Telecoms tariff hike capped at 60%, says Comm Minister

By Adanna Nnamani, Abuja

Following recent agitations for an increase in telecommunications service tariffs by operators, Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has stated that any increase will not exceed 60 percent.

During an appearance on a Channels Television programme on Thursday, Tijani, who had earlier rejected the telecom companies’ request for a 100 percent hike, stated that the anticipated increase would fall between 30 percent and 60 percent.

According to him, agreeing to a 100 percent increase would negatively impact Nigerians and stifle economic growth.

He also mentioned that his team’s recommendations, based on KPMG reports, will soon be finalised and shared.

He said: “I think they should only increase by not more than anywhere between 30 to 60 percent.

“We are asking difficult questions, like can we possibly increase the local content in that sector, meaning can we reduce the amount of imports that are coming into that sector, which means they have to look for foreign exchange, which is more expensive.

“We have declared all their infrastructure as critical national infrastructure, that’s something they’ve been looking for for years. President Tinubu did that last year.

“The reason is that when people go and vandalise telecommunications equipment, it drops the quality of service that people get, but it also costs these companies a lot to repair. We’re taking that away.

“If you look at the tax reform, for instance, there are a number of things there to harmonise taxes that they pay, to reduce it in a way that is good for the country, but also allows these companies to thrive.

“We are, as a country, investing in that 90,000 kilometres that I mentioned. When we do the investment, it will allow these companies to be able to reach more people.

“If we are investing in towers in difficult-to-reach locations, in rural areas, it will give them the opportunity to increase the pool of customers that they have without making heavy investments.”