The Federal Government,on Thursday defended its decision to approve a 50% tariff hike for telecommunications services, hinging it on job protection for Nigerians and the need to stop the multinational firms leaving the country.
Minister of Communications and Digital Economy, Dr. Bosun Tijani, made this clarification on Thursday, after he led the management of Airtel Nigeria to the Presidential villa, Abuja to meet with the President, Bola Tinubu.
According t the decision aligns with the need to ensure sustainability of foreign investment amidst rising operational costs and inflationary trend.
“If we chose not to allow the increase in tariff, we would be at the risk of losing jobs, as some of these companies could pack up, and when you weigh that, it’s also not the best thing for the economy,” the minister said.
Tijani explained that the government had considered the decision, following the critical role the telecom sector plays in the country’s economy, he noted that the sector, including its entire value chain, employs nearly half a million Nigerians, making it a significant contributor to national development.
Tijani revealed that the tariff increase request had been pending before the current administration took office, but President Bola Tinubu had insisted on a thorough evaluation before approving any adjustments.
“This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike”, he said.
“To determine the optimal rate for the adjustment, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff increase.”
Tijani emphasised that the government’s focus extends beyond affordability to ensuring “meaningful access” to telecommunications services.
This involves not only providing connectivity but also guaranteeing high-quality service delivery, ensuring that Nigerians receive the full benefits of digital connectivity.
“The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority”, he stated.
To achieve its objectives, Tijani highlighted the government’s continued investment in telecommunications infrastructure, aiming to enhance connectivity and support economic growth across Nigeria.
“These include the expansion of Nigeria’s fiber-optic network by 90,000 kilometers and the recent approval by the Executive Council for the construction of 7,000 additional telecom towers in rural areas.”
The Minister affirmed that while private sector investment in the telecom industry remains crucial, the government is actively intervening to guarantee universal access to high-quality connectivity throughout Nigeria
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