The Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has said the federal government may consider between 30 and 60 per cent hike in tariffs and not the 100 per cent proposed by telecommunications companies in the country.
“I think it should not be more than anywhere between 30 and 60 per cent,” he said during an interview on Channels Television on Wednesday night, monitored by Business Post.
He said that even though the companies are insisting that a 100 per cent increase is what is needed to stabilise the sector, 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,” Mr 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.
This points to continued standoff after it was widely expected that the tariffs will be announced last Friday.
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.
Mr 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.
Speaking recently, the Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, said telcos are proposing a 100 per cent increase in tariffs to the Nigerian government.
He, however, pointed out that it won’t get such approval but said a substantial change, beneficial to all stakeholders, could be agreed upon.
“So, I’m not sure they will give us 100 per cent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be,” Mr Toriola said.