Nigerian telecoms set for tariff hike

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The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.

Rewane made this statement on Channels Television’s Business Morning on Thursday.

 the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, on Wednesday confirmed plans to increase telecoms tariffs, saying the Nigerian Communications Commission, NCC, would come up with modalities for the adjustment.


According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.

He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.

Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.

“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.

“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, 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.

“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.