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January 29, 2025

GSMA projects $150m new investments into telecoms sector via 50% telephone tariff hike

By Upfrontdigital News 0 69 Views

By Favour Unukaso
DESPITE mounting opposition against the recently approved 50 per cent tariff hike for telephony services in Nigeria, the GSM Association (GSMA) has informed that the hike has the potential to unlock more than $150 million in additional mobile network investment and expand 4G coverage to 94 per cent covering nine million new consumers.
Besides, this also has the ability to create nearly two million jobs and raise an additional N1.6 trillion in tax revenue.
GSMA in a statement yesterday said the hike approved by the Nigerian Communications Commission (NCC), the first tariff adjustment in 12 years, is set to unlock substantial investment in telecommunications infrastructure in the country.
The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, welcomes this 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.
Head Sub-Saharan Africa at GSMA, Angela Wamola, commented on the development: “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 of 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 government will increase GDP by around two percentage points by 2028. This would also create nearly two million jobs and raise an additional NGN 1.6 trillion in tax revenue.”

Wamola

According to the telecoms advocacy body, this milestone reflected 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.
GSMA said 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 (AI) and the Internet of Things (IoT), 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.

NCC EVC, Maida

While the tariff increase is a significant step forward, the GSMA calls for further policy actions to amplify its impact. These priorities, outlined in the recent GSMA report The Role of Mobile Technology in Driving the Digital Economy in Nigeria, include streamlining Right of Way (RoW) permits; . implementing Critical National Infrastructure (CNI) legislation; reducing the tax burden on the mobile sector.
According to GSMA, 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.

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