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Call, Data Rate Increase Imminent As FG Agrees To Tariff Raise

by Innocent Odoh
5 months ago
in News
Bosun Tijani, Minister of Communications, Innovation, and Digital Economy

Bosun Tijani, Minister of Communications, Innovation, and Digital Economy

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The federal government has indicated that tariffs for telecom services will increase imminently in the coming weeks.

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This implies that prices of calls, data and SMS will go up for the average Nigerian.
The government, however, assured Nigerians that it would not be 100 percent as telecom operators are currently pushing for it.

The minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, disclosed this during yesterday’s stakeholders’ meeting with Mobile Network Operators (MNOs) in Abuja, adding that consultations and engagements were ongoing.

He noted that the Nigerian Communications Commission (NCC), the industry regulator, will soon approve the new tariffs and make them public to Nigerians. “You have seen over the past weeks that some of these companies have been agitated 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 devise a clear directive on how we will go about it.

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“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 and that from the regulation side, we put the right regulations in place that can ensure the growth of this sector, ” the minister said.

Dr. Tijani emphasised that the federal government would no longer leave investments in infrastructure in the sector to private companies alone, saying, “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. I think what the world is talking about today is meaningful connectivity.

“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.”

In his reaction, the executive vice-chairman of the NCC, Dr Aminu Maida, said that the purpose of the meeting with stakeholders was to strengthen the industry and make it sustainable for the benefit of all Nigerians.

“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 per cent tariff increase.

“I know that Nigerians are agitated to hear the exact percentage approved. We are still going through some stakeholder engagements, but you will hear from us within a week or two.”

He disclosed that the commission had provided a number of tools and instruments for compliance service quality by revising the quality-of-service regulations.

According to the NCC boss, the MNOs must comply with simplified templates showing Nigerians’ charges per minute for voice calls, SMS, and a megabyte of data.

“We are moving away from the regime where you will have a main rate, and then you will now have a bonus at a different rate.

“It often makes it complicated and difficult for Nigerians to understand what they are being charged for.

“This is one of the things when we took a lot of time over the past year looking at data. There is this agitation that the MNOs are stealing our data,” he said.

In his reaction, the CEO of Airtel Nigeria, Dinesh Balsingh, said a tariff increase is necessary for telecoms to deliver superior connectivity and promote digital inclusion.

Represented by Femi Adeniran, Airtel media spokesperson, Balsingh said, “The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.

“This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he said.

Although the federal government has not set the date yet for the tariff increase, probably for more consultation, reports suggest that the increase might come before the end of January or early February.


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Tags: Bosun TijaniDr Aminu MaidaNigerian Communications Commission (NCC)
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