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50% tariff hike could unlock over $150 million in mobile network investments – GSMA 

A 50% increase in mobile tariffs in Nigeria could unlock more than $150 million in additional investment and expand 4G network coverage to 94% of the population, the Global System for Mobile Communications Association (GSMA) said in a press statement on Wednesday.

The GSMA welcomed the Nigerian Communications Commission’s (NCC) decision to approve the first mobile tariff adjustment in 12 years, describing it as a step toward strengthening network infrastructure and improving digital inclusion across the country.

According to the statement, the tariff increase is expected to extend mobile internet access to an additional 9 million people, including 2 million individuals in underserved areas.

The statement read, “The tariff increase is projected to unlock over $150 million in additional investment, expanding 4G network coverage from the baseline 90% to 94% of the population. This improvement will benefit around 9 million people, with nearly 2 million expected to gain access to mobile internet services based on current adoption levels in rural areas, according to GSMA Intelligence.” 

Economic growth and job creation 

The GSMA projected that increased investment in mobile infrastructure, alongside greater digitalisation in sectors such as agriculture, manufacturing, transport, trade, and government, could boost Nigeria’s Gross Domestic Product (GDP) by two percentage points by 2028.

The organisation also estimated that improved digital access could create nearly 2 million jobs and generate an additional N1.6 trillion in tax revenue for the government.

The expanded network infrastructure is expected to support emerging technologies, including Artificial Intelligence (AI) and the Internet of Things (IoT), enabling advancements in areas such as precision agriculture, connected transport, and telemedicine.

Angela Wamola, GSMA’s Head of Sub-Saharan Africa, said the move was crucial for enhancing service quality and driving economic growth, but she emphasised the need for further policy reforms to sustain long-term benefits.

She was quoted in the statement, saying, “This decision by the NCC is an important milestone for Nigeria’s digital future. By enabling sustainable investment, we are improving the quality of service for consumers and fostering opportunities for innovation and economic growth.

“However, to fully unlock the potential of this reform, it is critical to implement additional measures such as simplifying Right of Way permits, implementing of a Critical National Infrastructure plan, and reducing the mobile sector’s tax burden. 

“These steps will be essential to accelerate digital adoption across sectors. It is estimated that increased digitalisation in agriculture, manufacturing, transport, trade and government will increase GDP by around two percentage points by 2028. This would also create nearly 2 million jobs and raise an additional N1.6 trillion in tax revenue.” 

Call for additional policy reforms 

While welcoming the NCC’s decision, the GSMA called for further policy actions to ensure the sustainability of mobile sector growth. It urged the government to:

  • Streamline Right of Way (RoW) permits to accelerate network expansion.
  • Implement Critical National Infrastructure (CNI) protections to safeguard telecom assets.
  • Reduce the tax burden on mobile operators to encourage additional investment.

The GSMA noted that similar policy reforms in Kenya and South Africa had helped drive digital inclusion and economic development in those countries.

Enhancing Nigeria’s digital economy 

  • The association emphasised that the NCC’s tariff review aligns with broader efforts to boost mobile penetration and strengthen Nigeria’s position as a digital leader in Africa.
  • It added that improved network infrastructure would support services such as e-commerce, online education, telemedicine, and mobile financial solutions, enhancing economic opportunities for millions of Nigerians.
  • GSMA reaffirmed its commitment to working with the Nigerian government, regulators, and industry stakeholders to ensure the full benefits of digital connectivity are realised.

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Collins Nnebedum

Collins Nnebedum is a seasoned writer with a knack for delivering insightful analysis on current affairs and breaking news. His dedication to factual reporting makes him a trusted voice on eNews Nigeria.