THE Chief Executive Officer of Wealthgate Advisors, Mr. Adebiyi Adesuyi has described plans by telecoms service providers in the country to increase tariff on voice and data services as long overdue, but not likely to stem inflation, as being argued in some quarters.
Adesuyi stated this in reaction to claims by some economists and public analysts that if well-implemented, the planned hike would curb inflation, in tune with the federal government’s plans to reduce inflation to 15 percent in the new year.
The finance expert noted that a hike in tariff, had become imperative, since the sector remained the only one, yet to embark on such hike, despite the trying economic times induced by the federal government’s reforms, and which businesses are presently passing through.
“Honestly, I wonder how operators in the telecoms sector have been surviving. For instance, the sector has remained the only one that is yet to embark on a price review since these reforms, which have seen costs of goods and services aiming for the sky, began.
“You can imagine what they spend on diesel to power their base stations and masts across communities in the country. Businesses in other sectors have hiked their services and products costs severally, I can’t remember operators in the sector increase the costs of data and voice services. So, if they say they are planning to do this now, I think to some extent, they are justified.
“But, one thing I will however disagree with is the argument that the planned hike would curb inflation.
“For me, rather than curb it, it is going to worsen it since the prices of other goods and services will also go up, and what this means is that the purchasing power of the average Nigerian will be further negatively impacted,” he argued.
The Wealthgate Advisors therefore stressed the need for both the federal government and players in the telecoms sector to thread with caution, by ensuring the new tariffs arrived at are accessible to the average Nigerian.
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