The dust around the Federal Government’s approved 50 per cent tariff hike on telephony services in the country has not settled as a non-governmental organisation in Nigeria, the Cloud Network Foundation (CNF) has called on the Federal Government to reassess the hike, warning of 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.

Reacting to the growing public outcry, the Chairman of CNF, Abimbola Tooki, expressed concerns over the timing of the tariff adjustment, noting that it comes at a period when inflation is at an all-time high, significantly eroding the purchasing power of Nigerians.

Tooki emphasised that the Federal Government must consider the economic realities faced by citizens before implementing policies that could further strain their finances. He described the tariff hike as “insensitive and exploitative,” arguing that it could deepen the economic challenges facing millions of telecom users across the country.

Highlighting the critical role of affordable telecom services in national development, Tooki pointed out that low telecom tariffs have had far-reaching benefits, including reducing unnecessary travel, easing road congestion, and fostering social connections through seamless communication.

He warned that a sudden and sharp increase in tariffs could deter many Nigerians, particularly small business owners and low-income earners, from fully utilising telecom services, thereby hindering economic growth.
While acknowledging the rising cost of doing business in Nigeria, Tooki advocated for a gradual approach to any telecoms tariff adjustments rather than a sudden 50 per cent hike. He stressed that addressing industry-specific financial challenges could help cushion the impact on operators without unduly burdening consumers.

He listed 39 different taxes and levies imposed on telecom 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 argued, have contributed significantly to the high cost of doing business in the sector.

Tooki called for a comprehensive review and harmonisation of these taxes under a unified framework to ease the financial burden on operators and, ultimately, consumers.