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Inflation, Rising Costs Behind 50% Telecom Tariff Increase – Minister
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…FG to invest ₦6bn in fibre optic expansion
By Gloria Ikibah
The Minister of Communication, Innovation, and Digital Economy, Dr. Bosun Tijani, has attributed the recent 50 percent increase in telecommunication tariffs to inflation and rising operational costs.
The Minister disclosed this during the 2025 budget defense session held by the joint House of Representatives and Senate Committees on Communication, on Tuesday in Abuja.
Explaining the rationale behind the tariff hike, Dr. Tijani stated that the move aligns with broader economic trends where increased tariffs lead to higher consumer prices due to added costs on imported goods.
The Minister also revealed plans by the Federal Government to invest ₦6 billion in the deployment of 90,000 kilometers of fiber optic cables, increasing Nigeria’s current coverage from 35,000 kilometers to 125,000 kilometers, and he described this initiative as a critical step towards boosting communication infrastructure and fostering growth in key sectors of the economy.
“Tariffs act as a sales tax, causing a one-off price increase rather than sustained inflation.
“Outside of South Africa and maybe Egypt or Tunisia, many African countries face a significant deficit in fiber optic cable coverage.
“This is going to become a big business. We want Nigerian companies not only to lay cables within Nigeria but also to provide these services for neighboring countries. And we want our people to be the workforce driving this transformation,” he said.
Dr. Tijani who emphasised the importance of communication infrastructure in ensuring security and economic development, highlighted the historical reliance on private investment for telecommunications infrastructure, which has often prioritized profitable urban areas over rural communities.
“Private companies only invest where they see potential returns.
“They use tools like night-time satellite data to identify economic activity, represented by lights, and focus their investments in those areas. This has left many underserved regions without proper infrastructure. Addressing this disparity is a priority for us,” he explained.
The Minister, however, lamented the inadequate funding of the Ministry, which he said hampers its ability to fulfill its mandate effectively.
“The Ministry is underfunded compared to agencies like the NCC. We lack the necessary resources and software to track revenue-generating activities efficiently. With better funding, the Ministry could generate significantly more revenue and enhance its impact,” he said.
In his remarks, Senator Shuaib Salisu, Co-Chairman of the Senate Committee on Communication, acknowledged the critical contributions of the communication sector to Nigeria’s economic growth. He called for a review of the Ministry’s 2025 proposed budget to ensure it is adequately equipped to deliver on its mandate.
Following discussions, the Committee adopted a motion urging the Committees on Appropriation to consider an upward revision of the Ministry’s budget for 2025.
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Osun Govt finally speaks As Court orders banks to freeze state accounts
The Osun State Government has said it has filed an application before the Federal High Court in Lagos seeking to set aside the ex parte order restricting transactions on accounts operated by the state government over a $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
The government also assured the public that it had commenced necessary legal steps to vacate the order and protect the state’s interests through a judicial review of the arbitration award.
In a statement issued on Sunday and signed by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the government described the order as having been obtained through what it called non-disclosure of material facts to the court.
According to the statement, the arbitration award Gamji sought to enforce was also allegedly affected by several irregularities, prompting the state government’s legal team to approach the Lagos State High Court to challenge the award.
The government said the ex parte order of September 9, 2026 referenced an alleged arbitral award, but maintained that no such award was made against the state government in July 2024.
It clarified that the only arbitral award against the state government was issued in July 2026 and that the award was already being challenged by the government before the Lagos State High Court.
The government traced the dispute to a 2017 contract awarded during the administration of former Governor Adegboyega Oyetola. It said the administration rejected a variation request by Gamji, particularly over the company’s claim that the state was indebted to it in the sum of $15,982,638.22.
The matter subsequently proceeded to arbitration, which the state government alleged was improperly handled in favour of Gamji, while the state was denied a fair hearing and full participation in the process.
The government said its legal team had already filed a suit at the Lagos State High Court on September 1, 2026, seeking to set aside the arbitral award before Gamji approached the Federal High Court.
It added that a motion on notice seeking to suspend enforcement of the award pending the determination of the suit was also filed and served on Gamji and its counsel.
According to the state government, Gamji was therefore aware that the award was being challenged before a competent court when it approached the Federal High Court to seek enforcement.
The government further alleged that Gamji failed to disclose to the Federal High Court that the validity of the award was already being challenged before the Lagos State High Court and that the company had been served with an application seeking to suspend enforcement pending the determination of the case.
The state government disclosed that it had also filed a motion on notice seeking to set aside the September 9 order and informed the Federal High Court of the circumstances surrounding the arbitration proceedings and the pending challenge.
It, however, said it would refrain from making further comments on the merits of the case because the matter remains sub judice.
News
Sad development as abductors beat up 20 corp members, reduce ransom from N50m to N5m each
The 20 National Youth Service Corps (NYSC) members kidnapped by gunmen in Imo State have allegedly been subjected to physical ass@ult by their captors, with the kidn@ppers reportedly reducing their ransom demand to N5 million per victim.
The graduates were abducted on Thursday while travelling from Ibadan to their NYSC orientation camps in Abia and Akwa Ibom states. They were reportedly att@cked along the Owerri-Onitsha Road in Umunoha, Imo State, while travelling in two buses.
A relative of one of the victims, Alhaja Alimot Akande, said the abd¥ctors initially demanded N50 million for each victim but had now reduced it to N5 million.
“They are still demanding N5 million. They have come down to N5 million each,” she said.
Akande also alleged that the abductors had started beating the victims, including the women.
When I spoke to my sister, they started beating them since yesterday,” she said.
Asked if the female victims were also being assaulted, she replied: “They are not sparing anybody. They are beating all of them.”
She said one victim was also allowed to speak with his father, with the abd¥ctors reportedly monitoring the calls to assess the family’s ability to raise the ransom.
Meanwhile, the Oyo State Government said it was working with the Imo State Government and security agencies to secure the victims’ release.
Oyo State Commissioner for Information, Prince Dotun Oyelade, said the government was drawing on its experience from the recent Oriire abduction to assist efforts in Imo State.
“Oyo State Government had not and will not abandon its citizens. We will continue to work endlessly and desperately to secure the release of our children,” he said.
News
Painful! Varsity VC dies 48hrs after taking office
Tansian University, Umunya, Anambra State, has been thrown into mourning following the sudden death of its newly inaugurated substantive Vice-Chancellor, Professor Carter Dike Umeoduagu, barely 48 hours after assuming office.
Umeoduagu was formally sworn in as the substantive Vice-Chancellor of the university on Thursday, October 1, 2026, marking the commencement of his tenure.
However, the professor reportedly took ill on Saturday, October 3, two days after his assumption of office, and subsequently died.
His sudden death has sent shock waves through the university community, particularly coming at a time when the institution has been facing leadership challenges.
The development is also coming amid recent controversy over the leadership of the university, including disputes surrounding the tenure of the former Vice-Chancellor, Professor Eugene Okoye Nwadialor, and the emergence of an acting leadership structure.
The death of Umeoduagu, coming almost immediately after his formal assumption of office, has added a tragic dimension to the university’s recent leadership crisis.
Details of the circumstances surrounding his illness and death were not immediately available as of the time of filing this report.
The university community, academics, colleagues, family members and associates are expected to mourn the deceased academic and administrator, whose tenure as Vice-Chancellor ended almost as soon as it began.
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