Thursday, January 30, 2025

Nigeria’s 50% Tariff Hike Could Unlock $150m, Expand 4G to Millions – GSMA

A 50% increase in mobile tariffs could inject over $150 million into Nigeria’s telecom sector, expanding 4G coverage to 94% of the population, according to the Global System for Mobile Communications Association (GSMA).

The GSMA welcomed the Nigerian Communications Commission’s (NCC) approval of the first tariff adjustment in 12 years, calling it a vital step toward improving network infrastructure and digital access. The move is expected to provide mobile internet to an additional 9 million Nigerians, including 2 million in underserved rural areas.

Boosting Economic Growth and Job Creation

Beyond improving connectivity, the GSMA estimates that increased investment in mobile infrastructure could boost Nigeria’s Gross Domestic Product (GDP) by two percentage points by 2028. The expansion is also projected to create nearly 2 million jobs and generate an additional ₦1.6 trillion in tax revenue.

Angela Wamola, GSMA’s Head of Sub-Saharan Africa, praised the decision but urged further reforms. “This is an important milestone for Nigeria’s digital future,” she said. “Sustainable investment will enhance service quality, unlock innovation, and drive economic growth.”

She added that simplifying Right of Way permits, securing telecom infrastructure, and reducing the tax burden on operators would accelerate digital adoption and maximise the benefits of the tariff adjustment.

Nigeria’s Digital Future at Stake

The GSMA highlighted that stronger mobile networks would support emerging technologies like Artificial Intelligence (AI) and the Internet of Things (IoT), enabling advancements in agriculture, transport, and healthcare.

It also pointed to similar policy reforms in Kenya and South Africa, where digital inclusion has spurred economic development.

With mobile services playing a critical role in Nigeria’s economy, the GSMA reaffirmed its commitment to working with regulators and industry stakeholders to ensure the benefits of digital connectivity reach all Nigerians.

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