The Federal Government has assured Nigerians that the proposed tariff adjustment in the telecommunications sector will prioritize sustainability and affordability. Speaking during a stakeholder meeting with Mobile Network Operators (MNOs), Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, confirmed that while tariffs will be reviewed, the increase will not reach the 100% proposed by telecom operators.
The Minister revealed that the Nigerian Communications Commission (NCC) is working on strategies to implement a reasonable adjustment that ensures sector sustainability without overburdening consumers. He also announced that a sustainability report by KPMG is expected in January 2025 to provide critical insights into the industry’s current challenges and opportunities.
“This report is part of our commitment to achieving the goal of making internet access a human right for all. It will inform our decisions on tariff adjustments and sector growth,” Tijani said.
Highlighting the need for equilibrium between consumer interests and industry growth, the Minister emphasized that infrastructure investments should no longer be left solely to private operators. He also stressed the importance of improving service quality while maintaining fair pricing.
“We want this conversation to go beyond just tariff increases. The world is talking about meaningful connectivity, and Nigerians deserve access to quality services,” Tijani stated.
The Executive Vice-Chairman of the NCC, Dr. Aminu Maida, reiterated the importance of simplifying telecom charges for better transparency. “We are moving away from complex pricing models to ensure Nigerians understand what they are being charged for voice calls, SMS, and data usage,” Maida explained.
Addressing Industry Challenges
Representatives from Airtel and MTN highlighted the economic realities driving the proposed adjustments, including inflation, naira devaluation, and rising operational costs. Airtel’s spokesperson, Femi Adeniran, noted that the adjustments aim to ensure long-term sector sustainability while unlocking benefits for consumers.
MTN’s Chief Executive Officer, Karl Toriola, echoed this sentiment, emphasizing that sustainability is critical for the sector’s contribution to the economy and national well-being. “Profitability is a long-term goal, but sustainability is what will drive the economy forward,” Toriola said.
He also acknowledged the Federal Government’s support in 2024, citing the passage of the Critical National Infrastructure (CNI) bill and efforts to address sector indebtedness as significant milestones for the telecom industry.
Next Steps
The NCC will conclude its consultations and announce the revised tariffs in the coming weeks. Stakeholders remain optimistic that the adjustments will strike a balance between maintaining affordable access for Nigerians and ensuring the growth and sustainability of the telecom sector.
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