The recent 50% tariff hike in the telecommunications sector which sparked intense debate amongst Nigerians has prompted a a reaction from the Minister of Finance, Wale Edun.
Recall that the Nigeria Labour Congress (NLC) had criticised the Federal Government for approving the increase.
Edun, who defended the increase via Arise Television on Thursday, stated that the tariff adjustment is essential for sustaining the sector amid rising operational costs and inflation.
According to Edun, “There has been inflation and rising costs and that has to be reflected for the telcos. There has been a high cost of living that has to be reflected.”
He emphasized that the 50% tariff adjustment is a starting point for “compromise, timing, and sequencing necessary changes.”
The Nigerian Communications Commission (NCC) approved the tariff hike on Monday, citing the need to address the significant gap between operational costs and current tariffs.
The commission aims to ensure that the delivery of services to consumers is not compromised while supporting the sector’s financial health.
Edun however urged telecommunication companies to enhance service delivery in line with the price increase, ensuring that telcos operate efficiently, terminate calls seamlessly, and deliver high-quality services.
He reiterated the government’s commitment to fostering a thriving telecommunications sector that supports innovation, economic growth, and job creation.
“The 50 percent tariff is a situation that will be looked at on a forward-looking basis. As we go forward, there will continue to be review, consultations, and discussions in this area,” he added.
