Financial Derivatives CEO Bismarck Rewane has said the increase in telecommunication tariffs proposed by the Nigerian Communications Commission (NCC) would help reduce inflation.
Tribune Online reports that Nigeria's Minister of Communications, Innovation and Digital Economy, Bosun Tijani, confirmed that the Nigerian Communications Commission (NCC) plans to increase telecom tariffs, but not by 100 percent.
Rewane, during an appearance on Channels Television's Business Morning on Thursday, emphasized that the move would make the telecoms sector more sustainable.
He said: “Yesterday, the MTN share price rose 10% to 220. Investors have already taken this into account and are anticipating positive results.”
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“More importantly, increased tariffs and additional investments will boost the sustainability of the sector. This will lead to higher productivity, which can indirectly help moderate inflation.
“The goal is to reduce inflation, and we have heard clear statements from policymakers like Bosun Tijani that this is about building a sustainable industry.
“Regulators have also emphasized the importance of maintaining quality of service,” he added.
Rewane noted that telecoms operators like MTN are preparing for the changes and sees economic benefits from increased productivity and production.
He also noted that the authorities are aligned in their belief that the tariff adjustment will help control inflation.
“I don't think it's a bad deal overall,” Rewane concluded, echoing the minister's statement that the tariff increase will not be a 100% increase.
“Will they get 100%? No, we expect it to be between 40% and 50%, which is reasonable after years of stagnant rates,” he said.
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