Bosun Tijani, has reiterated that the Federal Government will not approve a 100% increase in telecom tariffs, despite the challenges posed by rising operational costs in the telecom industry. This decision comes as service providers continue to highlight the pressing need for tariff adjustments due to factors like inflation, naira devaluation, and soaring operational expenses.
In an appearance on Channels Television’s Politics Today, Tijani acknowledged the legitimacy of telecom operators' concerns but firmly rejected the proposed 100% hike, emphasizing the government’s commitment to protecting consumers from excessive financial burdens.
“We have made it clear that a 100% increase is off the table,” Tijani said during the interview. “While the operators argue this is necessary for sector stability, we believe it would place undue strain on consumers.”
To address the situation, Tijani suggested that a more balanced approach would involve adjustments within the range of 30% to 60%, allowing the government to strike a balance between sustaining the telecom industry and ensuring affordability for consumers. He revealed that the Nigerian Communications Commission (NCC) is actively deliberating to determine an appropriate tariff adjustment that would meet these dual objectives.
Tijani also stressed the critical role of the telecom sector in driving Nigeria’s economic growth and emphasized the need for service providers to invest in upgrading their infrastructure to meet increasing consumer demands. He underscored the government’s commitment to supporting the sector’s growth while ensuring its services remain accessible to Nigerians.
Meanwhile, in a separate interview on Channels Television’s Sunrise Daily, MTN Nigeria’s CEO, Karl Toriola, expressed the collective concerns of telecom operators regarding the need for substantial tariff adjustments. Toriola stated that the operators are united in their call for a 100% tariff increase to address the financial pressures they face.
“We need an adjustment of about 100%, but the government is mindful of the economic pressures on consumers,” Toriola explained. He highlighted the absence of any significant tariff hike in the telecom sector, unlike other industries such as aviation and power, which have implemented upward price reviews in response to similar economic challenges.
Despite the rejection of the proposed 100% hike, Toriola expressed optimism about a phased approach to tariff adjustments, which could provide the much-needed stability the telecom sector requires over time. This, he noted, would be a step forward in aligning the industry's pricing structure with its operational realities while minimizing the financial impact on consumers.
