Dr. Bosun Tijan, Minister of Communications, Innovation, and Digital Economy, has stated that the Nigerian Communications Commission (NCC) will shortly develop methods for cellular pricing adjustments.
However, he pointed out that the increase would not be 100% as the telecom companies had requested.
During a stakeholder meeting with Mobile Network Operators (MNOs) on Wednesday, Tijani made this statement and added that discussions and engagements on the matter were still ongoing.
The minister claims that the NCC will approve and announce the new tariffs to Nigerians shortly.
“You have seen over the past weeks that some of these companies have been agitating to increase tariffs. They are requesting a 100% tariff increase. But it will not be 100%. The NCC will soon come up with a clear directive on how we will go about it,” Bosun stated.
Boosting Growth With Proper Regulations
The Minister underlined the importance of ensuring that the telecom industry works together and implements the appropriate laws to support its expansion.
“As a government, we want to strike a balance, protecting our people while also protecting and ensuring that these companies can continue to make significant investments,” he stated.
Additionally, the Minister stated that the Federal Government will no longer rely solely on private enterprises to invest in the sector’s infrastructure.
“As a country, over time, we have left these investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term.
“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,” he added.
Sustainability In Telecom
Speaking as well, NCC Executive Vice-Chairman (EVC) Dr. Aminu Maida stated that the industry’s sustainability was the focus of the stakeholder meeting.
- He claimed that the regulators had considered every aspect of the sector and that, contrary to what the Minister had said, it was unlikely that the Commission would authorize a 100% tariff increase.
- Acknowledging that Nigerians are agitated to hear the exact percentage approved, Maida said there are still other stakeholder engagements to be held, adding that the decisions will be communicated in one or two weeks.
- He said that the NCC had implemented several tools and instruments to ensure service quality compliance.
- He also urged MNOs to use simplified templates to show Nigerians the costs per minute for voice calls, SMS, and megabytes of data.
“We are abandoning the system in which you have a main rate and a bonus at a separate 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 continued.
Airtel’s Perspective
- Femi Adeniran, an Airtel media representative, spoke on behalf of Dinesh Balsingh, the CEO of Airtel Nigeria, who stated that the planned rate revisions were necessary due to the economic realities of growing capital and operating expenses.
- According to Balsingh, tariff increases are necessary for telecom providers to provide better connectivity and promote digital inclusion.
The suggested tariff changes were required due to the economic realities of growing capital and operating expenses.
“This aims to unlock significant benefits for Nigerian consumers while ensuring the sector’s long-term sustainability,” he stated.
What To Note
Mr Karl Toriola, the CEO of MTN Nigeria, recently said that the telecom operators had requested a 100% rise and that the industry is currently facing a sustainability issue that needs to be handled through a tariff review.
- While stressing that telecommunications is an essential component of an economy and a fundamental human right, Toriola pointed out that Nigerians’ economy and well-being will suffer without a sustainable business.
- He emphasized how telecom carriers’ operating costs have skyrocketed due to inflation, devaluation of foreign money, and rising energy prices.
- He claims that the price of diesel has increased from N230 per litre before the COVID-19 pandemic to over N1,000 per litre, and that the official exchange rate has changed from N424.50 to roughly N1,550 by the end of 2024. This has resulted in a significant increase in the cost of importing essential infrastructure, such as base stations, which are now almost four times more expensive than two years ago.
