The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has expressed support for the proposed telecom tariff hike, citing its potential to enhance productivity and moderate inflation in the economy.
Speaking on Channels Television’s Business Morning on Thursday, Rewane highlighted the economic benefits of the tariff adjustment, which has been proposed by telecom operators and is currently under review by the Nigerian Communications Commission.
“Yes, it helps to reduce inflation because it increases productivity,” Rewane said, explaining the broader implications of the proposed adjustment.
Telecom operators have submitted a proposal to the NCC seeking a 100 per cent increase in tariffs to address rising operational costs, including inflation and higher service delivery expenses, The PUNCH reports.
Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had earlier confirmed the government’s intent to adjust tariffs, with the NCC set to finalise the modalities.
Rewane noted that the proposed tariff hike reflects investor confidence in the sector. “Yesterday, the price of MTN shares went up by 10 per cent to N220. Investors have already factored that in and are expecting a lot of good goodies,” he said.
He emphasised that the increase, combined with additional investments, would contribute to making the telecom industry sustainable, indirectly boosting productivity and output.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal,” Rewane added.
