From Victor Osula, Abuja
The Federal Government has approved the demand for tariff hike by Nigerian telecommunication companies.
The Telcos had sought the approval of the Nigerian Communications Commission (NCC) for a 100 percent tariff increase.
Rising from a stakeholders’ meeting with Mobile Network Operators (MNOs) on Wednesday, in Abuja, Minister of Communications, Innovation and Digital Economy, Bosun Tijani, however, said the hike will fall short of the 100 percent increase requested by Telcos.
“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 percent tariff increase. But it will not be by 100 percent; 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 said, adding that there was need to ensure the telecommunication sector gets its acts together to ensure that the right regulations are put in place to ensure the growth of this sector.
The minister also said the Federal Government would no longer leave investments on infrastructure in the sector to private companies alone.
“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 said.
On his part, the Executive Vice-Chairman (EVC) of the NCC, Dr Aminu Maida, said the meeting with stakeholders was about the sustainability of the industry.
“We have looked at all of these factors, and that is why, like the minister said, it is not likely that we are going to approve a 100 percent tariff increase. I know that Nigerians are agitated to hear the exact percentage approved. There are still some stakeholder engagements that we are going through, but you will hear from us within a week or two”, he said.
