Telecommunications prices will shortly rise, according to Dr Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, albeit the increase will not be as large as the 100% increase that operators are proposing.
After a stakeholder meeting with mobile network operators in Abuja on Wednesday, Dr Tijani stated that continuing interactions and talks were taking place. In due time, he said, the Nigerian Communications Commission would authorise the revised charges and make them public.
He went on to say: “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.
“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 added.
Dr Tijani clarified that the government’s main goal was to find a balance between safeguarding Nigerians and allowing telecom firms to keep making large investments in the industry. To ensure sustainable growth, he also emphasised the necessity of appropriate laws.
Since this strategy had limited expansion to areas with immediate returns on investment, Tijani also disclosed that the Federal Government would no longer rely exclusively on private enterprises to invest in telecommunications infrastructure.
According to him, significant investments are needed to guarantee that customers receive high-quality service and relevant connectivity.
The Minister went on to say: “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. We will not want this conversation to just be about tariff increases. 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,” he added.
Although operators had asked for a 100% pricing rise, NCC Executive Vice-Chairman Dr Aminu Maida said it was unlikely to be granted. He stated that after continuing stakeholder engagements, the precise proportion would be revealed in a week or two.
To increase openness and compliance, Maida also mentioned that the NCC had revised its quality-of-service guidelines, revealing: “We have looked at all of these factors, and that is why, as 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. There are still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” he added.
Continuing, he clarified that carriers would now have to make their pricing templates simpler so that customers could easily comprehend the costs associated with internet, SMS, and voice calls.
Femi Adeniran, an Airtel media representative, spoke on behalf of Dinesh Balsingh, the CEO of Airtel Nigeria, and stated that the planned rate adjustments were required to counteract the rising expenses of capital and operations. He went on to say that the changes were made to benefit consumers and guarantee the industry’s long-term viability.
He 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.”
As previously reported, MTN Nigeria disclosed that telecom providers are requesting a 100% pricing rise; however, it is still unclear if the Nigerian Communications Commission, the telecom regulator, will accept the plan.
Karl Toriola, the CEO of MTN Nigeria, made the revelation available to BrandSpur telecom and information news desk, stating that the industry’s sustainability—which has been under a lot of financial strain because of growing operating expenses—requires the proposed pricing increase.
Additionally, Dinesh Balsingh, the CEO of Airtel Nigeria, previously stated that rate adjustments are required for the long-term viability of the telecom industry due to the 300 percent increase in operating costs over the past 18 to 24 months. The National Association of Telecoms Subscribers, on the other hand, has opposed the proposed hike in telecommunications rates, calling it “insensitive” and adding to the financial strain already placed on consumers.
Adeolu Ogunbanjo, President of the National Association of Telecommunications Subscribers (NATCOMS), added that if the telecom operators move forward with the raise without first looking into other ways to make money, the group intends to bring a class-action lawsuit. He urged the Nigerian Communications Commission to reject the operators’ request, calling the projected 100% pricing increase unsustainable and unreasonable.
Additionally, it was learnt that the NCC had planned a significant stakeholders’ meeting in Abuja for Thursday to talk about the anticipated 100% rate increase in the telecom industry. To discuss the ramifications of the price rise, representatives from significant consumer advocacy organisations, telecom providers, regulatory agencies, and other pertinent industry stakeholders will convene.
The information was revealed to the local news media on Wednesday by the NATCOMS’ President, who has been a vocal opponent of the idea. He stated: “I had mentioned earlier that there is a need for the NCC to discuss and iron out the issue. But yesterday, I was invited for the meeting and it will be held on Thursday in Abuja at 2 pm.”
During an appearance on Arise TV on Wednesday, Sola Ajulo, President of the Consumer Advocacy Foundation of Nigeria, further confirmed the planned meeting. Ajulo underlined how important the conversations are to determining how much telecom would cost in the future.
According to her: “It’s crucial that all stakeholders are present and agree on the terms, as this will determine whether the government will approve a price increase and under what conditions.”
She pointed out that considering the sector’s economic difficulties, a price hike might be unavoidable. She emphasised, however, that given Nigeria’s current economic challenges, it is crucial to make sure that the terms of any increase are reasonable and beneficial to consumers’ welfare.
