The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, has reiterated that the Federal Government would not allow telecoms companies to increase tariffs by 100 per cent.
For some years now, the telecoms companies have been asking for an increase in tariff, citing rising operational costs, inflation and naira devaluation among others.
Tijani, who was a guest on Channels Television’s Politics Today on Wednesday, said the government acknowledged that a tariff increase in the telecom sector is due, but said that the government cannot grant the 100 per cent the companies are demanding.
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 said that even though the companies are insisting that a 100 per cent increase is what is needed to stabilise the sector, the government knows that such a level of increase will be harmful 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 noted that the Nigerian Communications Commission (NCC) is still working on the tariff increase and is yet to arrive at a particular figure.
According to him, it is necessary to look at the numbers, the implication any increase will have on the people and the sustainability of the sector for proper balancing.
Tijani said that for mobile network operators to improve their service to the required standard, there is a need for them to keep improving their equipment.
When the Chief Executive Officer of MTN Nigeria, Karl Toriola, appeared on Channels Television’s Sunrise Daily on January 3, he disclosed that the telecoms companies are unanimous in the 100 per cent increase proposal.
“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 MTN CEO said that almost every other sector in the country, including aviation and power has increased tariffs except the telecoms industry.
