Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy, has advanced reasons why the Federal Government is not allowing Mobile Network Operators (MNOs) to jack up tariffs by 100 percent.
Dr. Tijani, who was featured as a guest on Channels TV programme explained that the Nigerian Government would rather settle for “anywhere between 30 and 60 percent” hikes in order not to “harm” telecom consumers, among other factors.
He said it is noted that the telecoms companies, in the last few years, have intensified agitations over tariff increments for consumers.
The network providers, under the auspices of the Association of Telecommunications Companies of Nigeria (ATCON) and the Association of Licensed Telecommunications Companies of Nigeria (ALTON), on several occasions, have advanced reasons why the Federal Government, through the Nigerian Communications Commission (NCC), should approve their proposal for upward tariff adjustments in the country’s telecoms ecosystem.
The MNOs also cited increasing operational costs, high inflation, and Naira devaluation among others to justify their request for tariff hikes.
Explaining the Federal Government’s position on the burning issue of tariff increments, Dr. Tijani said the Federal Government truly acknowledged that tariff increases in the telecoms sector are due.
The Minister, however, averred that the government could not grant the 100 percent the telecoms companies are demanding from the industry regulators.
Regarding a possible percentage threshold for the impending tariff increases for consumers, he stated: “I think it should not be more than anywhere between 30 and 60 percent.”
According to him, though the Telcos are intensely pushing for 100 percent increases in tariffs to stabilise the sector, the Nigerian Government is aware that such a level of increases will be harmful to consumers.
Tijani further said: “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 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 MNOs to increase by 100 percent.”
The Minister equally noted that the Nigerian Communications Commission is still working on the modalities for the tariff increases, and is yet to arrive at a particular figure.
It is necessary to look at the numbers, the implication any tariff increases will have on the people, and the sustainability of the sector of the Nigerian economy for proper balancing, he also submitted.
The Minister opined that for Mobile Network Operators to improve their Quality of Service (QoS) to the required standard, there is a need for them to keep improving their equipment.
