By Mary Onyia
Following calls by telecom companies for a 100 percent increase in tariffs due to rising operational costs, the federal government has agreed to a more moderate tariff adjustment, with an increase not exceeding 30-60 percent.
This was disclosed by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, in an interview on Channels Television’s Politics Today programme on Wednesday.
Tijani acknowledged that a tariff increase is necessary in the telecom sector but expressed disagreement with the telecom companies’ demand for a 100 percent hike. He stated, “I think it should not be more than anywhere between 30 and 60 percent.”
Telecom companies have been requesting tariff increases for several years, citing factors such as inflation, the devaluation of the naira, and rising operational costs. While these companies argue that a 100 percent increase is crucial for stabilizing the sector, the Minister emphasized that such a drastic hike would be detrimental to the Nigerian populace.
“We have already made it clear that we are not going to approve 100 percent. These companies are asking for 100 percent, stating clearly that this is what they believe they need. But what we are looking at is that if this sector is responsible for driving growth in our country, a 100 percent increase would be harmful to our people,” Tijani said.
He also revealed that the Nigerian Communications Commission (NCC) is still in the process of determining the exact tariff increase and is carefully analyzing the potential impact on consumers as well as the sustainability of the sector.
In conclusion, Tijani acknowledged that for mobile network operators to enhance their service standards, continuous investment in infrastructure and equipment is essential.