The Global System for Mobile Communications Association (GSMA) has said Nigeria will generate an additional N1.6 trillion in tax revenue while driving investment in telecommunications infrastructure, from the recent 50 per cent tariff increase approved by the Nigerian Communications Commission (NCC).
The association, in a statement, described the tariff adjustment, which is the first in 12 years, as a significant step towards bridging Nigeria’s digital divide.
It said the policy is projected to expand 4G coverage to 94 per cent of the population and provide mobile internet access to an additional nine million people, including two million in underserved areas.
The association further said it welcomed this decision as a major step forward for consumers and the economy.
According to GSMA, by enabling mobile operators to invest in expanding and upgrading their networks, the tariff increase would bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture.
Commenting on the development, Head of Sub-Saharan Africa at GSMA, Angela Wamola, said by enabling sustainable investment, Nigeria was 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 two million jobs and raise an additional N1.6tn in tax revenue,” she added
The body said the tariff increase is projected to unlock over $150m in additional investment, expanding 4G network coverage from the baseline 90 per cent to 94 per cent of the population.
The improvement, GSMA pointed out, 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.
“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,” it added.
