our people,” he states.
The Minister underlines the Administration’s long-term purpose to make web access a basic human right and emphasises the importance of making an investment in virtual infrastructure to achieve this vision.
Dr. Tijani reveals that the government is developing medium- and long-term strategies to address the sector’s challenges comprehensively. While acknowledging the demand for a tariff review, he stresses the need to tackle other underlying issues to ensure competitiveness and sustainability.
“Beyond the debate over rate increases, the telecommunications sector demands global interventions. This includes government investments in infrastructure for its expansion and sustainability,” he explains.
Telecom operators have expressed concern about emerging operating prices, which they say threaten the sustainability of the sector. Karl Toriola, CEO of MTN Nigeria, notes that inflation, currency devaluation and emerging energy prices have had a significant impact on the sector.
According to Toriola, diesel prices have jumped from N230 per liter pre-COVID to over N1,000 per liter by the end of 2024. Additionally, the official exchange rate has surged from N424.50 to around N1,550, leading to a fourfold increase in the cost of importing critical infrastructure like base stations.
With the wisdom of KPMG and the efforts of the government, the federal government intends to address these problems comprehensively. The telecommunications sector remains important to Nigeria’s economic growth, and ensuring its sustainability while remaining affordable to citizens is a very sensible priority.
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