No Telecom Services’ Threat Returns As Ex-Minister Shittu Justifies 50% Tariff Increase

Former Minister of Communications, Adebayo Shittu, has asserted that the Nigerian Communications Commission’s (NCC) proposal to increase telecom tariffs by 50% is crucial for the country’s economic sustainability.

Speaking during an interview on Eagle 102.5 FM in Abeokuta on Saturday, Shittu emphasized that the tariff adjustment is non-negotiable, warning that Nigeria risks reverting to an era without functional telecom services if operators are unable to maintain their operations.

Shittu argued that expecting telecom companies to maintain the same pricing structure for over a decade, despite skyrocketing costs in other sectors, is unrealistic. He pointed to factors such as rising electricity costs, mast construction, and security expenses as key reasons behind the proposed hike.

Criticizing the Nigeria Labour Congress (NLC) for its planned industrial action on February 4, Shittu described the protest as unnecessary, stressing that the tariff increase is vital to keep telecom companies operational and profitable.

“Nigeria can be a difficult place when it comes to accepting hard truths. We’ve forgotten there was a time when telecom services were scarce, and people had to pay up to ₦50 just to make a call at designated locations,” Shittu recalled.

He added, “Telecom companies were never invited to play Father Christmas. They are here to do business, make profits, and improve communication. Back then, we paid ₦4 per SMS in Nigeria, while people in Benin Republic paid the equivalent of ₦50, and in Algeria, it was as high as ₦150.”

Highlighting the impact of fuel subsidy removal and other economic shifts, Shittu noted that inflation has affected all sectors, and telecoms are no exception. “Do we want the telecom industry to collapse? If they can’t sustain operations, they’ll shut down, and we’ll return to square one,” he warned.

“For me, the 50% increase is not just justified—it’s essential. Telecom prices have remained stable for over a decade. Can we say the same for any other sector?” he concluded.