By Martin Ekpeke
A recent 50% tariff increase for mobile network operators in Nigeria, approved by the Nigerian Communications Commission (NCC), is projected to attract significant investment and stimulate economic growth, GSM Association (GSMA) has said.
According to GSMA, which represents the interests of mobile network operators worldwide, the NCC’s move will generate an estimated two million jobs and N1.6 trillion in tax revenue, alongside attracting over $150 million in investment.
In a statement, Angela Wamola, head of Sub-Saharan Africa at GSMA, emphasized the importance of the NCC’s decision for Nigeria’s digital future, stating that the tariff adjustment will improve service quality for consumers and foster innovation, which she believes is crucial for boosting the country’s GDP.
Wamola commended the government’s initiative but also stressed the need for additional measures, including streamlined Right of Way permits, a Critical National Infrastructure plan, and a reduced tax burden for the mobile sector, to fully realize the reform’s potential and accelerate digital adoption.
The GSMA highlights the transformative impact of increased digitalization across various sectors, estimating a potential two percentage point GDP increase by 2028, along with the creation of nearly two million jobs and N1.6 trillion in additional tax revenue.
“The tariff increase, the first in 12 years, is expected to significantly expand 4G coverage, reaching 94% of the population and providing mobile internet access to an additional nine million people, including two million in underserved areas,” part of the statement reads.
GSMA believes that the expanded coverage will facilitate access to crucial digital services like online education, telemedicine, e-commerce, and mobile financial tools. Furthermore, the investment will pave the way for the adoption of next-generation technologies like Artificial Intelligence (AI) and the Internet of Things (IoT), driving innovation in sectors such as agriculture, transportation, and healthcare. The GSMA believes this move positions Nigeria as a leader in Africa’s burgeoning digital economy. The organization, a global advocate for sustainable telecom policy reforms, hailed the decision as a major step forward for both consumers and the Nigerian economy.