However, the Minister the increase cannot be 100 per cent as proposed by operators.

Telcos Seek 100% tariff Increase

Recall that telecommunications companies (telcos) in Nigeria recently proposed a 100 per cent hike in their tariffs, pending approval from the government.

The proposal, which has been submitted to the Nigerian Communications Commission, aims to address rising operational costs, including inflation and increased service delivery expenses.

Mr. Karl Toriola, the chief executive officer, MTN Nigeria, disclosed this while appearing on Arise TV.

Just as the CEO expressed that it remains uncertain whether the Nigerian Communications Commission (NCC) —the telecom regulator, will approve the proposal, Tijani speaking during an interview with journalists on Wednesday, according to a video shared by Channels TV on X (formerly Twitter), said that the proposal, submitted to the NCC seeks to address rising operational costs, including inflation and higher service delivery expenses.

Government Accept Tariff increment …but not 100%

Speaking after a stakeholders’ meeting in Abuja, the minister highlighted the importance of proper regulations to ensure the telecommunications sector’s sustainable growth.

He emphasised the need for a balanced approach to support the industry amidst global inflationary pressures.

“The verdict is that tariffs will increase, but not by 100 per cent. We are still reviewing the commissioned study, and the Nigerian Communications Commission will issue directives to strike a balance. This is about protecting Nigerians while ensuring telecom companies can continue to invest significantly,” Tijani said.

He outlined key initiatives under consideration, including enforcing the executive order to safeguard telecommunications infrastructure and increasing local content in the industry. These measures aim to sustain the sector’s contributions to Nigeria’s economic development.

Tijani also acknowledged telecom operators’ push for substantial tariff adjustments, attributing it to rising operational costs.

He noted that the government is working to mitigate the impact of tariff hikes on Nigerians through targeted measures.

“The study we commissioned is helping us explore ways to sustain the sector without causing significant hardship for our people. Even where challenges exist, we are devising strategies to alleviate them,” he added.

Why Telcos are asking for tariff reviews

Engineer Gbenga Adebayo, the chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.

He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.

The telecom chief warned that without an immediate tariff adjustment, operators may resort to service shedding, leading to limited availability of telecom services in certain areas.

Similarly, Dinesh Balsingh, Airtel Nigeria’s chief executive officer, cited rising operational costs, which have surged by over 300 per cent in the last 18 to 24 months, have made tariff adjustments necessary for the long-term sustainability of the telecom sector.

According to Balsingh, the proposed tariff adjustments aim to ensure the sector’s sustainability while delivering significant benefits for Nigerian consumers.

“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 per cent in the last 18 to 24 months alone.

“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh emphasised.

Mr. Bolaji Balogun, the chief executive officer of Chapel Hill Denham, had also called on the industry regulatory to consider altered perspective around tariff to encourage investments.

Balogun said that reviewing the telecom tariffs has become inevitable due to the present business climate in the country.

He argued that 11 years since the tariffs were last reviewed, it makes economic and business sense to encourage investments in the sector that caters for not less than 14% of the nation’s GDP.

He further said that the federal government should lead the way towards localisation and domestication of certain operations and equipment in the sector.

The shift, he said, would become a critical driver for sustained economic growth, technological advancement and national development.

The post Finally, FG Considers Upward Review of Telecom Tariffs appeared first on Tech | Business | Economy.

Mr. Bolaji Balogun, the chief executive officer of Chapel Hill Denham, made the recommendation during his keynote presentation at the “Telecoms Industry 2.0” forum, organised by Financial Derivatives Company (FDC) in Lagos on Tuesday.

The forum gathered key players in the sector to discuss its vast potential, current challenges, and the strategic path forward.

Balogun said that reviewing the telecoms tariffs has become inevitable due to the present business climate in the country.

He argued that 11 years since the tariffs were last reviewed, it makes economic and business sense to encourage investments in the sector that caters for not less than 14% of the nation’s GDP.

He further said that the federal government should lead the way towards localisation and domestication of certain operations and equipment in the sector. 

The shift, he said, would become a critical driver for sustained economic growth, technological advancement and national development.

He emphasised the telecoms sector’s immense potential but warned that this potential would remain untapped without deliberate and strategic interventions focused on localisation.

He said: “Nigeria’s telecommunications sector is poised for exponential growth, but we must prioritize domestication and localisation to unlock its full potential,” Balogun stated. He highlighted the need for a paradigm shift from an import-dependent model to one that nurtures and supports local production capabilities.

“Government policies must pivot to support local manufacturers, ensuring that the production of telecommunications equipment is anchored within Nigeria”.

A key component of Balogun’s roadmap was the urgent need for infrastructure development. 

“Expanding our network infrastructure is non-negotiable,” he asserted. “Broadband accessibility should be at the forefront of our efforts, as it is fundamental to achieving digital inclusion and fostering economic growth.”

Balogun also emphasised the importance of developing local talent to sustain the industry’s growth. 

