The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has reaffirmed that the Federal Government will not approve a 100 percent tariff increase proposed by telecom companies.
Telecom operators have been advocating for a tariff hike for several years, citing factors such as rising operational costs, inflation, and the devaluation of the naira.
During an appearance on Channels Television’s Politics Today on Wednesday, Tijani acknowledged that a tariff adjustment in the telecom sector is necessary but emphasized that the government cannot approve the full 100 percent increase being requested by the companies.
Asked if there is a percentage threshold for the impending tariff increase, the Minister said, “I think it should not be more than anywhere between 30 to 60 per cent.”
He stated that while the companies are claiming a 100 percent increase is necessary to stabilize the sector, the government understands that such a rise would be detrimental to the people.
“We have already made it clear that we are not going to approve 100 per cent. These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.
“But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100 per cent,” Tijani said.
The Minister highlighted that the Nigerian Communications Commission (NCC) is still reviewing the proposed tariff increase and has not yet settled on a final figure.
He emphasized the importance of carefully considering the numbers, the potential impact on the public, and the sustainability of the sector to ensure a fair balance.
Tijani also noted that for mobile network operators to enhance their service quality to the required standards, continuous improvement of their equipment is essential.
On January 3, during an appearance on Channels Television’s Sunrise Daily, the CEO of MTN Nigeria, Karl Toriola, revealed that telecom companies are in agreement on the proposal for a 100 percent tariff increase.
“We at MTN believe we need adjustment of about 100 per cent, I think the industry is pretty much aligned because we are all experiencing the same headwinds. Now, the government is very sensitive to squeezing consumers’ wallets with the pressures that have come from inflation and currency devaluation on consumers.
“So, I’m not sure they will give us 100 per cent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be,” Toriola said.
The CEO of MTN stated that nearly every other sector in the country, including aviation and power, has raised tariffs, except for the telecommunications industry.
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