Federal Govt Approves Telecoms Tariff Hike, But Rejects Operators’ 100% Demand

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani has disclosed that the federal government may not accede to the request for a 100 percent increase in tariffs on telecom services by Mobile Network Operators (MNOs).

This, he said was the outcome of a stakeholders’ meeting with the MNOs and Telecom Service Providers held in Abuja.

The minister also confirmed that consultations and engagements were ongoing, adding that very soon, the Nigerian Communications Commission (NCC) would approve new tariffs.

“You’ve seen over the past weeks that there’s been agitation from some of these companies to increase tariff. They’re requesting for 100 per cent tariff increase.

“But it won’t be by 100 percent and we’re still looking at that study and NCC will come up with a clear directive on how we go about it, to strike the balance as a government to protect our people, but also protect and ensure that these companies can continue to invest significantly,” he explained.

He underscored the need for Nigeria’s communications sector to establish effective regulations and strategies to drive growth, create jobs, and support other key sectors in the country

“We need to ensure that as a sector, we get our acts together, ensure that from the regulation side, we put the right regulations in place that can ensure the growth of this sector; ensure that we continue to contribute to job creation, but also enabling other key sectors in the country as well,” he added.

He said the Nigerian government will invest in communication infrastructure, no longer relying solely on private sector investments.

He added: “As a country, over time, we’ve left this investment in the hands of the private sector. They typically invest where they can see returns in the short to medium term. But this government has recognised the need for us to accelerate investment in this infrastructure.

“We wouldn’t want this conversation to just be about tariff increase. I think what the world is talking about today is meaningful connectivity.

“You want to have access to very good quality service. And 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.”

In his remarks, NCC Executive Vice-Chairman (EVC), Dr. Aminu Maida, said the meeting with stakeholders was about the sustainability of the industry.

“We have looked at all of these factors, and that is why, as the minister said, it is not likely that we are going to approve 100 percent tariff increase.

“I know that Nigerians are agitated to hear the exact percentage approved. There are still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” he added.

Maida assured that the NCC had put a number of tools and instruments into place by revising its quality of service regulations for compliance service quality.

He urged the MNOs to comply with simplified templates to show Nigerians charges per minute for voice calls, short message service (SMS), and a megabyte of data.

“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 for Nigerians to understand what they are being charged for.

“This is one of the things when we took a lot of time over the past year looking at data; there is this agitation that the MNOs are stealing our data,” he said.

The Chief Executive Officer of one of the major MNOs, Airtel Nigeria, Dinesh Balsingh, in his response through the company’s spokesperson, Femi Adenirin, noted that for the telecom giant’s commitment to delivering superior connectivity and fostering digital inclusion, there was need for tariff increments.

“The economic realities of rising operational and capital costs, necessitated the proposed tariff adjustments aim to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he said.