RISING INFLATION, OPERATIONS COST NECESSITATES 50% TARIFF INCREASE- MINISTER 22-01-25
By Sadiq Aminu The Minister of Communication, Innovation and Digital Economy, Mr. Bosun Tijani says the 50% increase by telecommunication companies in the country was caused by inflation and rising operation cost.
Mr. Tijani stated this while responding to questions at the 2025 budget defence session by the joint House of Representatives and Senate Committees on Communication
The Minister explained that the move was in tandem with broader economic patterns, where tariffs lead to higher consumer prices as a result of additional costs on imported goods adding that, tariffs act as a sales tax, causing a one-off price increase rather than sustained inflation.
He said the Federal Government is planning to invest to deploy 90,000 Kilometres of Fiber Optic cable to expand the country’s capacity from 35,000 Kilometers to 125,000 Kilometers
According to the Minister, the planned deployment of more Fibre Optic cable is an initiative aimed at fostering growth in critical communication sectors in the country.
The Minister however informed the Committee that, the ministry is not adequately funded to discharge its responsibilities.
“The ministry is underfunded. It’s not as funded as NCC. So the ministry, each time, they’re unable to actually track all the people that are using, all the people that are meant to pay on time.
“They don’t have appropriate software to do the tracking. So because of this, they’re unable to spend the money. We know that this ministry, outside of the agency, can actually generate much more revenue if we have the resources to chase up on those things.
In his remark, the Co-Chairman, Senate Committee on Communication, Senator Shuaib Salisu, highlighted the contribution of the communication sector to the economic growth of the nation.
He stressed the need to review the 2025 proposed budget of Ministry to enable it to deliver its mandate effectively and efficiently.
The Committee therefore adopted a motion requesting the Committees on Appropriation to consider upward review of the Ministry’s 2025 budget.