FG Set to Earn N1.6trn, Create 2 Million Jobs From 50% Telecom Tariff Hike
- The federal government of Nigeria could earn as much as N1.6 trillion from the 50% telecom tariff increase
- According to GSMA, the increase will unlock massive investment and revenue potentials in the sector
- Meanwhile, the Nigerian Labour Congress has called for a nationwide protest against the tariff increase
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Nigeria’s federal government could be looking to earn up to N1.6 trillion when the 50% telecom tariff hike kicks in.
According to the GSM Association (GSMA), the telecom tariff hike will unlock massive revenue and investments in the sector.
In the short term, it could bring in up to $150 million in investments into the mobile network system, and extend 4G network coverage by 94%, with nine million new customers benefiting from the move.
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The GSMA report also projects that the hike will create up to two million new jobs, directly and indirectly. This could translate to increased tax revenue for the government, resulting in up to N1.6 trillion in annual revenue.
NCC approves telecom tariff hike
The Nigerian Communications Commission (NCC) recently approved a 50% telecom tariff hike for the operators in the space.
The telecom operators have enthusiastically received this approval, even though it was significantly lower than the 100% increase they demanded.
The GSMA in its statement, commended the approval, noting that it is the first tariff increase in the sector for 12 years, and will unlock huge investments into telecommunication infrastructure in Nigeria.
This investment will help the TelCos expand and improve their service delivery, bridging the digital divide and driving innovation across sectors, the GUARDIAN reports.
The GSMA report, ‘The Role of Mobile Technology in Driving the Digital Economy in Nigeria, ' further advocates streamlining RoW permits, implementing Critical National Infrastructure (CNI) legislation, and reducing the tax burden on the mobile sector to help Nigeria reposition itself at the forefront of Africa’s digital economy.
Speaking on the report, the GMSA Head of Sub-saharan Africa, Angela Wamola, explained that while the NCC had taken a commendable move by approving the increment, more is needed to make it a success.
She said;
“To fully unlock the potential of this reform, it is critical to implement additional measures such as simplifying right-of-way permits, implementing a critical national infrastructure plan and reducing the mobile sector’s tax burden. These steps will be essential to accelerate digital adoption across sectors.”
Telecom tariff increase will trigger GDP growth
GSMA Report projects that improved telecom infrastructure will improve digitisation of sectors like manufacturing, agriculture, trade, and transport, and increase GDP by about 2%.
Recall that Nigerian subscribers under different bodies have rejected this hike, even threatening court action.
There are ongoing negotiation talks, but should this fail, the Nigerian Labour Congress has called for a nationwide protest.
NLC to protest over Telecom tariff increase
In related news, the NLC announced its plan to protest against the approved 50% tariff hike, which they note will place more burden on Nigerians.
The union said the protest, billed for Tuesday, February 4, 2025, was to register its rejection of the high rates.
The NLC described the approval of the increase as "a clear assault on Nigerians" amid the hardship facing the citizens.
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Source: Legit.ng
