The approved 50 percent increment in tariff for mobile network operators by the Nigerian Communications Commission (NCC) is expected to create an estimated two million jobs and N1.6 trillion in tax revenue, according to the GSM association (GSMA).
This is as the policy is said to rake in more than $150 million investment, a boost for a country that’s seeking to lure more investors with needed incentives to stay for long-term.
According to Angela Wamola, head Sub-Saharan Africa at GSMA, the move by the NCC will improve the quality of service for consumers and spur economic growth in a country direly in need of investment to boost its gross domestic product (GDP).
“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,” Wamola said in a statement on Wednesday.
Read also: NCC to announce new tariff plan Dec 13
While commending the federal government for the bold initiatives, she made known that unlocking the full potential of this reform lies in implementing “critical” 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. 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.”
The non-profit industry organisation that represents the interests of mobile network operators worldwide said the move serves as a pivotal moment in Nigeria’s digital transformation as it would increase 4G coverage to 94 percent of the population, enabling mobile internet access for an additional 9 million people, with 2 million people in underserved areas.
“The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, welcomes this decision as a major step forward for consumers and the economy,” the advocacy group said.
“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,” it added.
The 50 percent increase marks the first tariff adjustment in 12 years which is expected to unlock substantial investment in telecommunications infrastructure.
Read also: Telcos tariff hike to close N551bn infrastructure funding gap
The tariff increase is projected to unlock over $150 million in additional investment, expanding 4G network coverage from the baseline 90 percent to 94 percent of the population.
This improvement 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, according to GSMA Intelligence.
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,” GSMA said.
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