THE Federal Government has faulted the proposed tariff hike by telecommunications companies, stressing that increasing data, voice and text message prices is not the “sole or optimal solution” to the sector’s challenges.

The government, instead, urged the companies to explore innovative solutions to counter inflationary pressures and high operating costs.

The Minister of Communications Innovations and Digital Economy, Dr. Bosun Tijani, gave the charge at the launch of the Nigeria Digital Economy Report in Abuja by the GSM Association, an international organisation that represents the interests of mobile network operators worldwide, analyses the Nigerian economy and the government’s digital transformation strategy.

Recall that telecommunication companies in the country have proposed increase in tariff for calls, data and other services after several failed attempts in the last 11 years.

The Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) have argued that the current prices were not enough to maintain their business operations, saying their general service pricing framework had not been reviewed upward in the last 11 years because of regulatory constraints.

ATCOM Chairman, Mr. Gbenga Adebayo, said investments in the sector had begun to dwindle due to varying challenges of currency devaluation, high cost of business, fossil fuel and multiple taxation, among others, insisting that an increase in tariff was inevitable, considering the realities on ground and that only a continuous flow of investments could sustain its viability.

But the minister told mobile network operators that increasing telecom tariffs was not a viable option and should not be the singular solution to the challenges confronting the telecom industry, saying government was aware of their challenges and committed to addressing them incrementally.

He appealled to the operators to consider the suffering masses affected by the economic downturn, noting: “We have to deepen and address so many of these things. The solutions to these things will not come from one single thing, which is raising the tariff, that’s never going to be the solution.

“There are tons of other things that can be done to ensure that the business environment is conducive for the investors in this phase, and government is articulating that, including the tariff conversation.

“Government may intentionally put out the right messages, the right policies and the right intentions, but if everything that is coming from the association on just one issue is extremely negative, investors will not come in.

“Investors will not help. And if we go back to my very clear point, I’ve not seen anything more in what you are demanding that is difficult.

    “It’s the approach to addressing them that I think we are not ready to do. And I’m being open about this because we must, for once, and finally, agree to address these issues positively, because they are not just affecting the companies that you represent; they are affecting the economy and the security of the nation as well.

“So we have to be extremely careful how we approach it and make sure we focus on solving it. Some of the things proposed nine months ago, if we collectively came together to address those things nine months ago, your demands would have been met. But the solution that the association is saying is only one solution. And I don’t believe anyone wants that.”

The minister expressed government commitment to improving infrastructure in the telecom industry, as well as address multiple taxation, Right of Way (RoW), security of infrastructure, improved quality of services, and close access gaps through increased broadband penetration.