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Home Business & Finance Business

GSMA urges policy reforms to maximise impact of Nigeria’s 50% telecom tariff increase

Quadri Olaitan by Quadri Olaitan
January 29, 2025
in Business
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Nigeria telecom tariff increase

GSMA urges Nigeria to implement policy reforms to maximise the impact of the 50% telecom tariff increase, unlocking $150m in network investment

 

 

[dropcap]T[/dropcap]he Global System for Mobile Communications Association (GSMA) has called on Nigerian policymakers to strengthen reforms that will amplify the benefits of the recent 50% telecom tariff increase.

Also read: Telcos record 2.4% voice subscription decline over NIN/SIM linkage

The industry group believes this adjustment, the first in 12 years, is a key step towards digital transformation but requires additional measures to unlock its full potential.

According to Angela Wamola, GSMA’s Head of Sub-Saharan Africa, the tariff increase could drive more than $150 million in additional mobile network investment.

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This would expand 4G coverage to 94% of the population, connecting 9 million new users to high-speed internet.

“This decision by the Nigerian Communications Commission (NCC) is a significant milestone in Nigeria’s digital future.

Sustainable investment in telecoms infrastructure will enhance service quality, drive economic growth, and foster innovation,” Wamola stated.

To ensure the success of this reform, GSMA is advocating for additional policies, including:

– Streamlining Right of Way (RoW) permits to accelerate infrastructure deployment.
– Implementing Critical National Infrastructure (CNI) legislation to protect essential telecom assets.
– Reducing high taxation on the mobile sector to encourage further investment.

GSMA highlighted that digitalisation across key industries like agriculture, manufacturing, transport, and trade could boost Nigeria’s GDP by two percentage points by 2028, create 2 million new jobs, and generate ₦1.6 trillion in additional tax revenue.

GSMA welcomed the Federal Government’s decision as a step forward for both consumers and the economy. By enabling mobile operators to invest in network expansion, the tariff increase is expected to bridge the digital divide and support innovations in healthcare, education, e-commerce, and financial services.

The improved network infrastructure will also drive the adoption of Artificial Intelligence (AI), the Internet of Things (IoT), and precision agriculture, positioning Nigeria as a leader in Africa’s digital economy.

Wamola noted that similar reforms in Kenya and South Africa have successfully driven digital inclusion and economic growth.

GSMA remains committed to working with the Nigerian government, regulators, and industry stakeholders to implement best practices from these markets.

Also read: Telcos seek tariff hike to offset soaring costs

“Our vision is to unlock the full power of connectivity so that people, industries, and society can thrive,” GSMA’s statement concluded.

Quadri Olaitan
Quadri Olaitan

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