The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for mobile network operators, marking a pivotal shift in Nigeria’s digital transformation. This adjustment, the first in 12 years, is expected to stimulate significant investment in telecommunications infrastructure, expanding 4G network coverage from 90% to 94% of the population and enabling mobile internet access for an additional 9 million people, including 2 million in underserved areas.
The GSMA, a global body advocating for sustainable policies in the telecommunications sector, has welcomed this move as a vital step in closing the digital divide and enhancing network quality and accessibility. By enabling mobile operators to invest in network expansion and upgrades, this decision will drive innovation across critical sectors, including:
- Healthcare – Enhancing telemedicine and digital health services.
- Education – Expanding access to online learning and digital classrooms.
- Agriculture – Supporting precision farming and smart irrigation through IoT.
- Commerce & Finance – Enabling greater mobile banking and e-commerce participation.
According to Angela Wamola, Head of Sub-Saharan Africa at GSMA, this move represents a significant milestone for Nigeria’s digital future:
“By enabling sustainable investment, we are improving service quality for consumers while fostering innovation and economic growth. However, to maximize the impact of this reform, additional measures such as simplifying Right of Way (RoW) permits, implementing a Critical National Infrastructure (CNI) plan, and reducing the tax burden on the mobile sector must be prioritized.”
Economic Impact of the Tariff Adjustment
Beyond improving digital connectivity, the tariff revision is projected to unlock over $150 million in additional investment into Nigeria’s telecom sector. This investment will play a critical role in:
- Job Creation – Nearly 2 million new jobs are expected to emerge across the digital and tech ecosystem.
- GDP Growth – Increased digital adoption in agriculture, manufacturing, trade, and government services is forecasted to boost GDP by two percentage points by 2028.
- Government Revenue – The expanded digital economy is projected to generate an additional NGN 1.6 trillion in tax revenue.
These economic gains highlight how well-structured policy reforms can catalyze sustainable growth, ensuring that investments in infrastructure translate into broad socio-economic benefits.
Expanding Access to Mobile Internet and Emerging Technologies
With Nigeria’s mobile penetration rate steadily increasing, the tariff adjustment will accelerate mobile internet adoption, particularly in rural areas, where connectivity remains a challenge. According to GSMA Intelligence, the expected network expansion will connect 9 million more Nigerians to mobile internet services, driving greater participation in the digital economy.
Read also: NCC Approves Limited Tariff Adjustments to Ensure Telecom Sector Sustainability
Moreover, enhanced telecom infrastructure will pave the way for next-generation technologies such as:
- Artificial Intelligence (AI) – Driving automation, personalized services, and improved decision-making.
- Internet of Things (IoT) – Enabling smart transportation, smart agriculture, and connected healthcare solutions.
- 5G Readiness – Laying the foundation for higher-speed, low-latency networks, essential for future applications like autonomous systems and industrial automation.
Furthermore, by investing in these technologies, Nigeria is positioning itself as a leader in Africa’s digital revolution, ensuring that businesses and individuals can fully participate in the global digital economy.
A Call for Additional Policy Reforms
While the 50% tariff increase is a significant milestone, the GSMA emphasizes that further regulatory improvements are needed to maximize its impact. Key policy recommendations include:
- Streamlining Right of Way (RoW) Permits – A simplified and standardized process for infrastructure deployment will reduce delays and costs for mobile operators.
- Implementing Critical National Infrastructure (CNI) Legislation – Protecting telecom assets from vandalism and disruptions will ensure network resilience and service reliability.
- Reducing the Tax Burden on the Mobile Sector – Addressing high sector-specific taxes will encourage greater investment in network expansion.
Moreover, these reforms align with successful models in Kenya and South Africa, where policy enhancements have accelerated digital inclusion and driven significant economic growth.
As a key advocate for telecom policy reforms, the GSMA remains committed to collaborating with the Nigerian government, regulators, and industry stakeholders to ensure that these measures are effectively implemented.
Finally, by balancing affordability with the need for sustained infrastructure investment, Nigeria can unlock the full potential of its digital economy, driving inclusive growth and transforming lives through connectivity.
