- Bosun Tijani said the Federal Government approved the 50 per cent tariff hike to sustain the telecommunications industry
- Tijani said the increase will ensure telecom companies invest in new infrastructure and improve connectivity
- He said the government will continue to invest in infrastructure to enable technological advancement
Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, says the Federal Government approved a 50 per cent tariff hike for telecommunications companies to sustain the industry.
Tijani noted that the increase in telecom tariff will ensure telcos invest in new infrastructure and improve connectivity.
The minister stated this at the maiden Robotics and Artificial Intelligence Nigeria (RAIN) summit, held in Ibadan, Oyo State, on Saturday, January 25, with the theme, ‘The Rain of Transformation is upon us: CEOs Arise.’
He said, “The new tariff would allow telecommunication companies to be able to invest in new infrastructure and improve connectivity.”
Government infrastructural investment to enable technological advancement
The minister added that the government will continue to invest in infrastructure to ensure technological advancements driven by youths.
He highlighted the strides made by Nigerians in the field of robotics and Artificial Intelligence, adding that the productivity and prosperity of nations will come from the smart application of AI.
Tijani said, “The biggest challenge for governments is individuals. As we invest in infrastructure to drive the progress of technology, we need individuals, we need innovators, we need entrepreneurs to actually build the technologies.
“Governments cannot build the progress that we want to build. What governments will build is the foundation for that progress to happen.”
NCC approved a 50 per cent tariff hike
It will be recalled that the NCC approved a 50 per cent hike in tariff on Monday, January 20, after weeks of deliberations with telecom operators, in response to prevailing operational costs.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) raised several concerns and asked the NCC to upwardly review tariffs.
The operators asked for a 100 per cent hike so they could meet up with rising capital and operational costs.
They also noted that proceeds from the tariff increase would be channelled toward infrastructural upgrades and enhancing service quality.
However, on January 16, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, said a hike in telecom tariffs would not exceed 60 per cent, saying that a 100 per cent increase would hurt Nigerians and hamper the country’s economic growth.
The 50 per cent tariff hike was met with rejection from telecommunication subscribers, as they threatened legal action against the NCC if the hike is not reviewed downward to between five and 10 per cent.
Proceeds from tariff hike will go into infrastructure upgrade, service quality – Telcos
Meanwhile, TheRadar earlier reported that telecommunications operators (telcos) in Nigeria said the proceeds from the proposed 100 per cent tariff increase will be channelled to upgrades of major network infrastructure and service quality.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, disclosed this in a column published in BusinessDay on Monday, January 6.
