The Nigerian Communications Commission (NCC) has approved a 50 percent increase in tariffs for mobile network operators. According to the GSM Association (GSMA), this policy is projected to generate approximately two million jobs and N1.6 trillion in tax revenue. It is anticipated that this policy will attract over $150 million in investments, providing a boost for a country that aims to attract more investors with necessary long-term incentives.
Angela Wamola, head of Sub-Saharan Africa at GSMA, noted that the NCC’s decision will enhance service quality for consumers and stimulate economic growth in a nation desperately in need of investment to elevate its gross domestic product (GDP).
“This decision by the NCC marks a significant milestone for Nigeria’s digital future. By facilitating sustainable investment, we are enhancing service quality for consumers and creating opportunities for innovation and economic growth,” Wamola commented in a statement on Wednesday.
While praising the federal government for its bold initiatives, she emphasized that fully realizing the potential of this reform depends on implementing “critical” additional measures, such as “simplifying Right of Way permits, establishing a Critical National Infrastructure plan, and alleviating the mobile sector’s tax burden.”
“These actions will be vital in accelerating digital adoption across various sectors. It is estimated that increased digitalization in agriculture, manufacturing, transport, trade, and government could boost GDP by approximately two
percentage points by 2028, resulting in nearly two million jobs and an additional NGN 1.6 trillion in tax revenue.”
The GSMA, a non-profit organization representing the interests of mobile network operators globally, stated that this move represents a crucial moment in Nigeria’s digital transformation, as it will enhance 4G connectivity.
The increase in coverage to 94 percent of the population will provide mobile internet access to an additional 9 million people, including 2 million in underserved areas.
“The GSMA, a global advocate for sustainable policy changes in the telecommunications sector, views this decision as a significant advancement for both consumers and the economy,” the advocacy group stated.
“By allowing mobile operators to invest in the expansion and enhancement of their networks, this tariff increase will help close the digital divide and promote innovation in essential sectors such as healthcare, education, and agriculture,” they added.
This 50 percent increase represents the first tariff adjustment in 12 years and is expected to unlock considerable investment in telecommunications infrastructure.
The rise in tariffs is anticipated to generate over $150 million in additional investment, boosting 4G network coverage from the current 90 percent to 94 percent of the population.
This enhancement will benefit roughly 9 million people, with nearly 2 million expected to gain access to mobile internet services based on current adoption rates in rural areas, according to GSMA Intelligence.
Better network coverage will facilitate transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial solutions.
“Furthermore, this investment will promote the adoption of next-generation technologies like Artificial Intelligence (AI) and the Internet of Things (IoT), which are crucial for driving innovation in areas such as precision agriculture, connected transportation, and smart healthcare.
“By encouraging the uptake of these technologies, Nigeria is positioning itself as a leader in Africa’s digital economy,” GSMA concluded.
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