How Telecom Tariff Hike Will Reduce Inflation In Nigeria

• Rewane supports telecom tariff hike to boost productivity and inflation.
• NCC reviewing operators’ proposal for sustainable sector and quality service.
• Tariff increase expected between 40% to 50% after consultations.

The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has supported the proposed telecom tariff hike, citing its potential to boost productivity and moderate inflation.

Speaking on Channels Television’s Business Morning, Rewane explained the economic benefits of the tariff adjustment proposed by telecom operators and currently under review by the Nigerian Communications Commission (NCC).

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EKO HOT BLOG reports that according to Rewane, telecom operators are seeking a 100 per cent tariff increase to address rising operational costs, including inflation and higher service delivery expenses.

Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, confirmed the government’s intent to adjust tariffs, with the NCC finalizing the details.

Rewane noted that the proposed hike reflects investor confidence in the sector, mentioning that MTN shares rose by 10 per cent to N220. He added that the increase, along with additional investments, would sustain the telecom industry while boosting productivity and moderating inflation.

However, Rewane dismissed the likelihood of a 100 per cent hike, predicting a more moderate adjustment of between 40 per cent and 50 per cent.

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He stated, “Will they get 100%? No, they will definitely not. We suspect that we are likely to see something between 40 per cent and 50 per cent.”

Meanwhile, the NCC has scheduled a meeting with telecom consumer groups to debate the proposal, aiming to address consumer concerns while ensuring industry sustainability. The final decision on the tariff adjustment will be communicated after consultations.

Rewane emphasized the alignment between policymakers, regulators, and operators on the need for a sustainable telecom sector, highlighting the importance of balancing quality service and reasonable costs for consumers.

The NCC’s decision is expected to address operators’ sustainability needs while protecting consumers from excessive costs.

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