Tariff increase: Minister hints on govt’s decision as companies insist on 100%

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, has reiterated that the telecoms operators would not be allowed to increase tariffs by 100 per cent

DAILY POST reports that the telecoms companies have been asking for an increase in tariff for some years now.

They are citing rising operational costs, inflation, naira devaluation, among others.

Appearing on Channels Television’s programme, Politics Today, the Wednesday’s edition, the Minister said the government acknowledged that a tariff increase in the telecom sector is due.

Asked if there is a percentage threshold for the impending tariff increase, the Minister said, “I think it should not be more than anywhere between 30 to 60 per cent.”

The Minister further revealed that the companies are insisting on a 100 per cent increase which would enable them to stabilise the sector, but added that the government knows that such a level of increase will be harmful to the people.

“We have already made it clear that we are not going to approve 100 per cent. These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.

“But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100 per cent,” Tijani said.

The Minister noted that the Nigerian Communications Commission, NCC, is still working on the tariff increase and is yet to arrive at a particular figure.

According to him, it is necessary to look at the numbers, the implication any increase will have on the people and the sustainability of the sector for proper balancing.

Tijani said that for mobile network operators to improve their service to the required standard, there is a need for them to keep improving their equipment.

Tariff increase: Minister hints on govt’s decision as companies insist on 100%

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