The Federal Government is addressing critical challenges affecting the sustainability of Nigeria’s telecommunications sector to ensure affordable and widespread 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 balancing the financial viability of the telecom sector with ensuring meaningful internet access 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 underscores the administration’s long-term goal of making internet access a fundamental human right and emphasizes the importance of investing in digital 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 conversation about tariff increases, the telecom industry requires holistic interventions. This includes government investments in infrastructure to support its growth and sustainability,” he explains.
Telecom operators have expressed concerns about rising operational costs, which they say threaten the industry’s sustainability. MTN Nigeria CEO, Karl Toriola, notes that inflation, currency devaluation, and surging energy costs have significantly impacted 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 KPMG’s insights and government efforts, the Federal Government aims to address these issues comprehensively. The telecom sector remains vital to Nigeria’s economic growth, and ensuring its sustainability while maintaining affordable access for citizens is a top priority.
