FG won’t allow more than 60% telecoms tariff hike, says Tijani

The Nigerian Federal Government has stated that it will not permit telecom companies to increase their tariffs by more than 60%. This declaration comes amid concerns about the rising costs of telecommunications services, particularly as companies in the sector have been pushing for higher charges to account for operational challenges, such as inflation and increased costs of equipment.

Tijani, a government official, made it clear that while the government recognizes the difficulties faced by telecom operators, especially with the high cost of doing business in the country, it will not allow excessive hikes that could negatively impact consumers. The government's stance is to strike a balance between supporting the telecom sector and protecting the interests of the general public, ensuring that services remain affordable while also allowing telecom companies to sustain their operations.

Telecom companies in Nigeria have been under pressure due to a combination of factors, including high energy costs, fluctuating exchange rates, and regulatory requirements. Despite these challenges, the government has emphasized that the telecom industry is critical to the country's economy, especially in terms of enabling digital transformation and improving connectivity across regions.

The decision to limit tariff hikes to a maximum of 60% is likely to provide some relief to consumers, particularly in a country where access to affordable telecom services is key to business, education, and social inclusion. However, telecom operators may need to explore alternative ways to improve their profitability, such as enhancing operational efficiency, expanding service offerings, or investing in new technologies.

This regulatory intervention by the Federal Government highlights the delicate balancing act that policymakers must perform in managing the telecom sector's growth while ensuring that the burden of price hikes does not disproportionately affect Nigerians, many of whom are already dealing with economic hardship.