FG Rules Out 100% Telecom Tariff Hike

The Federal Government has assured Nigerians that it will not approve a 100% increase in telecom tariffs, despite escalating operational costs faced by telecom operators.

This assurance was given by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, during an appearance on Channels Television’s Politics Today.

Tijani acknowledged the pressures faced by service providers, including inflation and naira devaluation, but maintained that a steep hike would place undue strain on consumers.

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“We have made it clear that a 100% increase is off the table,” Tijani stated. “While the operators argue this is necessary for sector stability, we believe it would place undue strain on consumers.”

The minister suggested that a more reasonable adjustment between 30% and 60% is being considered, as the Nigerian Communications Commission (NCC) works to find a balance between affordability for consumers and sustainability for the telecom industry.

He emphasized the need to maintain affordability in the telecom sector, which he described as vital to Nigeria’s economic growth.

He also called on telecom operators to continue upgrading their infrastructure to meet increasing consumer demands.

In a separate interview on Sunrise Daily, MTN Nigeria’s CEO, Karl Toriola, disclosed that telecom operators are collectively advocating for a 100% tariff adjustment, citing rising costs across the sector.

“We need an adjustment of about 100%, but the government is mindful of the economic pressures on consumers,” Toriola stated.

He added that while a 100% increase might be the ideal for operators, he is optimistic about a phased adjustment that could stabilize the sector over time.

Toriola also pointed out that unlike sectors such as aviation and power, the telecom industry has not implemented a tariff increase despite facing similar economic challenges.

Meanwhile, Tijani emphasized that consumer interests remain a priority, reiterating the government’s commitment to striking a balance that supports both operators and users.

The ongoing deliberations by the NCC are expected to yield a final decision soon, with stakeholders hopeful for a resolution that ensures service quality and affordability while addressing operational costs.

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