The GSMA projected that increased digitalisation across sectors such as agriculture, manufacturing, transport, trade, and governance could boost Nigeria’s GDP by around two percentage points by 2028. This would also result in the creation of nearly two million jobs while adding an extra N1.6tn in tax revenue.
Abuja, Nigeria – The Nigerian government is set to generate an estimated N1.6 trillion in additional tax revenue following the recent 50 per cent tariff increase approved by the Nigerian Communications Commission (NCC), according to the Global System for Mobile Communications Association (GSMA).
In a statement on Wednesday, the GSMA described the tariff adjustment—the first in 12 years—as a significant step toward bridging Nigeria’s digital divide. The policy is expected to expand 4G coverage to 94 per cent of the population and provide mobile internet access to nine million additional people, including two million in underserved areas.
The global telecommunications body welcomed the decision, emphasizing that it would drive investment in infrastructure and enhance service quality for consumers.
Boosting Investment and Economic Growth
Angela Wamola, Head of Sub-Saharan Africa at GSMA, commended the NCC’s move, stating that the decision would enable sustainable investment in the sector.
“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.
She, however, stressed the need for additional reforms, including simplifying Right of Way permits, implementing a Critical National Infrastructure plan, and reducing the mobile sector’s tax burden. These measures, she noted, would accelerate digital adoption across key industries.
The GSMA projected that increased digitalisation across sectors such as agriculture, manufacturing, transport, trade, and governance could boost Nigeria’s GDP by around two percentage points by 2028. This would also result in the creation of nearly two million jobs while adding an extra N1.6tn in tax revenue.
Investment and Infrastructure Expansion
The association further revealed that the tariff hike is expected to unlock over $150 million in additional investment, expanding 4G network coverage from 90 per cent to 94 per cent of the population. This improvement would benefit around nine million Nigerians, with nearly two million in rural areas gaining access to mobile internet services.
“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,” the statement read.
NCC Justifies Tariff Hike Amid Opposition
On January 20, the NCC officially approved the 50 per cent tariff increase for telecom operators, citing rising operational costs and the need to maintain industry sustainability.
The commission, in a statement signed by Reuben Muoka, Director of Public Affairs, explained that the decision aligns with its regulatory responsibilities under Section 108 of the Nigerian Communications Act, 2003.
However, the National Association of Telecommunications Subscribers (NATCOMS) has opposed the tariff hike and has threatened to challenge the decision in court.
Telecom Industry Faces Decline in Investment
Meanwhile, a document from MTN Nigeria, obtained by REPORT AFRIQUE, has raised concerns over a potential $870 million decline in capital expenditure (CAPEX) by 2026 due to years of delays in tariff adjustments.
According to the document, telecom investments in Nigeria dropped from $1.41 billion in 2022 to $1.16 billion in 2023 and are projected to fall further to $0.47 billion in 2024. By 2026, investment is expected to remain low at $0.50 billion, marking an $870 million shortfall compared to 2022 figures.
This 18 per cent decline in planned capital expenditures is largely attributed to the delayed tariff hike, which has hindered telecom companies from offsetting rising operational costs and financing network expansion.
Industry analysts warn that if these investment trends continue, Nigeria’s telecom infrastructure development could stagnate, affecting network quality and service delivery across the country.
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