Firstly, the Federal Executive Council (FEC) has approved the construction of 7,000 new telecom towers in rural areas. This move aims to significantly improve telecommunication coverage nationwide. Bosun Tijjani, the Minister of Communications and Digital Economy, disclosed this following a meeting with Airtel’s leadership at the Presidential Villa in Abuja.
Defending Tariff Adjustments: Ensuring Industry Sustainability
Secondly, the recent telecom tariff increase has been a topic of discussion. Consequently, Minister Tijjani defended this decision, emphasizing the need for continuous investment to provide quality connectivity. “We must encourage private sector investment,” he stated. Moreover, the tariff adjustment was crucial to prevent widespread job losses and potential company closures. Without it, telecom operators faced serious financial strain, potentially leading to shutdowns and thousands of job cuts.
Airtel’s Leadership and Government Assurance
In addition, Sunil Bharti Mittal, Airtel’s founder and chairman, led the delegation that met with President Tinubu. Subsequently, Minister Tijjani reassured the public that the government is committed to protecting both consumers and businesses. “This government is acutely aware of the economic situation,” he emphasized. “The President carefully considers every decision.”
Strategic Planning: The KPMG Study
Furthermore, to determine the optimal tariff increase, the government commissioned a study by KPMG. This study aimed to identify an adjustment that would ensure sustainability without overburdening consumers. After all, the telecommunications sector employs nearly half a million Nigerians. “We risked losing jobs if we denied the tariff increase,” Tijjani noted.
Beyond Affordability: Focusing on Service Quality
Moreover, the government’s focus extends beyond affordability. Indeed, they aim to ensure high-quality service. “We want Nigerians to have meaningful access,” Tijjani stated. “That means improving service quality.” To this end, the Nigerian Communications Commission (NCC) is now shifting its focus from quality of service to quality of experience.
Expanding Connectivity: Government Investments
Additionally, the government is actively investing in expanding connectivity. This includes deploying 90,000 kilometers of fiber-optic cables and constructing the 7,000 telecom towers in rural areas. “This is a continuous journey,” Tijjani said. “We need both the private sector and the government to collaborate effectively.”
Airtel’s Commitment: Investments and Economic Challenges
Meanwhile, Mittal explained that the meeting with President Tinubu was to discuss Airtel’s ongoing investments and the recent tariff hike. He attributed the hike to rising operational costs, inflation, and currency devaluation. “The situation has been generally tough,” Mittal said. “Inflation has impacted everything significantly.”
Continued Investment: Airtel’s Long-Term Vision
Nevertheless, Airtel remains committed to Nigeria. “We’ve been here for 15 years and haven’t slowed down on investments,” Mittal emphasized. Last year, they invested $200 million, and they plan to invest another $200 million by the end of the financial year. Furthermore, additional investments will include $250 million for the radio network, $140 million for a new data center, and substantial funds for spectrum expansion.
Navigating Future Adjustments: Collaboration and Economic Improvement
While the 50% tariff increase was necessary, Mittal acknowledged that further adjustments might be required in the future. “We’ll work closely with the government,” he said. “As the Nigerian economy improves, we hope to gradually manage inflationary impacts.”
Nigeria’s Strategic Importance: Airtel’s African Strategy
Ultimately, Mittal stressed that Nigeria is crucial to Airtel’s success in Africa. “Nigeria is the most important part of our Africa strategy,” he said. “The entire Africa operation rests on Nigeria.” He personally oversees Airtel’s operations in Nigeria and aims to bring it on par with India in terms of digital innovation, connectivity, and financial inclusion.
Supporting Education: Scholarships and Skills Development
Finally, Mittal praised President Tinubu’s economic reforms and discussed Airtel’s commitment to the 3 Million Technical Talent program. “We want to contribute to skilling and education,” he said. “Just like in India, we believe we can make a meaningful impact.” He announced that Airtel will award scholarships to 10 Nigerian students for full engineering degrees in India, with the Nigerian government selecting the recipients. He also highlighted Airtel’s 15-year-old Satya Bharti School Programme in India, which supports 100,000 children. “We’re extending our scholarship program to Nigerian students,” he added. “We want to support Nigeria in a very meaningful way.”