“Investing in STEM education and creating strong linkages between academia and industry is crucial. Our local talent is the bedrock of our telecommunications future,” he said.

Balogun called for a stable and clear regulatory framework, essential for attracting investment and fostering innovation.

“We need policies that are not only clear but also consistently applied. A supportive regulatory environment will help us achieve our growth objectives,” he noted, adding that efficient dispute resolution mechanisms and proactive government engagement are key to creating a business-friendly atmosphere.

He also pointed out the telecommunications sector’s potential to drive financial inclusion.

“Mobile banking and digital financial services can significantly expand access to financial services, especially in underserved regions. The telecoms sector is central to this transformation.”

Also speaking, Mr. Wale Edun, the minister of Finance and the Coordinating Minister of the Economy, represented by Dr. Armstrong Takang, managing director of the Ministry of Finance Incorporated (MoFI), re-echoed the sentiments about the sector’s potential while expressing concern over the slowing pace of investment and job creation. 

He urged a comprehensive reassessment of the sector’s direction.

“We must critically evaluate whether our current trajectory is sufficient to prepare us for the Fourth Industrial Revolution, where telecommunications will be a cornerstone. Emerging technologies like artificial intelligence offer immense opportunities, but we need to ensure our sector is ready to capitalise on them,” Takang warned.

He also noted that while technological advances may disrupt traditional jobs, history shows that they also pave the way for new opportunities.

In her remarks, Doris Uzoka Anite, the minister of Industry, Trade, and Investment, represented by John Uwajumogu, emphasised the transformative potential of Industry 4.0 and the strategic advantage Nigeria has with its youthful population.

She highlighted the pivotal role of telecommunications in driving digital transformation and advocated for robust public-private partnerships as essential for progress.

“The government is committed to creating a conducive environment through initiatives like the National Broadband Plan and significant investments in digital infrastructure and human capital. However, the true key to success lies in fostering strong public-private partnerships,” she said.

“As the global economy becomes increasingly interconnected and decentralised, collaboration between the public and private sectors will be crucial in driving forward our digital transformation agenda.”

Anite further reinforced the government’s commitment to working closely with industry stakeholders to explore and develop opportunities for partnerships that will drive Nigeria’s telecommunications sector into a new era of growth and innovation.

The post ‘Reviewing Telecoms Tariffs will Encourage Improved Investments’, Bolaji Balogun Recommends to NCC appeared first on Tech | Business | Economy.

Facilitated by Chapel Hill Denham’s Nigeria Infrastructure Debt Fund (NIDF), this new financing mechanism will strengthen the expansion of d.light’s low-cost Pay-Go solar products tailored for low-income households across the country.

The financing structure, led and sponsored by African Frontier Capital, operates with the dual mandate of enhancing accessibility to affordable clean energy solutions while ensuring the sustainability and scalability of d.light’s business model.

Nick Imudia, CEO of d.light, celebrated the financing as an epic moment in the company’s mission to boost solar energy access in Nigeria. Imudia emphasized the impact of the financing, noting its potential to empower low-income families while driving sustainable business growth.

“d.light has a track record of success in using securitized finance in other Sub-Saharan African countries as a flexible, scalable financing model for raising equity for off-grid solar that is guaranteed against current and future customer sales.

We are now applying this experience in Nigeria as we scale up our operations there. In Chapel Hill Denham, we have a partner that is not only commercially astute but also equally dedicated to sustainable development,” stated Imudia.

Bolaji Balogun, CEO of Chapel Hill Denham, reiterated Imudia’s statement, highlighting the transaction’s importance in advancing sustainable infrastructure investments in Nigeria.

Balogun pointed to the unique nature of the securitized financing, stressing its role in enabling innovation and resilience within the renewable energy sector.

“The collaboration between d.light and Chapel Hill Denham underscores our shared commitment to sustainable development and community empowerment. By spearheading local currency securitization for solar home systems, we are propelling Nigeria towards a greener, more inclusive energy landscape,” commented Balogun.

Anshul Rai, Partner at Chapel Hill Denham emphasized the achievements through the NIDF’s pioneering financing model, emphasizing its potential to address Nigeria’s energy access challenges while mitigating environmental impact.

The urgency of the initiative is brought out by last year’s Energy Progress Report, which highlighted Nigeria’s unstable energy deficit, with approximately 86 million people lacking access to electricity.

The report noted the imperative of transitioning away from fossil fuel-dependent energy sources towards sustainable alternatives.

Through strategic partnerships and innovative financing mechanisms, d.light and Chapel Hill Denham will combine cutting-edge technology with financial ingenuity.

The collaboration aims to bridge the gap between energy demand and accessibility, bringing a more sustainable future for all Nigerians.

The post Nigeria Infrastructure Debt Fund (NIDF) to Strengthen Affordable Clean Energy Access with N10 Billion appeared first on Tech | Business | Economy.