Bismarck Rewane, CEO of Financial Derivatives, has endorsed the proposed increase in telecom tariffs, asserting that it will boost productivity and help moderate inflation in Nigeria’s economy.
In a recent appearance on Channels Television’s Business Morning, Rewane explained that higher tariffs would lead to improved services, thereby enhancing overall productivity.
Telecom operators have requested a 100% tariff hike to counter rising operational costs, including inflation and increased service delivery expenses.
Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has indicated the government’s intent to adjust tariffs, with the Nigerian Communications Commission (NCC) set to finalize the details.
Rewane noted that investor confidence in the sector is already rising, citing a 10% increase in MTN’s share price to N220.
He anticipates that the tariff increase, coupled with further investments, will make the telecom industry more sustainable, indirectly boosting productivity and output.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal,” Rewane stated.
He predicts a more moderate tariff adjustment of between 40% and 50%, rather than the full 100% proposed by operators.
The NCC has scheduled meetings with telecom consumer groups to discuss the proposed hike, aiming to balance consumer concerns with the need for industry sustainability.
A final decision on the tariff adjustment will be announced after these consultations.
How Increased Investment in Telecommunications Boosts Productivity in Low-Income Countries
Collectively, these factors lead to a more connected, efficient economy where businesses and individuals can maximize their productivity, contributing to long-term inflation moderation (by producing more with the same resources and thus lowering prices).
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