May 10, 2024 - In Abuja, a significant disagreement has surfaced between the Nigerian Federal Government and major telecommunication operators regarding the proposed hike in telecom tariffs. At a key industry event, differing viewpoints were presented, with operators asserting the necessity of a tariff increase amidst challenging economic conditions, while the government stood firm against such measures.
The discussions took place at the GSMA-Nigeria Digital Economy Report presentation, attended by notable industry figures including Bosun Tijani, the Minister of Communications, Innovations and Digital Economy, and executives from Nigeria's leading mobile network operators (MNOs).
Representatives from the Association of Licensed Telecommunications Operators of Nigeria (ALTON), including Gbenga Adebayo, and CEOs from major telecom firms like MTN Nigeria, Globacom, 9Mobile, and Airtel Nigeria, expressed a unanimous stance on the inevitability of a tariff hike. They cited the current economic outlook and infrastructural challenges, particularly the unstable power supply, which they warned could lead the telecom sector towards dysfunctionality akin to the power industry if tariffs are not adjusted.
Conversely, Minister Tijani articulated the government's position, emphasizing that a tariff increase is not considered a viable solution. Addressing the assembly, he conveyed the government’s commitment to tackling the sector's challenges systematically without resorting to price increases. “Hiking telecom tariff is not an option and should not be the only solution on the table,” Tijani stated, underscoring the government's strategy to explore alternative avenues to support the telecom industry.
During his speech, Tijani also outlined the federal government's initiatives aimed at bolstering the digital economy. These include improving infrastructure, addressing issues like multiple taxation and the Right of Way (RoW) charges, enhancing service quality, and closing access gaps through broader broadband penetration.
Furthermore, the minister revealed plans for significant investments in fiber optic networks, which he described as crucial for achieving a robust digital economy. "We believe that in the next two to three years, we can deliver on the 90,000 kilometers of fiber network that is required," Tijani explained. He projected that with these advancements, Nigeria could potentially become a regional hub for digital services across West Africa.
The ongoing debate highlights a critical junction for Nigeria’s telecom sector, as it seeks to balance economic sustainability with the growth and expansion of digital services essential for the country's development. As discussions continue, stakeholders from both the government and the telecom industry are urged to find common ground that ensures the viability of the sector while considering the economic impact on consumers.
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