What Telecoms Sector Tariff Hike Has Resulted In -NCC Chair

Do you know what the recent tariff hike in the Nigerian telecoms sector has resulted in for the country?

Well, it is said that for every action, there is a result; so has been the case with the above policy of the Federal Government.

The impact of that tariff hike has just been shared by the Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the Nigerian Communications Commission (NCC), Dr Aminu Maida.

He said it has resulted in investment inflow valued at $1 billion, and that the revenue would now go into boosting broadband coverage and capacity in the country’s telecoms sector.

Maida spoke around the theme “Right of Way and Protection of Broadband Infrastructure: The Road to Success in Broadband Investment and Connectivity,” during the opening of the Business Roundtable on Investments in Broadband Connectivity and Safeguarding Critical National Information Infrastructure.

“In line with our economic regulatory mandate, earlier this year, the Commission approved the application of tariff rates that are both cost-reflective and competitive within the telecommunications industry.

“I can confirm that operators have made a collective commitment to investing over $1 billion in additional rollout investments to expand broadband coverage and capacity nationwide,” the CEO said, inferring that telecoms sector investors’ confidence had been strengthened thereby

The Minister of Finance Wale Edun who also spoke at the event, informed that problems associated with connectivity and broadband infrastructure development in the telecoms sector had been identified.

Identifying such problems to include multiple taxation and weak infrastructure said the federal government, had also taken steps to address them.

READ ALSO: FG Approves Telecoms Companies New Tariff Hike, But..

READ ALSO: Why Big Tech Companies Blocked 13.5m Nigerian Accounts

“Of course, problems have been identified regarding connectivity and broadband infrastructure development in Nigeria.

“These problems are quite numerous, but they are not something that we cannot solve; we have the problem of a weak framework, and we have too much taxation.

“So there is a need for stakeholders to come together and deal with this particular problem.”

Represented by the Director, Home, Ministry of Finance, Dr Ali Mohammed, he added: “This sector is virtually vulnerable, it is compact, and therefore we are calling for our local and international investors to come forward so that we can invest in this particular sector.

“The government alone cannot do it. We need the cooperation and collaboration of the private sector.