
The recent hike in telecom tariffs in Nigeria has sparked concerns about its impact on consumers already struggling with rising costs. While telecom operators argue that the increase is necessary for business sustainability amid inflation and increased operational expenses, many Nigerians fear it will further strain their finances.
For over 12 years, the cost of telecom services in Nigeria has remained relatively stable, despite rising inflation and other economic challenges. This has created an unsustainable situation for telecom companies, many of which face escalating costs from energy price hikes and the increasing cost of imported equipment.
According to Teslim Shitta-Bey, Chief Economist at Proshare Nigeria, a tariff hike is seen as the only viable option for telecom companies to maintain profitability and ensure future growth.

Minister of Communications, Bosun Tijani, confirmed the tariff increase, though not at the 100% rate originally proposed by operators. He emphasized the government’s role in balancing consumer protection with ensuring telecom companies remain profitable enough to continue investing in the sector.
The Private Telecommunications and Communications Senior Staff Association (PTECSSA) also acknowledged the challenges, warning that while the union opposes tariff hikes, the current economic pressures make it difficult for operators to survive without them. The removal of subsidies, along with hikes in electricity tariffs, has drastically raised operational costs for telecom companies, potentially affecting workers’ salaries and overall industry stability.
For consumers, the tariff hike is an added burden. Many Nigerians are already struggling with inflation, and the increase in telecom costs threatens to worsen financial strains. On social media, Nigerians expressed frustration, questioning why telecom companies, despite their revenues, fail to provide satisfactory services. Some critics argue that the companies’ profitability comes at the expense of quality service.
The impact on consumers, particularly those in sectors like the creative economy—where affordable telecom services are essential for skit makers, musicians, and students—could be significant. Higher costs may eliminate any gains from the minimum wage increase, further exacerbating financial challenges across the country.
While analysts agree that a tariff hike is necessary for the survival of the telecom sector, the financial strain on the average Nigerian is expected to intensify, particularly as the broader economic climate continues to put pressure on households.