Planned Telecoms Tariff Hike Will Help Reduce Inflation, Says Rewane

The proposed tariff hike by telecoms companies has been welcomed by Financial Derivatives Bismarck Rewane’s CEO, who claims it will help to lower inflation.

Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, on Wednesday confirmed plans to increase telecoms tariffs, saying the Nigerian Communications Commission (NCC) would come up with modalities for the adjustment.

Rewane, who previously backed the plans for a tariff hike, said the move will make the sector more sustainable.

Because it boosts productivity, the telecom tariff hike will help to lower inflation.

– Bismarck Rewane, MD/CEO Financial Derivatives Company#BusinessMorning#CTVTweets pic. twitter.com/jx3lOJVrnP

“Yesterday, the price of MTN shares went up by 10% to 220. The investors have already factored that in and are expecting a lot of good goodies”, Rewane said as a&nbsp, guest on Channels Television’s&nbsp, Business Morning&nbsp, on Thursday.

“But more important to consider is the fact that they will see an increase in productivity, not directly but indirectly, as a result of an increase in tariffs and increased investment to make the industry sustainable.

Any increase in productivity and output, according to the economist, is likely to help the inflation rate to settle, which is the goal. So we were informed by policymaker Bosun Tijani, who made it abundantly clear that we wanted a sustainable industry. However, the regulator said that we would hold these guys to the highest standards of service.

” We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation, “he added.

” So in all, I don’t think it’s a bad deal, “Rewane noted but re-echoed the minister’s comment that the tariff hike will not be 100 per cent.

Source: Channels TV