Telecom Tariff Adjustment To Fuel $150m Investment, 4G Expansion — GSMA

The recent 50% increase in mobile tariffs in Nigeria is expected to drive over $150 million in fresh investment and significantly expand the country’s 4G network coverage, according to the Global System for Mobile Communications Association (GSMA).

A GSMA report shared with LEADERSHIP on Wednesday outlined that the tariff adjustment will extend 4G coverage from 90% to 94% of Nigeria’s population, providing mobile internet access to an additional 9 million Nigerians. As a result, nearly two million new users, especially in rural areas, are anticipated to adopt mobile internet services.

GSMA Intelligence highlighted the importance of this tariff adjustment in improving Nigeria’s telecom infrastructure and increasing digital access, emphasizing its positive economic impact. Beyond network expansion, the investment influx is projected to boost Nigeria’s GDP by 2 percentage points by 2028. It is also expected to create nearly two million new jobs and contribute an additional N1.6 trillion in tax revenue.

The expansion of connectivity is seen as a catalyst for advancing technologies like Artificial Intelligence (AI) and the Internet of Things (IoT), with potential benefits across sectors such as agriculture, healthcare, and transportation.

Angela Wamola, GSMA’s head of Sub-Saharan Africa, described the tariff adjustment as a “game-changer” for Nigeria’s digital landscape. She emphasized that it would not only improve service quality for consumers but also create opportunities for innovation and economic expansion.

However, Wamola urged the Nigerian government to implement complementary policy reforms to fully maximize the benefits of the tariff hike. She specifically called for the streamlining of Right of Way permits, the enforcement of a Critical National Infrastructure plan, and addressing the tax burden on the telecom sector.

GSMA has cited the success of similar regulatory reforms in countries like Kenya and South Africa, which have led to increased digital inclusion and economic growth. The organization reiterated its commitment to collaborating with the Nigerian government and industry stakeholders to fully realize the country’s digital potential.