Telecom Tariff Hike To Fuel $150m Investment – GSMA

The recent 50 per cent increase in mobile tariff, the first in over a decade, has been identified by the Global System for Mobile Communications Association (GSMA) as a major driver for investment and the expansion of Nigeria’s 4G network.

According to a GSMA report seen by LEADERSHIP on Wednesday, the tariff adjustment is expected to unlock more than $150 million in fresh investment, pushing 4G coverage from 90 per cent to 94 per cent of the population and expanding mobile internet access to an estimated nine million additional Nigerians.

“The increase in tariffs is projected to generate over $150 million in new investment, allowing for the extension of 4G coverage to 94 per cent of the population. This will bring nearly nine million more people within reach of mobile internet, with close to two million expected to adopt the service, particularly in rural areas,” GSMA Intelligence stated.

GSMA emphasised that this development is a pivotal step in fortifying Nigeria’s telecom infrastructure and enhancing digital access. The organisation projects that beyond network expansion, the influx of investment will have a ripple effect on the broader economy. Enhanced mobile infrastructure and a surge in digital adoption are expected to drive Nigeria’s Gross Domestic Product (GDP) up by two percentage points by 2028, create nearly two million new jobs, and contribute an additional N1.6 trillion in tax revenue.

The expanded connectivity is also expected to spur advancements in emerging technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), with potential benefits for key sectors like agriculture, healthcare, and transportation.

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GSMA’s head of Sub-Saharan Africa, Angela Wamola, highlighted the critical role of the tariff adjustment in fostering long-term economic growth. “This decision by the NCC is a game-changer for Nigeria’s digital landscape. By encouraging sustainable investment, we are not only improving service quality for consumers but also creating opportunities for innovation and economic expansion,” she noted.

However, Wamola underscored the need for complementary policy reforms to maximise the benefits of the tariff hike. “To fully realise the potential of this policy, additional measures such as streamlining Right of Way permits, enforcing a Critical National Infrastructure plan, and alleviating the tax burden on the telecom sector must be prioritised,” she urged.

GSMA is pushing for regulatory improvements to accelerate digital penetration, citing success stories from Kenya and South Africa, where similar reforms have enhanced digital inclusion and economic growth. The organisation reaffirmed its commitment to working with the Nigerian government and industry stakeholders to ensure the country fully leverages its digital potential.