FG Defends Telecom Tariff Hike: Saving Jobs or Squeezing Nigerians?

Why the Hike? The Government’s Explanation

According to the Minister of Communications and Digital Economy, Bosun Tijani, the tariff increase was a tough call. He said, “If we chose not to allow the increase in tariff, we would be at the risk of losing jobs, as some of these companies could pack up.” Basically, the government fears that without the extra revenue, telecom companies might go under, leading to widespread unemployment.

Saving Jobs vs. Squeezing Pockets

The telecom sector is a major employer in Nigeria, providing jobs for nearly half a million people. The government argues that allowing the tariff increase protects these jobs and ensures the sector’s long-term viability. However, critics argue that this increase will disproportionately affect low-income Nigerians who rely on affordable mobile data and voice services. The timing of this increase, amidst current economic hardship raises concerns about its impact on the average Nigerian.

KPMG’s Role: Finding the ‘Optimal Rate’

To figure out the right amount for the tariff increase, the government brought in KPMG to conduct a study. This study was meant to find a rate that would be sustainable for telecom companies without being too crippling for consumers.

More Than Just Affordability: Quality Matters

The government claims its focus isn’t just on making telecom services affordable, but also on ensuring “meaningful access.” This means not just having a connection, but also having a reliable and high-quality connection. The Nigerian Communications Commission (NCC) is pushing telecom companies to prioritize the quality of service they provide.

Infrastructure Boost: 90,000km Fiber-Optic Network

To improve connectivity across the country, the government says it’s investing heavily in telecom infrastructure. This includes expanding Nigeria’s fiber-optic network by 90,000 kilometers and building 7,000 new telecom towers in rural areas. This is supposed to ensure that even people in remote areas have access to reliable internet and mobile services.

Government Intervention: Bridging the Gap

While the government wants private companies to invest in the telecom sector, it’s also stepping in to make sure everyone has access to good quality connectivity. This “collaborative approach” aims to fix the gaps in connectivity and improve services across the nation.

The Bigger Picture: Economic Challenges and Tough Decisions

Minister Tijani emphasized that the government is aware of the economic challenges facing Nigerians. He stated, “This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike.” However, the big question remains: is this the right balance?