The expected telecom tariff hike looming in some quarters and the agitation for 100% tariff increase by mobile network operators have been cleared as the federal government has said that telecommunication tariffs will soon increase, though the hike will not be as high as the 100 per cent being proposed by operators.
Speaking after a stakeholders’ meeting with Mobile Network Operators in Abuja, the Minister of Communication, Innovation and Digital Economy, Dr. Bosun-Tijani who disclosed that consultations were still ongoing said that the Nigerian Communications Commission, NCC would approve the new tariffs and announce them to the public in due course.
“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting a 100 per cent tariff increase. But it will not be 100 per cent. We are still looking at that study and NCC will come up with a clear directive on how we will go about it.
Dr. Tijani further explained that the government was trying to strike a balance to ensure that telecom consumers are protected while the operators continue to invest significantly in the sector.
“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. We need to ensure that as a sector, we get our acts together, ensure that from the regulation side, we put the right regulations in place that can ensure the growth of this sector,” he said.
While emphasising the need for proper regulation of the industry to ensure sustainable growth, the minister pointed out that the Federal Government would no longer entirely depend on private sector to invest in telecommunications infrastructure, as this approach had limited expansion to areas with immediate returns on investment.
“As a country, over time, we have left this investment in the hands of the private sector. They typically invest where they can see returns in the short to medium term, you want to have access to very good 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,” Tijani said.
For the Executive Vice-Chairman of the NCC, Dr. Aminu Maida, the operators had requested a 100 per cent tariff increase which most likely will not be approved but the exact percentage would be announced soon.
Dr. Maida added that the NCC had updated its quality-of-service regulations to improve transparency and compliance.
He explained that operators would now be required to simplify their pricing templates, allowing consumers to clearly understand charges for voice calls, SMS, and data.
Operators have argued that inflation and naira devaluation have made it increasingly difficult to maintain service levels meanwhile some operators are advocating for a gradual increase, recognizing the financial burden such price hikes could place on consumers.