Bosun Tijani, the minister responsible for Communications, Innovation, and Digital Economy, has revealed that the expected rise in telecom service prices could result in a 30 to 60 percent increase in the baseline costs of calls, SMS, and data.
Get real-time news updates from Dailylight! Follow us on our WhatsApp channel for breaking news, Job updates, Cryptocurrency updates, exclusive stories and scholarship updates, and educational videos.
This figure is lower than the 100 percent increase requested by telecom companies. The minister made this statement during a recent appearance on a Channels TV program, asserting that the 100 percent increase sought by telco operators is unfeasible.
SEE ALSO: SMEDAN commences new program #StartWithSMEDAN to boost Small Businesses
He mentioned that the hike will be within the range of 30 percent to 60 percent. “It shouldn’t exceed anywhere between 30 percent to 60 percent.”
If the upper limit of 60 percent is implemented, the average charge for phone calls will rise from N11 to N17.60 per minute, SMS fees will go up from N4 to N6.4, and the cost of a 1GB data bundle will increase from N287.5 to N460.
He mentioned that the hike will be within the range of 30 percent to 60 percent. “It shouldn’t exceed anywhere between 30 percent to 60 percent.”
If the upper limit of 60 percent is implemented, the average charge for phone calls will rise from N11 to N17.60 per minute, SMS fees will go up from N4 to N6.4, and the cost of a 1GB data bundle will increase from N287.5 to N460.
Related stories
This announcement comes after a decade-long push by telcos for tariff increases, as they have dealt with a tough operating environment that has exacerbated their operating costs by 300 percent over the years.
Significant losses recorded in 2023, following a major devaluation of the naira, have further intensified telecom companies' demands for tariff increases.
In December, Tijani acknowledged that the tariffs would need to rise to ensure the sustainability of the industry.
In December, Tijani acknowledged that the tariffs would need to rise to ensure the sustainability of the industry.
Karl Toriola, the CEO of MTN Nigeria, noted that while telcos have requested a 100 percent increase, the Nigerian Communications Commission (NCC) might not grant such an extensive increase due to the sensitivity towards the current economic condition of the country.
Nevertheless, he expressed optimism, stating, “We are hopeful and optimistic that the realities are evident, and the appropriate decision will be made for the industry's sustainability.”
Nevertheless, he expressed optimism, stating, “We are hopeful and optimistic that the realities are evident, and the appropriate decision will be made for the industry's sustainability.”
Tags
Tech NEWS