The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, has supported the proposed telecom tariff hikeRewane said the move will boost productivity and slow inflation in the economy Rewane disclosed that investors are already reacting positively to the proposed hike as MTN shares rose 10%
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, has backed the impending telecommunication tariff hike because it can boost productivity and slow inflation.
Rewane disclosed this on Channels Television on Thursday, January 9, 2025, highlighting the economic benefits of the adjustment, which the telecom operators proposed.
The Chief Executive of Officer of Financial Derivative Company, Bismarck Rewane, supports telecom tariff hike
Credit: FDC
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FG rules out 100% tariff hike
According to the economist, the hike will reduce inflation because it increases productivity.
Henzodaily.ng reported that operators submitted a proposal to the Nigerian Communications Commission (NCC) seeking a 100% tariff hike to address the sector’s multidimensional challenges, including inflation and high service delivery costs.
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FG agrees to tariff hike for MTN, Airtel, other telcos as minister hints at new rate
The Minister of Communication, Innovation, and Digital Economy, Bosun Tijani, confirmed the impending hike but said it would not be 100%, as the telcos proposed.
MTN shares rise over news of impending hike
However, Rewane disclosed that the hike shows investors confidence in the sector, stating that MTN shares skyrocketed by 10% to N220.
He said the hike, alongside additional investments, would boost the sector and enhance productivity.
He acknowledged the synergy between policymakers, regulators, and operators regarding the need for sustainability in the industry.
He dismissed the possibility of a 100% hike, forecasting a moderate adjustment between 40 and 50%.
FG engages subscribers
The NCC, however, has scheduled a meeting with telecom subscribers to debate the proposed hike.
The discussion seeks to address subscribers’ concerns while balancing operators’ needs.
A Punch report said a final decision on the adjustment will be announced after consultations.
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NCC, MTN, other telcos reportedly agree on 100% tariff hike, to invest proceeds on infrastructure
Telcos to invest proceeds in infrastructure development
Henzodaily.ng earlier reported that NCC and telcos have agreed to invest the revenue from the proposed hike into infrastructure development upgrades.
Those were the main conditions for the operators who wanted the hike after negotiations with NCC.
As part of the deal, NCC will supervise the implementation of these investments to ensure telcos comply with the requirements.
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Source: Henzodaily.ng