Government allows telecom tariff increases

Nigerian telecom operators, including MTN, will soon get some relief as the country’s government gears up to allow an increase in mobile service prices after a six-year campaign by the industry. However, the tariff increase is set to be about half of the 100% that mobile providers are lobbying for, reports BusinessLIVE. During an appearance on Channels Television, Nigeria’s Minister of Communications, Innovation and Digital Economy, Bosun Tijani, suggested that the tariff hike should be held at a threshold of between 30% and 60%. The final increase has yet to be determined. Tijani said the government recognised the need for the tariff rise as a way to spur greater investment in telecoms infrastructure and service, all the while trying to protect economically vulnerable consumers. Tariffs have remained unchanged for 11 years in Nigeria. In 2019, call tariffs stood at about 3.3 US cents, dropping to about 1c at present. Over the same period, mobile telecom revenue in Nigeria is expected to fall to about $3.05bn this year from $6.39bn in 2019. The NCC oversees prices for the industry, with operators not allowed to make changes without the regulator’s permission. The tariff hike request is part of an ongoing effort to right-size an industry devastated by inflation and a historic currency devaluation.

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