Communication Minister Attributes Rising Inflation, Operations Cost To 50% Tariff Increase

By Oluwakemi Kindness

Minister, Communication Innovation and Digital Economy, Tijani Bosun, has attributed the recent 50% increase in telecommunications tariffs to global inflation and rising operational costs.

The Minister while appearing before the joint committees on communication added that the decision aligns with broader economic patterns, where tariffs can lead to higher consumer prices due to the added costs on imported goods.

Speaking to journalists moments after defending his Ministry’s budget of N12 billion for 2025, Bosun stated that 50% adjustment aligns with broader economic trends.

According to the Minister historically, tariffs act as a sales tax, causing a one-off price increase rather than sustained inflation.

Also the Minister further informed that the Federal Government is planning to invest N6 billion 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 him, the planned deployment of more Fibre Optic cable is an initiative aimed at fostering growth in critical communication sectors in the country.

He added, “Because outside of South Africa and maybe Egypt, perhaps Tunisia, a lot of countries have a serious deficit in cable. This is going to become a big business. We want Nigerian companies not only to lay in Nigeria, but become companies that will provide these services for neighboring countries as well.

“And we want our people to become the employees that will go out and do this work. We’ve seen more companies like South Africa being off the back of global business. They can now create security, but not only have to.

“So this is something we focus on. On security, we’ve seen a problem. You cannot secure a society if you don’t have strong communications.

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.

END