By Adekunle Peters/Lagos
Mobile phone users in Nigeria will soon begin to pay more for calls, data and other telecommunications services, following the approval of telecom service tariff hike of between 30 and 60 percent by the Federal Government.
According to Nigeria’s Minister of Communications and Digital Economy, Bosun Tijani, the hike is necessary to support continued investment in the sector, which he described as essential for driving Nigeria’s economic growth.
He noted that telecommunications companies in the country are continuously investing in equipment and infrastructure to stay relevant, despite the skyrocketing information.
“The sector is about investment in infrastructure, the technologies are changing, so you have to keep investing in technology. For example, older technologies like 3G will eventually be phased out as more advanced technologies are introduced.
“We all know that there is inflation, and to ensure the sector’s growth, we must keep importing capital. In the first quarter of 2024, foreign direct investment in our sector, driven by telecommunications companies, was nearly $199 million, surpassing the total inflow for 2023. If we are to reach a $1 trillion economy, mobile network operators must invest at a faster pace,” he said.
Nextnewsonline reports that the CEO of MTN Nigeria, Karl Toriola, had on January 3 this year, disclosed that the company sent a proposal to the Nigerian Communications Commission (NCC) for a 100 percent service tariff increase.
Also, the Chairman of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbenga Adebayo, recently threatened a shutdown of operations without a tariff hike.
