How planned telecoms tariff hike will help reduce inflation — Rewane

The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has stated how the increase in telecoms tariff proposed by Nigerian Communications Commission (NCC)  would help reduce inflation.

Tribune Online reports that Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had confirmed the Nigerian Communications Commission (NCC)  plans to increase the telecom tariffs but not by 100 per cent

Rewane, during an appearance on Channels Television’s Business Morning on Thursday emphasised that the move would make the telecom sector more sustainable.

He stated, “Yesterday, the price of MTN shares rose by 10% to 220. Investors have already factored this in and are anticipating positive outcomes,”

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“More importantly, the tariff increase and additional investments will boost the sector’s sustainability. This will lead to higher productivity, which may indirectly help moderate inflation.

“The goal is to reduce inflation, and we’ve heard clear statements from policymakers like Bosun Tijani that this is about building a sustainable industry.

“Regulators have also emphasized the importance of maintaining service quality,” he added.

Rewane noted that telecom operators like MTN are preparing for the changes, and he sees economic benefits arising from increased productivity and output.

He also pointed out that policymakers 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 hike 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.

 

NIGERIAN TRIBUNE