TELECOM TARIFFS WILL INCREASE SOON, BUT NOT BY 100%

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The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has announced that telecom tariffs will rise soon, but the increase will not reach 100 percent.

Speaking after a stakeholders’ meeting with Mobile Network Operators (MNOs) on Wednesday in Abuja, Tijani explained that discussions and consultations on the matter are still in progress.

The News Agency of Nigeria (NAN) reports that MNOs have proposed a 100 percent hike in tariffs.

The minister noted that the Nigerian Communications Commission (NCC) will soon approve the new tariffs and officially announce them to Nigerians.

“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting a 100 per cent tariff increase.

“But it will not be by 100 per cent; the NCC will soon come up with a clear directive on how we will go about it.

“We want to strike the balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly,” he said.

He emphasized the importance of the telecommunication sector organizing itself to establish proper regulations that would support its growth.

The minister further stated that the Federal Government would no longer rely solely on private companies to invest in the sector’s infrastructure.

“As a country, over time, we have left these investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term.

“We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity; people want to have access to quality service.

“A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services,” he said.

The Executive Vice-Chairman (EVC) of the NCC, Dr Aminu Maida, said that the meeting with stakeholders was about the sustainability of the industry.

“We have looked at all of these factors, and that is why, like the minister said, it is not likely that we are going to approve a 100 per cent tariff increase.

“I know that Nigerians are agitated to hear the exact percentage approved. There are still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” he said.

He mentioned that the NCC had implemented various tools and mechanisms to ensure adherence to service quality standards.

He encouraged mobile network operators (MNOs) to use simplified templates to clearly display charges for voice calls per minute, SMS, and one megabyte of data to Nigerians.

“We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate.

“It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for. There is this agitation that the MNOs are stealing our data,” he said.

The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Femi Adeniran, Airtel media spokesperson, said that the economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.

Balsingh said that for the telecommunications companies to deliver superior connectivity and foster digital inclusion, there is a need for tariff increments.

“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.

“This is aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he said.