The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has expressed support for the proposed telecom tariff hike, citing its potential to enhance productivity and moderate inflation in the economy.
Speaking on Channels Television’s Business Morning on Thursday, Rewane highlighted the economic benefits of the tariff adjustment, which has been proposed by telecom operators and is currently under review by the Nigerian Communications Commission.
“Yes, it helps to reduce inflation because it increases productivity,” Rewane said, explaining the broader implications of the proposed adjustment.
Telecom operators have submitted a proposal to the NCC seeking a 100 per cent increase in tariffs to address rising operational costs, including inflation and higher service delivery expenses.
Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had earlier confirmed the government’s intent to adjust tariffs, with the NCC set to finalize the modalities.
Rewane noted that the proposed tariff hike reflects investor confidence in the sector. “Yesterday, the price of MTN shares went up by 10 per cent to N220. Investors have already factored that in and are expecting a lot of good goodies,” he said.
He emphasized that the increase, combined with additional investments, would contribute to making the telecom industry sustainable, indirectly boosting productivity and output.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal,” Rewane added.
He acknowledged the alignment between policymakers, regulators, and operators on the need for sustainability in the telecom sector.
“We heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.”
Rewane, however, dismissed the likelihood of a 100 per cent hike, predicting a more moderate adjustment of between 40 per cent and 50 per cent per cent.
“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, which is fair after so many years of static changes,” he said.
Meanwhile, the Nigerian Communications Commission has scheduled a meeting with telecom consumer groups to debate the proposed tariff hike.
The discussions aim to ensure consumer concerns are addressed while balancing the operators’ needs for sustainability.
A final decision on the tariff adjustment will be communicated after the consultations are concluded.
The NCC’s decision on the proposed tariff hike is expected to balance industry sustainability with the need to protect consumers from excessive cost burdens.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.