Nigeria’s telecom tariff hike enables $150M investment, expands 4G, boosts digital access, and supports AI, IoT, and economic growth initiatives.
The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for mobile network operators, marking a pivotal moment in Nigeria’s digital transformation. This decision, the first tariff adjustment in 12 years, is set to unlock substantial investment in telecommunications infrastructure, increasing 4G coverage to 94% of the population and enabling mobile internet access for an additional 9 million people, with 2 million people in under served areas.
The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, welcomes this decision as a major step forward for consumers and the economy. By enabling mobile operators to invest in expanding and upgrading their networks, the tariff increase will bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture.
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 NGN 1.6 trillion in tax revenue.
– Angela Wamola, Head Sub-Saharan Africa, GSMA
Expected Coverage and Mobile Internet Adoption
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.
This milestone reflects the successful partnership between the Nigerian government, industry stakeholders, and the GSMA, demonstrating how collaborative policy reforms can drive economic development and digital inclusion. By advocating for policies that balance affordability with the need for sustained investment in infrastructure, the GSMA has played a critical role in ensuring the benefits of mobile connectivity are accessible to all Nigerians.
Improved network coverage will enable transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial tools. Additionally, the investment will drive the adoption of next-generation technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), which are essential for advancing innovation across sectors like precision agriculture, connected transportation, and smart healthcare. By fostering the adoption of these technologies, Nigeria is positioning itself as a leader in Africa’s digital economy.
A Call for Further Policy Reforms
While the tariff increase is a significant step forward, the GSMA calls for further policy actions to amplify its impact. These priorities, outlined in the recent GSMA report The Role of Mobile Technology in Driving the Digital Economy in Nigeria, include:
- Streamlining Right of Way (RoW) permits: Simplify and standardise the process to accelerate infrastructure deployment.
- Implementing Critical National Infrastructure (CNI) legislation: Safeguard essential telecommunications assets to ensure resilience and reliability.
- Reducing the tax burden on the mobile sector: Address high taxation to encourage further investment in infrastructure.
These recommendations are based on successes in other Sub-Saharan African markets, such as Kenya and South Africa, where similar policy reforms have proven effective in driving digital inclusion and fostering economic growth.
The GSMA remains committed to supporting the government, regulators, and industry stakeholders to implement these measures.
Source: Akim Benamara (tech africanews.com)
