By Damilola Adeleke

Bismarck Rewane, CEO of Financial Derivatives, has expressed support for the proposed increase in telecommunications tariffs, suggesting it could lead to reduced inflation and improved productivity.

The Nigerian Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, recently confirmed plans for tariff adjustments, with specifics to be determined by the Nigerian Communications Commission (NCC).

Speaking on Channels Television’s Business Morning, Rewane emphasized the economic benefits of the adjustment, citing increased sustainability in the telecommunications sector.

“This helps reduce inflation because it boosts productivity,” he explained, noting the 10% rise in MTN shares as a reflection of investor confidence.

He added, “With increased tariffs and investments, the sector will see a boost in output and productivity, which will moderate inflation—one of the key goals.”

Rewane also assured that the hike would not be excessive, predicting an increase of 40-50% rather than the initially speculated 100%. This adjustment, he noted, would be fair considering years of static rates.

The collaboration between policymakers, regulators, and operators was highlighted as essential for achieving sustainable growth and maintaining quality service delivery.