The Federal Government has approved a 50% hike in telecommunications tariffs to avoid potential job losses and prevent the collapse of several companies.
Dr. Bosun Tijjani, the Minister of Communications, Innovation, and Digital Economy, emphasized that without the tariff increase, there was a risk of some companies shutting down, which could lead to significant job losses.
Tijjani made the comments during a press briefing at the State House in Abuja after meeting with Airtel’s leadership and its Founding Chairman, Sunil Bharti Mittal, who had an audience with President Bola Tinubu.
He stated that the benefits of the tariff increase outweigh any negative consequences, as the telecommunications sector plays a vital role in Nigeria’s economy.
The minister explained that the telecommunications value chain employs nearly half a million Nigerians, making it a critical contributor to the nation’s economy.
The decision to raise tariffs was made after careful consideration, with telecom operators’ requests for tariff hikes being reviewed even before President Tinubu took office. The president insisted on a comprehensive evaluation before granting approval.
To determine the most sustainable tariff bracket, the government commissioned a study led by KPMG. Tijjani added that, beyond affordability, the goal is to provide meaningful access to quality telecommunications services.
The Nigerian Communications Commission (NCC) has been focusing not only on service quality but also on improving the overall user experience. Now that telecom operators have the opportunity to raise tariffs, they are expected to prioritize maintaining high-quality services.
Tijjani also highlighted the government’s investments in expanding telecommunications infrastructure, including the 90,000 kilometers of fiber-optic cables and the approval for 7,000 additional telecom towers in rural areas.
While private sector investments are essential, the government is also stepping in to ensure nationwide high-quality connectivity.
Airtel Chairman Sunil Bharti Mittal reaffirmed Nigeria’s importance to the company’s future in Africa, stating that the country is crucial to their African strategy.
Mittal expressed optimism that despite Nigeria’s economic challenges, including currency devaluation, Airtel aims to restore its share of the African market to previous levels within the next two to two and a half years.
He also pledged Airtel’s continued commitment to Nigeria, aiming to bring the country up to par with India in terms of digital innovation and financial inclusion.
Mittal announced that Airtel will award scholarships to 10 Nigerian students for full engineering degrees in top Indian institutions, as part of its broader educational initiative.
Additionally, Airtel expressed support for Nigeria’s Three Million Technical Talent Programme, focusing on skills development and education.
Airtel remains committed to contributing meaningfully to Nigeria’s progress and education sector.
Punch
