GSMA: NCC’s Decision to Hike Telecom Tariffs by 50% To Drive Investment in Nigeria’s Digital Future
- The decision by the NCC to increase telecom tariff by 50%, the first in 12 years, has been backed by GSMA
- The global organisation said the 50% tariff hike would unlock $150 million for 4G expansion, benefiting 9 million Nigerians
- GSMA added that the move would improve digital access, especially in rural areas, and boost Nigeria's GDP by 2%
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The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, has welcomed the decision by the Nigerian Communications Commission (NCC) to approve a 50% tariff increase for mobile network operators for the first time in 12 years.
Global System for Mobile Communications Association said the tariff hike would mark a pivotal moment in Nigeria’s digital transformation.
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According to GSMA, NCC's tariff decision is set to unlock substantial investment in telecommunications infrastructure, increasing 4G coverage to 94% of the population and enabling mobile internet access for an additional 9 million people, with 2 million people in underserved areas.
Part of the statement reads:
"By enabling mobile operators to invest in expanding and upgrading their networks, the tariff increase will bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture. "
Angela Wamola, head of sub-Saharan Africa at GSMA, commented on the NCC tariff adjustment:
“This decision by the NCC is an important milestone for Nigeria’s digital future.
"By enabling sustainable investment, we are improving the quality of service for consumers and fostering opportunities for innovation and economic growth.
"However, to fully unlock the potential of this reform, it is critical to implement additional measures such as simplifying Right of Way permits, implementing of a Critical National Infrastructure plan, and reducing the mobile sector’s tax burden.
"These steps will be essential to accelerate digital adoption across sectors. It is estimated that increased digitalisation in agriculture, manufacturing, transport, trade and government will increase GDP by around two percentage points by 2028.
"This would also create nearly 2 million jobs and raise an additional NGN 1.6 trillion in tax revenue.”
Expected coverage and mobile internet adoption
GSMA Intelligence also stated that the tariff increase is expected to generate over $150 million in additional investment, expanding 4G network coverage from the current 90% to 94% of the population.
It added that the improvement in telcom service will benefit around 9 million people, with nearly 2 million expected to gain access to mobile internet services based on current adoption levels in rural areas.
GSMA said:
"This milestone reflects the successful partnership between the Nigerian government, industry stakeholders, and the GSMA, demonstrating how collaborative policy reforms can drive economic development and digital inclusion.
"By advocating for policies that balance affordability with the need for sustained investment in infrastructure, the GSMA has played a critical role in ensuring the benefits of mobile connectivity are accessible to all Nigerians.
"Improved network coverage will enable transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial tools. Additionally, the investment will drive the adoption of next-generation technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), which are essential for advancing innovation across sectors like precision agriculture, connected transportation, and smart healthcare. By fostering the adoption of these technologies, Nigeria is positioning itself as a leader in Africa’s digital economy."
A call for further policy reforms
While the tariff increase is a significant step forward, the GSMA calls for further policy actions to amplify its impact.
These priorities, outlined in the recent GSMA report the Role of Mobile Technology in Driving the Digital Economy in Nigeria, include:
- Streamlining Right of Way (RoW) permits: Simplify and standardise the process to accelerate infrastructure deployment.
- Implementing Critical National Infrastructure (CNI) legislation: Safeguard essential telecommunications assets to ensure resilience and reliability.
- Reducing the tax burden on the mobile sector: Address high taxation to encourage further investment in infrastructure.
GSMA said these recommendations are based on successes in other Sub-Saharan African markets, such as Kenya and South Africa, where similar policy reforms have proven effective in driving digital inclusion and fostering economic growth.
The GSMA said it remains committed to supporting the government, regulators, and industry stakeholders to implement these measures.
9mobile CEO reacts to FG’s 50% telecom tariff increase
Legit.ng earlier reported that Obafemi Banigbe, the chief executive officer of 9mobile, commended the decision of the Nigerian Communications Commission to approve a 50% tariff adjustment.
Banigbe noted the tariff adjustments would address financial constraints and improve service quality.
He also said that the tariff increase would help combat rising operational costs and ensure telecom industry sustainability.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
