Telecoms 50% tariff hike can unlock $150m investment – GSMA

A non-profit industry organisation representing the interests of mobile network operators worldwide,
GSMA has called on managers of the Nigerian economy to strengthen policy reforms to amplify the impact of the 50 per cent tariff increase on the telecommunication sector.

In a statement on Wednesday to unveil the GSMA report tagged, “The role of mobile technology in driving the digital economy in Nigeria, the Head of Sub-Saharan Africa, GSMA, Angela Wamola, said while the tariff increase is a significant step forward, the global association for telecommunication operators is calling for further policy actions to amplify its impact.

According to Wamola, a 50 per cent tariff increase could unlock more than $150m in additional mobile network investment and expand 4G coverage to 94 per cent, covering 9 million new consumer.

Wamola further stated that the decision by the Nigerian Communications Commission to approve a 50 per cent tariff increase for mobile network operators marks a pivotal moment in Nigeria’s digital transformation, adding that the increase is the first tariff adjustment in 12 years which is expected to unlock substantial investment in telecommunications infrastructure.

In its report, GSMA advocated streamlining Right of Way permits to simplify and standardise the process to accelerate infrastructure deployment, implementing Critical National Infrastructure legislation to safeguard essential telecommunications assets to ensure resilience and reliability and reducing the tax burden on the mobile sector by addressing high taxation to encourage further investment in infrastructure.

“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. However, to fully unlock the potential of this reform, it is critical to implement 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 the government will increase GDP by around two percentage points by 2028. This would also create nearly 2 million jobs and raise an additional N1.6tn in tax revenue.

“This milestone reflects the successful partnership between the Nigerian government, industry stakeholders, and the GSMA, demonstrating how collaborative policy reforms can drive economic development and digital inclusion. By advocating for policies that balance affordability with the need for sustained investment in infrastructure, the GSMA has played a critical role in ensuring the benefits of mobile connectivity are accessible to all Nigerians,” the statement added.

Similarly, GSMA said it is a global advocate for sustainable policy reforms in the telecommunications sector and welcomes the FG’s decision as a major step forward for consumers and the economy.

“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.

“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 and the Internet of Things, 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,” the statement read.

Wamola noted that these recommendations are based on successes in other Sub-Saharan African markets, such as Kenya and South Africa, where similar policy reforms have proven effective in driving digital inclusion and fostering economic growth.

The statement added, “The GSMA remains committed to supporting the government, regulators, and industry stakeholders to implement these measures.

“The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for good, industry services and solutions, and outreach.

“This activity includes advancing policy, tackling today’s biggest societal challenges, underpinning the technology and interoperability that make mobile work, and providing the world’s largest platform to convene the mobile ecosystem at the MWC and M360 series of events.”