The Nigerian government has rejected a proposal by telecommunications companies to raise tariffs for data, voice, and text messages, citing that increasing prices is not the solution to the sector’s challenges. The Minister of Communications Innovations and Digital Economy, Bosun Tijani, urged the companies to explore alternative innovative approaches to alleviate cost pressures and high operational expenses.
Tijani made these remarks during the unveiling of the Nigeria Digital Economy Report in Abuja. The report, launched by the GSM Association, scrutinizes the Nigerian economy and the government’s digital transformation strategy, presenting the latest statistics on connectivity and offering forecasts on the role of digitization in propelling economic growth.
Earlier this year, telecommunications companies in Nigeria proposed an increase in call, data, and other service charges following several unsuccessful attempts over the past 11 years. In a bulletin issued by the Association of Licensed Telecom Operators of Nigeria and the Association of Telecommunication Companies of Nigeria, the telcos argued that current prices are insufficient to sustain their business operations.
Addressing the matter, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, highlighted that investments in the sector had begun to decline due to currency devaluation, rising business costs, fuel expenses, numerous taxations, and other factors. He emphasized that the tariff hike is unavoidable amidst the current economic challenges, stating that only a continuous influx of investments can uphold the sector.
In reaction to the report, Tijani conveyed to the Mobile Network operators that raising tariffs is not a pragmatic solution and should not be considered as the remedy to the challenges confronting the industry. He made an appeal on behalf of the struggling masses, who are already contending with the current state of the economy, urging the operators to reassess their decision.
Tijani emphasized that addressing the challenges facing the telecoms industry requires a holistic approach, focusing on creating a conducive business environment for investors. He stated that the government is committed to providing the right policies and intentions to support the sector’s growth and urged the telecoms companies to collaborate positively to address these issues for the benefit of the economy and national security.
The Minister emphasized the importance of a collective effort to address the challenges facing the telecoms sector, urging all stakeholders to work together towards finding sustainable solutions that benefit both the industry and the Nigerian people.
