The Cloud Network Foundation (CNF), today asked the Federal Government to reconsider the 50% hike in telecoms tariff approved by the Nigerian telecoms regulator, due to what the leading non-governmental organisation (NGO) warns as “its potential economic and social repercussions.”
The increase, which was announced by the Minister of Communications and Digital Economy and subsequently endorsed by the Nigerian Communications Commission (NCC), has sparked widespread criticism from key stakeholders, consumer advocacy groups, and industry players, CNF says in a statement made available to Technology Times.
Reacting to the growing public outcry, Mr. Abimbola Tooki, Chairman of CNF, is concerned about the timing of the tariff adjustment that “comes at a period when inflation is at an all-time high, significantly eroding the purchasing power of Nigerians.”
“The sharp increase in telecoms tariffs is being perceived as an attempt to further disempower the people,” according to the CNF leader. “This move could inadvertently fuel civil society agitation, as it reinforces the narrative that the government is seeking to stifle the voice of the masses rather than empower them.”
Mr. Abimbola Tooki, Chairman of Cloud Network Foundation (CNF).
CNF: 50% telecoms tariff hike is insensitive and exploitative
The Federal Government, Mr. Tooki says, must take into account the economic realities faced by citizens before implementing policies that could further strain their finances.
He says that the “insensitive and exploitative,” tariff hike could deepen the economic challenges facing millions of telecoms users across the country.
“The sharp increase in telecoms tariffs is being perceived as an attempt to further disempower the people,” according to the CNF leader. “This move could inadvertently fuel civil society agitation, as it reinforces the narrative that the government is seeking to stifle the voice of the masses rather than empower them.”
Highlighting the critical role of affordable telecoms services in national development, Tooki explains that low telecoms tariffs have had far-reaching benefits, including reducing unnecessary travel, easing road congestion, and fostering social connections through seamless communication.
“Telecoms have,” Mr Tooki says, “become an enabler of economic prosperity.” He reckons that “beyond its social advantages, affordable telecoms services have supported e-commerce, digital trade, and remote work, creating new economic opportunities at a time when traditional job opportunities are declining.”
The CNF leader warns that a sudden and sharp increase in tariffs could deter many Nigerians, particularly small business owners and low-income earners, from fully using telecoms services, thereby hindering economic growth.
Mr Tooki says that 39 different taxes and levies have been imposed on telecoms operators by various levels of government, including Right of Way (RoW) charges, infrastructure maintenance fees, business premises levies, and environmental fees. “These multiple taxations,” he adds, “have contributed significantly to the high cost of doing business in the sector.”
While acknowledging the rising cost of doing business in Nigeria, Tooki advocates a gradual approach to any telecoms tariff adjustments “rather than a sudden 50% hike.”
CNF stresses that addressing industry-specific financial challenges could help cushion the impact on operators without unduly burdening consumers.
Mr. Tooki says that 39 different taxes and levies have been imposed on telecoms operators by various levels of government, including Right of Way (RoW) charges, infrastructure maintenance fees, business premises levies, and environmental fees. “These multiple taxations,” he adds, “have contributed significantly to the high cost of doing business in the sector.”
CNF calls for a comprehensive review and harmonisation of these taxes under a unified framework to ease the financial burden on operators and, ultimately, consumers.
The CNF Chairman also wants the Nigerian Governors Forum to standardise the Right of Way (RoW) fees across all states by “ensuring a single template that telecoms operators can work with.”
Furthermore, he called on the government to facilitate the resolution of unsettled debts between banks and telecoms operators, “which could free up substantial funds for investment in network expansion and service improvements.”
While the CNF recognises the financial challenges that telecoms operators face, Mr Tooki says that “imposing a steep tariff increase without addressing systemic inefficiencies and multiple taxation will only compound the struggles of ordinary Nigerians.”
He urges the Federal Government to engage stakeholders in meaningful dialogue to develop a more sustainable approach to telecom pricing—”one that balances industry needs with consumer affordability.”
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