*Dr. ‘Bosun Tijani, Minister for Communications, Innovation and Digital Economy, confirms the Federal Government has approved the Mobile Network Operators’ proposal to increase service tariffs, assuring telecoms consumers that the Nigerian Communications Commission will work out modalities for tariff adjustments in the sector of the economy

Gbenga Kayode | 绿帽献妻

Sequel to years of agitations for upward reviews of their service charges, the Federal Government of Nigeria has approved the Mobile Network Operators’ (MNOs) proposal to jack up telecoms tariffs.

绿帽献妻 reports Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy, who disclosed this development at an industry stakeholders鈥� meeting Wednesday, January 8, 2025, in Abuja, FCT, however, assured telecoms consumers, that the imminent tariff increments would not be by 100 percent as requested by the network operators.

MNOs’ agitations for upward tariff adjustments

Hitherto, the network operators, under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had intensified efforts at convincing the Nigerian Communications Commission (NCC) to approve tariff adjustments for telecoms consumers over time.

The MNOs equally followed up their agitations with a proposal for upward tariff adjustments to NCC for consideration and approval.

Dr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria Communications Plc, while featuring on a private television programme recently, also affirmed that network operators, indeed, had submitted a proposal for 鈥渁pproximately 100 percent telecoms tariff increases鈥� in the ecosystem.

The telecoms companies have hinged their request for tariff hikes on how skyrocketing diesel prices for powering base stations, rising costs of imported telecom equipment, inflation, and the depreciation of the Naira have all rendered the current pricing structure unsustainable in the telecoms space.

Toriola further contended that there鈥檚 no way that the Nigerian telecoms industry would continue to sustain itself and provide the required quality of service to subscribers under the present pricing structure.

鈥淲e鈥檙e not even talking about profitability; we鈥檙e talking about sustainability.

鈥淭he entire ecosystem, including suppliers and other stakeholders, is facing the same pressures,” MTN Nigeria Chief averred.

Likewise, Engr. Gbenga Adebayo, Chairman of ALTON, had toed Dr. Toriola’s line of argument, emphasising the urgent need for a pricing structure driven by market forces.

Adebayo said: 鈥淭he current pricing regime is not sustainable given the inflationary pressures we face. Government intervention in pricing will only deter investors and lower service quality.鈥�

On inflation, consumer protection and telecoms sustainability

Speaking on the major reason why the Federal Government through the NCC would not approve 100 percent upward tariff increments at the moment, Minister Tijani, at a meeting with consultants from KPMG Nigeria and SimmonsCooper Partners in his office, in Abuja, disclosed the experts had also shared 鈥渁n Interim Report on the Sustainability of the Nigerian Telecommunications Sector鈥�.

The Minister, in a blog note, via his verified social media account, also said: 鈥淎s a government, we are working to find a balance between the sustainability of the sector and ensuring the availability of meaningful connectivity for our people.鈥�

鈥淭his report is part of our commitment to ensure that we achieve our goal of providing Internet access as a human right for all.鈥�

Tijani equally assured the stakeholders that the Nigerian Government would endeavor to balance infrastructure upgrade and protection, industry sustainability and consumer protection for national development.

He further explained that the Nigerian Communications Commission, as the telecoms sector regulator, would design modalities for tariff adjustments in the West African country’s telecoms industry.

鈥淲e鈥檝e looked at a number of things in terms of how to ensure they can meaningfully contribute to the development of Nigeria.

鈥淪ome of those things include implementing the Executive Order around ensuring that we can protect infrastructure around telecoms, driving up significantly local content and importantly, ensuring the sustainability of the companies themselves,” stated he.

The Minister acknowledged that the stakeholders could see inflation across the world as it also affects the telecommunications companies, stating 鈥渨e don鈥檛 run them down but we allow them to continue to be sustainable, so that they can contribute to our economy.鈥�

He also noted “You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs, requesting 100 percent tariff increases.”

Dr. Tijani, however, declared that the request for 100 percent telecoms tariff increments “is not something that, as a government, we will be able to subscribe to at the minute.鈥�

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