Telcos will soon increase tariffs but not by 100% – FG
The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has revealed that an increase in telecom tariffs in Nigeria is on the horizon, though it will not reach the 100 percent hike that Mobile Network Operators (MNOs) have proposed.
After a stakeholders’ meeting with MNOs in Abuja on Wednesday, Tijani indicated that discussions are still in progress, and the Nigerian Communications Commission (NCC) is expected to approve and announce the new tariffs shortly.
“You may have noticed the recent push from some companies for a significant tariff increase. They are asking for a 100 percent rise. However, that won’t be the case; the NCC will soon provide a clear guideline on how we will proceed. Our goal as a government is to find a balance that protects our citizens while also ensuring these companies can continue to make substantial investments,” Tijani stated.
He underscored the necessity of regulating the telecommunications industry to foster its growth and sustainability. Tijani also mentioned that the Federal Government will no longer rely solely on private companies for infrastructure investments, as they typically focus on areas with immediate financial returns.
“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 added.
The Executive Vice-Chairman of the NCC, Dr. Aminu Maida, explained that the stakeholder meeting was focused on ensuring the sustainability of the industry. He confirmed that a 100 percent tariff increase was unlikely and that ongoing discussions would determine the final percentage, with an official announcement expected within a week or two.
“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” Maida said.
He also mentioned that the NCC had implemented several tools and instruments to ensure compliance with service quality standards and urged MNOs to adopt simpler pricing models to help consumers better understand charges.
“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 added.
The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Airtel’s media spokesperson Femi Adeniran, defended the proposed tariff adjustments, citing rising operational and capital costs.
“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,” Balsingh stated.