FG Won't Grant 100%, But Between 30 and 60% Telecom Tariff Hike, Minister Insists

Advertisements

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, has insisted that the Federal Government would not allow telecoms companies to increase tariffs by 100 per cent.

Indeed, the telecoms companies have been pushing for an 100 percent increase in tariff because of rising operational costs, inflation and naira devaluation.

However, the minister, who appeared on Channels Television’s Politics Today on Wednesday, said the government was conscious of a need for a tariff increase in the telecom sector, but a 100 per cent increase by telecoms companies cannot be granted.

Clarifying on a percentage threshold tariff increase, Tijani said, “I think it should not be more than anywhere between 30 to 60 per cent.”

According to him, even though the companies are insisting that a 100 per cent increase, the government knows that such a level of increase will be harmful to Nigerians.

He said, “We have already made it clear that we are not going to approve 100 per cent. These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.

“But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100 per cent.”

The Minister assured that the Nigerian Communications Commission (NCC) is working on the tariff increase and a particular figure would be arrived at soon.

He explained that it is necessary to consciously look at the numbers, the implication any increase will have on the people and the sustainability of the sector for proper balancing.

He advised mobile network operators to improve their service to the required standard, emphasising that there is a need for them to keep improving their equipment.