Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy
Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has said that telecom rates will rise, but not by the full 100 percent that operators are requesting. According to a video posted by Channels TV on X , Tijani revealed this in a conversation with reporters on Wednesday.
According to the Minister of Communications, Innovation, and Digital Economy, the Nigerian Communications Commission (NCC) would shortly develop procedures for cellular pricing adjustments.
However, he pointed out that the increase would not be 100% as the telecom companies had requested.
The Nigerian Communications Commission received the proposal, which aims to address growing operating expenditures, such as inflation and increased service delivery costs.
''Telecommunication tariffs will go up that is the verdict but it won't be by 100% and we are still looking at that study and NCC will come up with a clear directive on how we will go about it.''
The minister emphasized the significance of appropriate laws to guarantee the steady expansion of the telecoms sector in remarks following a stakeholders’ meeting in Abuja. And during the stakeholder meeting with Mobile Network Operators (MNOs) on Wednesday, Tijani made this statement and added that discussions and interactions on the matter were still going on. He also claims that the NCC would approve and announce the new prices to Nigerians shortly. He stressed that in order to assist the industry in the face of global inflationary pressures, a balanced strategy is required.
As you can see, some of these businesses have been pushing for higher tariffs in recent weeks. They are asking for a tariff rise of 100%. It won’t be 100%, though. The Minister stated, “The NCC will shortly provide a clear directive on how we will proceed.”
Encouraging growth through appropriate rules
The Minister underlined how important it is to make sure the telecom industry pulls together and implements the appropriate laws to support its expansion.
“As a government, we want to find a balance between protecting our citizens and ensuring that these companies can continue to make large investments,” he stated.
Additionally, the Minister stated that the Federal Government will no longer rely solely on private enterprises to invest in the sector’s infrastructure.
Over time, as a nation, we have let the private sector handle these investments. Usually, they make investments where they may expect short- to medium-term profits.
“We don’t want this discussion to be limited to tariff increases. Meaningful connectivity is a hot topic right now since consumers want to be able to access high-quality services.
He stated, “The investment that must be made in the infrastructure that is used to deliver these services is a part of it that the consumers may not be aware of.”
Sustainability in telecom
Speaking as well, NCC Executive Vice-Chairman (EVC) Dr. Aminu Maida stated that the industry’s sustainability was the focus of the stakeholder conference.
He claimed that the regulators had considered every aspect of the sector and that, contrary to what the Minister had declared, it was unlikely that the Commission would authorize a 100% tariff hike.
Maida acknowledged that Nigerians are anxious to know the precise percentage that has been approved, but she also stated that more stakeholder interactions are still to be done and that the conclusions will be shared in a week or two.
According to him, the NCC has implemented several instruments and tools to guarantee adherence to service quality standards.
In order to show Nigerians the costs per minute for voice calls, SMS, and megabytes of data, he also asked MNOs to use simplified templates.
“We are abandoning the system in which you have a main rate and a bonus at a separate rate.
Nigerians frequently find it challenging to truly comprehend the charges they are being charged for because of this. There is a growing concern that our data is being stolen by MNOs,” he stated.
Femi Adeniran, an Airtel media representative, spoke on behalf of Dinesh Balsingh, the CEO of Airtel Nigeria, who stated that the planned rate revisions were necessary due to the economic realities of growing capital and operating expenses.
Balsingh claims that the planned rate changes are intended to guarantee the sector’s survival while providing substantial advantages to Nigerian customers.
“Despite the sharp rise in operational costs, which have increased by more than 300 percent in the last 18 to 24 months alone, tariffs have stayed unchanged for more than ten years.
“Realigning our pricing structure with economic realities has become essential to continue providing high-quality services and meeting the growing demand for digital connectivity,” Balsingh emphasized.
Tariff increases are necessary, according to Balsingh, in order for the telecom providers to provide better connectivity and promote digital inclusiveness.
The suggested tariff changes were required due to the economic realities of growing capital and operating expenses.
“This aims to unlock significant benefits for Nigerian consumers while ensuring the sector’s long-term sustainability,” he stated.
The things everyone should be aware of as it relates to the rising cost and demands of infrastructures to keep running in Nigeria.
Mr. Karl Toriola, the CEO of MTN Nigeria, recently said that the telecom operators had requested a 100% rise and that the industry is currently facing a sustainability issue that needs to be handled through a tariff review.
In addition to stressing that telecommunications is an essential component of an economy and a fundamental human right, Toriola pointed out that Nigerians’ economy and well-being will suffer in the absence of a viable sector.
He emphasized how telecom operators’ operating costs have skyrocketed due to inflation, devaluation of foreign money, and rising energy prices.
He claims that the price of diesel has increased from N230 per litre before the COVID-19 pandemic to over N1,000 per litre, and that the official exchange rate has changed from N424.50 to roughly N1,550 by the end of 2024. This has resulted in a significant increase in the cost of importing essential infrastructure, such as base stations, which are now almost four times more expensive than they were two years ago.
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