CNG Kicks Against Tax Reform Bills, Proposed Telecom Tariff Hike

The Coalition of Northern Groups (CNG) is speaking out against the proposed tax reform bills and telecom tariff hike, and it's easy to see why. With Nigerian telecommunications companies proposing a 100% increase in tariffs, pending approval from the government, it's clear that the cost of living is about to go up for many people. The proposed tariff hike is intended to address rising operational costs, including inflation and increased service delivery expenses, but it's hard to see how this won't have a negative impact on consumers.

The CEO of MTN Nigeria, Karl Toriola, has expressed that the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs. However, it's uncertain whether the Nigerian Communications Commission will approve the proposal. The CNG is likely concerned that this hike will disproportionately affect certain groups, such as low-income households and small businesses, who may struggle to absorb the increased costs.

It's worth noting that the telecom sector is already under siege, with soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices. Despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo, has warned that without an immediate tariff adjustment, operators may resort to service shedding, leading to limited availability of telecom services in certain areas

The CNG's opposition to the tax reform bills and proposed telecom tariff hike is likely driven by concerns about the impact on the economy and the well-being of citizens. With the cost of living already high in Nigeria, any increase in taxes or tariffs is likely to be felt deeply by many people. It will be interesting to see how this situation develops and whether the government will take the CNG's concerns into account.

https://www.channelstv.com/2025/01/10/cng-kicks-against-tax-reform-bills-proposed-telecom-tariff-hike/