*Bismarck Rewane, an economist and CEO of Financial Derivatives Limited, welcomes the Federal Government鈥檚 approval of the telecoms operators鈥� proposal for upward tariff adjustments through the Nigerian Communications Commission, stating the move will help to reduce inflation and ensure more sustainable telecoms sector in the West African country

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Sequel to the Nigerian Government鈥檚 confirmation Wednesday, January 8, 2025, of plans to approve the Mobile Network Operators鈥� (MONs) proposal to jack up telecoms tariffs, Mr. Bismarck Rewane, Chief Executive Officer (CEO) of Financial Derivatives Limited, has welcomed the proposed tariff hikes.

Rewane, an economist, who said this while featuring as a guest on a Channels TV programme monitored Thursday, January 9, in Lagos, opined that the Federal Government鈥檚 approval of the telecoms operators鈥� proposal for upward tariff adjustments through the Nigerian Communications Commission (NCC) would help to reduce inflation in the West African country鈥檚 economy.

Mr. Bismarck Rewane, CEO of Financial Derivatives Limited

The expert affirmed that the government鈥檚 move to address the burning tariff issue in the telecoms space also would make the sector more sustainable for the Telcos and other stakeholders.

Earlier, Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy, at a stakeholders鈥� meeting, Wednesday, in Abuja, FCT, had disclosed this development at an industry stakeholders鈥� meeting Wednesday, in Abuja, FCT.

Tijani assured telecoms consumers, that the imminent tariff increments, however, would not be by 100 percent, as earlier requested by the network operators.

The Minister also said the NCC would work out the necessary modalities for MNOs to effect such tariff hikes in the telecoms ecosystem.

Rewane: Investors upbeat for 鈥榞ood goodies鈥� in Nigeria鈥檚 telecommunications

In regard to what the current signal from the Nigerian Government portends to potential investors in the Nigerian telecommunications, Rewane stated: 鈥淵esterday (Wednesday), the price of MTN shares went up by 10 percent to 220.

鈥淭he investors have already factored that in, and are expecting a lot of good goodies.鈥�

He further noted: 鈥淏ut more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they鈥檙e going to see an increase in productivity, not directly but indirectly.

鈥淎ny increase in productivity and output is likely to allow inflation to moderate, which is the goal.鈥�

On Telcos鈥� QoS improvement and industry sustainability

The CEO of Financial Derivatives averred: 鈥淪o, we heard from the policymaker, 鈥橞osun Tijani, who was very clear that we want a sustainable sector.

鈥淏ut we also heard from the regulator saying that we will hold these guys to Quality of Service (QoS).鈥�

Rewane equally stated: 鈥淲e also heard from the operators, MTN that they are all revving up.

鈥淪o in all, there are economic benefits because of increased output and productivity.

鈥淭wo, policymakers are aligned because they want this to lead to a moderation in inflation.鈥�

The expert asserted 鈥渟o in all, I don鈥檛 think it鈥檚 a bad deal.鈥�

In connection with the percent of tariff adjustments the Telcos are likely to get from the industry regulators at the end of the day, Rewane said: 鈥淲ill they get 100%? No, they will definitely not.

鈥淲e suspect that we are going to likely see something between 40 and 50%, which is fair after so many years of static changes.鈥�

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