Rewane: Telecom tariff increase will lower inflation.

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Bismarck Rewane, CEO of Financial Derivatives, has voiced his support for the proposed telecom tariff hike in Nigeria. He believes this increase will have a positive impact on the economy, specifically by enhancing productivity and helping to moderate inflation.

Rewane explained that by increasing productivity, the tariff hike can actually help reduce inflation. This statement was made during his appearance on Thursday morning, where he highlighted the economic benefits of the proposed tariff adjustment.

It’s worth noting that the proposed tariff hike has been suggested by telecom operators and is currently under review by the Nigerian Communications Commission.

Rewane explained that the proposed tariff hike could have an indirect effect on inflation, stating that “increased productivity, facilitated by the adjustment, can help curb inflation.”

Nigeria’s telecom operators have submitted a proposal to the Nigerian Communications Commission (NCC) to increase tariffs by 100%. The proposed hike aims to address the rising operational costs, including inflation and higher expenses for service delivery.

Minister of Communications, Innovation, and Digital Economy Bosun Tijani previously confirmed the government’s intention to adjust tariffs, with the NCC set to finalize the details.

According to Bismarck Rewane, the proposed tariff increase reflects investor confidence in the sector. “Yesterday, MTN shares rose by 10% to N220. Investors have already factored in the increase and are expecting positive outcomes,” he stated.

Rewane emphasized that the tariff increase, combined with additional investments, would contribute to making the telecom industry sustainable. This, in turn, would indirectly boost productivity and output.

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