In nearly two years of President Bola Tinubu’s administration, there have been significant adjustments to various tariffs, including a 50% increase in telecom charges and a 15% rise in port fees. This series of changes has left both businesses and households struggling amid challenging economic conditions as the administration nears its second anniversary.
These adjustments, aimed at increasing revenue for companies and government agencies amidst rising operational costs tied to Tinubu’s economic policies, have intensified the financial strain on Nigerians, contributing to a higher cost of living and reduced purchasing power.
Key Tariff Adjustments Under Tinubu’s Administration:
1. Electricity Tariff Increase
On April 3, 2024, the Nigerian Electricity Regulatory Commission (NERC) approved an increase in electricity tariffs for customers in Band A, raising rates from N66 to N225 per kilowatt (kW) for those receiving 20 hours of daily supply. This change was designed to reduce the federal government’s electricity subsidy by approximately N1.14 trillion for the fiscal year, as part of a gradual phase-out of subsidies.
2. 50% Increase in Telecom Costs
In January 2025, the Nigerian Communications Commission (NCC) approved a request from telecommunications companies for a tariff increase capped at 50%, marking the first hike since 2013. While the telecom sector faces rising operational costs, this decision drew criticism from the Nigeria Labour Congress (NLC), which labeled the increase a “clear assault” on the welfare of Nigerian workers. The House of Representatives has since called for a suspension of this approval.
3. ATM Transaction Fee Increase
The Central Bank of Nigeria (CBN) will implement new ATM transaction fees starting March 1, 2025. Customers withdrawing from their banks’ ATMs will not incur charges, while non-customers using ATMs at other banks will face a fee of N100 per N20,000 withdrawal, with additional surcharges for transactions at ATMs located in public areas.
4. 15% Increase in Port Charges
The Nigerian Ports Authority (NPA) has raised port tariffs for the first time in 32 years, citing inflationary pressures. This increase aims to fund the implementation of ICT infrastructure for the port community system and national single window. However, the Manufacturers Association of Nigeria (MAN) has criticized this move, highlighting the existing economic burdens on businesses.
5. Suspension of 4% FOB Charges by Customs
On February 5, the Nigeria Customs Service (NCS) announced a 4% charge on the free-on-board (FOB) value of imports. However, following backlash from the Lagos Chamber of Commerce and Industry and former Senate President Bukola Saraki, the NCS suspended this implementation on February 11 after discussions with the finance minister.
Credit to THE CABLE NEWS
