Following the raging debate on the possibility of tariff increase for data and call services, Nigeria’s Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has intervened, announcing that telecom tariffs in the country will be marginally increased.
He however noted that the hike in tariff will not be by as much as 100% as proposed by Mobile Network Operators (MNOs).
Following a stakeholders’ meeting with the MNOs in Abuja on Wednesday, Tijani confirmed that consultations and engagements are ongoing, and that the Nigerian Communications Commission (NCC) will soon approve and announce a new tariff structure to the public.
In his words: “You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting for 100% tariff increase. But it will not be by 100%; the NCC will soon come up with a clear directive on how we will go about it. We want 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 emphasised the importance of regulating the telecommunications sector to ensure its growth and sustainability. Tijani also stated that the Federal Government would no longer leave infrastructure investments solely to private companies, as they tend to invest only where they can see short- to medium-term returns.
According to him: “We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity; people want to have access to quality service. 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.”
The Executive Vice-Chairman of the NCC, Dr. Aminu Maida, at the event, explained that the stakeholder meeting was focused on ensuring the sustainability of the industry. He confirmed that a 100% tariff increase was unlikely and that ongoing discussions would determine the final percentage, with an official announcement expected within a week or two.
“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” Maida said.
He also mentioned that the NCC had implemented several tools and instruments to ensure compliance with service quality standards and urged MNOs to adopt simpler pricing models to help consumers better understand charges.
“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 and difficult for Nigerians to actually understand what they are being charged for. There is this agitation that the MNOs are stealing our data,” he added.
The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Airtel’s Director of Communication, Femi Adeniran, defended the proposed tariff adjustments, citing rising operational and capital costs.
“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments. This is aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” Balsingh stated.
Several operators and industry associations, had in the past weeks spoken for and against tariff hike. However, the Association of Licenced Telecommunications Operators of Nigeria (ALTON) had noted that the sector remains the only one that had not reviewed tariffs in line with operational costs engendered by the country’s economic woes.
