The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani,
has emphasized that the Nigerian Communications Commission should approve a maximum telecommunications tariff increment of 60%.
Speaking on a Channels TV program, on Wednesday, Tijani rejected the telecom operators’ request for a 100% increase, labeling it as unfeasible.
He further explained that the government is implementing various policies to alleviate the financial pressure on telecom operators while ensuring the long-term sustainability of the industry.
Responding to a question about the likely percentage increment the NCC may approve, after dismissing the 100% request, the Minister stated ” “It shouldn’t be more than anywhere between 30% to 60%.”
Tijani recognized that telecom operators argue a 100% tariff increase is essential for the survival of their businesses, but he emphasized that the government is focused on finding alternative solutions to ensure the industry’s long-term sustainability without resorting to such a large increase.
“This is a sector that is responsible for driving growth in our country, it will be harmful to our people to allow the MNOs to increase by 100%.
“But what we’re now doing that people are not paying attention to is that we’re asking difficult questions, that is, saying can we possibly increase the local content in that sector?
”
Can we reduce the amount of imports that are coming into that sector, which means they have to look for foreign exchange, which is more expensive?”
He also pointed out that the government has designated all telecom infrastructure as critical national infrastructure, a move that telecom operators have long advocated for.
He explained that this decision was made after recognizing that vandalism of telecom equipment significantly impacts service quality and forces operators to incur substantial costs for repairs.
In the context of the ongoing tax reform, Tijani mentioned that the government is working to harmonize the various taxes telecom operators are required to pay, with the aim of creating a more conducive environment for their growth and success.
Tijani added that the government is also focused on investing in telecom infrastructure, which will help alleviate some of the financial burdens currently shouldered by the telecom operators.
“We are, for instance, investing in 90,000 kilometers of fibre. When we do the investment, it will allow these companies to be able to reach more people.
“If we’re investing in towers in difficult-to-reach locations in rural areas, it will give them the opportunity to increase the pool of customers that they have without making that heavy investment,” he stated.
The CEO of MTN Nigeria, Mr. Karl Toriola, had recently expressed concerns that the telecom industry is facing a sustainability threat, which he believes must be addressed through a tariff review.
He revealed that telecom operators have requested a 100% increase in tariffs.
While stressing that telecommunications is both a fundamental human right and a key driver of the economy, Toriola warned that without a sustainable industry, Nigeria’s economy and the well-being of its citizens would be at risk.
