Telecom Tariff Hike – Comparing Two Ministers in the Digital Age

The Past: Minister Pantami’s Vision of Affordable Connectivity

During Isa Ali Ibrahim Pantami’s tenure from 2019 to 2023, Nigeria’s telecommunications sector saw a series of transformative initiatives aimed at expanding access to affordable services for citizens. Pantami, known for his strong advocacy for digital inclusion, was at the forefront of several regulatory measures to reduce costs and make connectivity accessible for the masses. His administration saw the introduction of policies designed to ease the cost of data services and improve the regulatory environment for telecom operators.

One of Pantami’s landmark achievements was his push back for a reduction in the prices of internet services. Under his leadership, the National Information Technology Development Agency (NITDA) worked tirelessly to facilitate better broadband penetration, while also urging telecom operators to lower costs and enhance services. His pro-consumer stance was particularly evident in his interventions during moments of steep tariff hikes and his calls for telecom companies to focus on delivering value for consumers, especially in underserved regions.

However, the former minister’s legacy is not without its complexities. While Pantami’s administration worked to ensure a more affordable telecom environment, his tenure was also marked by the increasing operational challenges faced by telecom operators. With rising energy costs, inflation, and the devaluation of the naira, telecom companies struggled to maintain quality services. Despite these pressures, Pantami remained committed to affordability as a primary objective, often walking a tightrope between keeping costs low for consumers and ensuring the financial sustainability of telecom providers.

The Present: Dr. Bosun Tijani’s Innovative Approach and Sector Resilience

Dr. Bosun Tijani took office as Minister of Communications, Innovation, and Digital Economy in 2023, bringing with him a fresh perspective on Nigeria’s digital transformation agenda. With a background in technology and innovation, Tijani’s approach to the telecom tariff hike is distinct from Pantami’s. As the nation grapples with the reality of rising global costs and the need for infrastructure investment, Tijani has been less focused on reducing telecom costs in the short term, opting instead for policies that promote sustainable growth and innovation within the sector.

Tijani’s leadership is marked by an emphasis on innovation-driven economic growth. Under his guidance, Nigeria has seen a push towards technological advancements such as 5G adoption, the development of a digital economy ecosystem, and the promotion of startups in the tech space. His approach reflects a broader vision of positioning Nigeria as a leader in the digital economy, with a clear understanding that, at times, price hikes are a necessary component of sector growth, especially when they are linked to investments in infrastructure and digital services.

One key case study under Tijani’s tenure is the launch of the National Digital Economy Policy and Strategy 2025, which focuses on the expansion of broadband networks, internet of things (IoT) development, and strengthening cybersecurity frameworks. Tijani has also been vocal about the need to balance consumer interests with the operational realities faced by telecom operators. His administration is keen on ensuring that the sector attracts more investment and that telecom providers can sustain their operations despite the rising costs of doing business in Nigeria.

Case Study: The Impact of the Telecom Tariff Hike Under Tijani’s Leadership

In the wake of the telecom tariff hike, Tijani’s administration has been focused on explaining the need for price adjustments as a means to support ongoing investments in infrastructure and service delivery. Telecom companies like MTN and Airtel have cited rising costs of diesel, foreign exchange volatility, and energy supply constraints as factors contributing to the tariff hikes. While Pantami’s previous approach might have leaned toward reducing prices to maintain affordability, Tijani’s strategy emphasizes that the hike is a natural consequence of ensuring the continued growth and competitiveness of the sector.

One notable example is the government’s partnership with the private sector to enhance broadband penetration, which Tijani sees as essential to supporting Nigeria’s $1 trillion digital economy vision. Although the tariff increase has been met with criticism from some segments of the population, Tijani’s office has worked to reassure the public that the hike is a temporary measure aimed at securing long-term digital economic stability. The plan is for a future where data services are not only affordable but also faster, more reliable, and more widely available, especially in rural and underserved areas.

Reflecting on the Differences: A Changing Vision for Nigeria’s Digital Future

Reflecting on the leadership styles of Pantami and Tijani, it is evident that both ministers share a commitment to advancing Nigeria’s digital economy, but their strategies differ. Pantami’s tenure was characterized by an emphasis on immediate affordability and consumer protection, while Tijani’s approach is focused on fostering innovation and ensuring long-term sustainability.

Pantami’s era was a time when the primary focus was on lowering tariffs and making digital services more accessible. Under Tijani, however, the emphasis is shifting towards innovation, investment, and resilience, with a broader view of how the telecom sector can contribute to Nigeria’s economic diversification and technological advancements.

The telecom tariff hike serves as a reminder that the digital economy is a complex ecosystem, and both affordability and sector growth need to be balanced carefully. As Nigeria moves towards a more robust digital future, the contrasting approaches of Pantami and Tijani highlight the evolving nature of the nation’s telecom policies and the need for a leadership that adapts to changing global economic realities while striving to create a sustainable, digitally inclusive future for all Nigerians.