GSMA says NCC’s tariff increase approval will unlock $150m investment, benefit consumers

The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, has stated that a 50 per cent tariff increase for mobile network operators could unlock over $150 million in additional investment and expand 4G coverage to 94 per cent of the population, reaching nine million new consumers.

The Nigerian Communications Commission (NCC) recently approved the tariff adjustment, marking a significant milestone in Nigeria’s digital transformation.

According to the GSMA, this decision, Nigeria’s first tariff adjustment in 12 years, will stimulate substantial investment in telecommunications infrastructure, increasing mobile internet access for an additional nine million people, including two million in underserved areas.

The Head of Sub-Saharan Africa at GSMA, Angela Wamola, described the tariff increase as a major step forward for both consumers and the Nigerian economy.

“By enabling mobile operators to invest in expanding and upgrading their networks, this tariff adjustment will bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture,” she said.

She emphasised that for Nigeria to fully realise the benefits of this reform, additional measures must be implemented, including simplifying Right of Way (RoW) permits, enforcing a Critical National Infrastructure (CNI) plan, and reducing the mobile sector’s tax burden.

Wamola explained that these steps are essential to accelerating digital adoption across all sectors.

She said it is estimated that increased digitalisation in agriculture, manufacturing, transport, trade, and government will boost Nigeria’s GDP by approximately two percentage points by 2028.

She said this would also create nearly two million jobs and generate an additional N1.6 trillion in tax revenue.

Citing GSMA Intelligence data, Wamola noted that the tariff increase is projected to drive more than $150 million in additional investment, expanding 4G network coverage from 90 per cent to 94 per cent of the population.

This expansion is expected to benefit approximately nine million people, with nearly two million gaining access to mobile internet services, particularly in rural areas.

Wamola stated that this milestone reflects the successful partnership between the Nigerian government, industry stakeholders, and the GSMA as well as demonstrates how collaborative policy reforms can drive economic development and digital inclusion.

She further highlighted that improved network coverage would enable transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial tools.

Wamola said the increased investment will also accelerate the adoption of next-generation technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), driving innovation in precision agriculture, connected transportation, and smart healthcare.

While the tariff increase is a crucial step forward, the GSMA has called for additional policy actions to maximize its impact.

According to Wamola, the priorities outlined in the GSMA report, The Role of Mobile Technology in Driving the Digital Economy in Nigeria, include: Streamlining Right of Way (RoW) permits, Simplifying and standardising the process to accelerate infrastructure deployment.

Other ear Implementing Critical National Infrastructure (CNI) legislation, Protecting essential telecommunications assets to ensure network resilience and reliability, Reducing the tax burden on the mobile sector and Addressing high taxation to encourage further investment in infrastructure.

She pointed to successful examples in other Sub-Saharan African markets, such as Kenya and South Africa, where similar reforms have significantly boosted digital inclusion and economic growth.

Wamola reaffirmed the GSMA’s commitment to working with the Nigerian government, regulators, and industry stakeholders to implement these measures and ensure a thriving digital economy.