Joy Agwunobi
The GSMA, a global body representing the mobile ecosystem, has projected that Nigeria’s recent 50 percent increase in mobile tariffs could unlock over $150 million in fresh investments and extend 4G network coverage to 94 percent of the population.
In a statement, the GSMA welcomed the Nigerian Communications Commission’s (NCC) approval of the first mobile tariff adjustment in 12 years, describing it as a critical step towards strengthening network infrastructure and advancing digital inclusion across the country.
The organisation, however, urged policymakers to implement additional reforms to maximise the impact of the tariff hike.
According to the GSMA, the tariff increase is expected to provide mobile internet access to an additional nine million people, including two million individuals in underserved areas.
“The tariff increase is projected to unlock over $150 million in additional investment, expanding 4G network coverage from the current 90 per cent to 94 per cent of the population. This will improve access for approximately nine million people, with nearly two million in rural areas gaining mobile internet connectivity based on current adoption rates,” the statement read.
The GSMA further projected that increased investment in mobile infrastructure, coupled with greater digitalisation in key sectors such as agriculture, manufacturing, transport, trade, and governance, could boost Nigeria’s Gross Domestic Product (GDP) by two percentage points by 2028. Additionally, the expansion of digital services is expected to generate nearly two million jobs and contribute an extra N1.6 trillion in tax revenue.
The improved network infrastructure is also set to support emerging technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), facilitating advancements in areas like precision agriculture, smart transportation, and telemedicine.
Angela Wamola, GSMA’s head of Sub-Saharan Africa, described the tariff adjustment as a pivotal moment for Nigeria’s digital development. She emphasised that while the move would enhance service quality and economic growth, sustained policy reforms were necessary to fully realise its benefits.
“This decision by the NCC marks an important milestone in Nigeria’s digital transformation. By enabling sustainable investment, we are improving service quality for consumers and fostering innovation and economic expansion,” Wamola stated.
She stressed that to fully capitalise on this reform, policymakers must implement further measures, including simplifying the Right of Way permit process, introducing a Critical National Infrastructure framework to safeguard telecommunications assets, and reducing the tax burden on the mobile sector.
“These steps are essential to accelerating digital adoption across multiple industries. Increased digitalisation in agriculture, manufacturing, transport, trade, and governance is expected to raise GDP by about two percentage points by 2028, while also creating nearly two million jobs and generating N1.6 trillion in additional tax revenue,” Wamola added.
The GSMA also highlighted the broader implications of improved network coverage, stating that enhanced connectivity would drive innovation across key sectors, including healthcare, education, and financial services. The expansion of mobile services is expected to enable wider access to digital tools such as online education, telemedicine, mobile banking, and e-commerce.
The GSMA also drew comparisons with Kenya and South Africa, where similar regulatory reforms have successfully driven digital inclusion and economic growth. The organisation reaffirmed its commitment to supporting the Nigerian government and industry stakeholders in implementing the necessary policies to ensure sustainable progress.
“Our commitment remains steadfast in supporting the government, regulators, and industry stakeholders to implement measures that will drive digital adoption and economic growth,” the statement added.
