The planned increase in tariff of telecommunications companies in Nigeria has received the backing of the Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane.
Rewane, who spoke in a Channels TV interview program over the weekend, said the tariff increase was the only way to sustain the businesses.
Ripples Nigeria reports that the Telcos had a few weeks ago sought the approval of the Nigerian Communications Commission (NCC) to hike their tariff,
In the programme, Rewane recalled that the last time there was a telecom price review was in 2013, saying the prices of every other service in Nigeria have gone up in multiple-folds since then.
He said the current tariff regime was inhibiting the operators’ capacity to invest more in infrastructure, hence, the quality of their services has been deteriorating in recent times.
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Rewane said: “The last time there was a tariff review for the telecom sector was 11 years ago, in 2013. At that time, we had a president by the name of Goodluck Jonathan. Ever since then, there’s been President Buhari and now President Tinubu, and the price of a bag of cement at that time was 1,800. Today that bag of cement is 7,500, it had gone higher by 4,066%.
“A bag of rice at that time was N12,000 and now it’s up to N77,000. That is a 525% increase. The price of diesel was N196 and it went all the way to N1,900, that’s up to 1,000% and now it’s down to N1,400, which is an increase of 614%.
“The Naira was exchanged at N157 to a dollar, today, it’s N1,400 in the parallel market, a depreciation of 763%. So, if you check cumulative inflation from 2013 to now, it is 387%. The minimum wage then was N18,000, today, the labour union is asking for N615,000.
“Just like petrol and electricity, if you go across neighboring countries where their income and their GDP is lower than ours how come there are no queues in Benin Republic and no breakdown in power supply even in Togo?
“How come the telecom system works efficiently? if you underinvest in any sector, if you don’t manage that sector efficiently you will get low returns and inefficient outcomes so that is what it is you can’t eat your cake and have it. You have to pay to get quality service.”
By: Babajide Okeowo
The post Rewane justifies impending increase in tariffs for MTN, Glo, others appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.
