A landmark 50% increase in mobile tariffs, approved by the Nigerian Communications Commission (NCC) after 12 years of stagnation, is projected to unlock over $150 million in private investment and extend 4G network coverage to 94% of Nigeria’s population by 2028, according to a Wednesday report by the Global System for Mobile Communications Association (GSMA).
The move, hailed as “a critical step toward closing Nigeria’s digital divide,” could bring mobile internet access to an additional 9 million people, including 2 million in rural communities, while boosting GDP growth by two percentage points and generating 1.6 trillion naira in tax revenue, the GSMA stated.
For millions of Nigerians, this policy shift promises more than faster internet. Improved connectivity could revolutionise access to telemedicine, e-learning, and fintech solutions while enabling precision agriculture and smart logistics. “This isn’t just about networks—it’s about empowering farmers with real-time data, students with online classrooms, and entrepreneurs with digital tools,” said Angela Wamola, GSMA’s Head of Sub-Saharan Africa.
The tariff adjustment, the first since 2012, addresses years of underinvestment in infrastructure. With 4G coverage currently at 90%, the GSMA estimates the influx of funds will bridge gaps in underserved regions, where only 27% of rural residents use mobile internet.
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While the tariff hike may raise short-term costs for consumers, the GSMA argues it’s essential to “future-proof” Nigeria’s digital economy. “Sustainable investment ensures quality service and innovation,” Wamola emphasised.
The report highlights parallels with Kenya and South Africa, where similar reforms accelerated digital adoption and job creation.
However, the GSMA urged further action to maximise benefits, including:
- Streamlining Right of Way (RoW) permits to hasten network deployment.
- Classifying telecom infrastructure as Critical National Infrastructure (CNI) to protect against vandalism.
- Reducing sector-specific taxes to free up capital for rural expansion.
Beyond connectivity, the GSMA projects nearly 2 million new jobs in tech-driven sectors like manufacturing, trade, and transport. Enhanced infrastructure could also catalyze AI and IoT innovations—think smart grids to curb Nigeria’s chronic power shortages or drone-based crop monitoring for smallholder farmers.
“Imagine a mother in Kano consulting a doctor via video call or a startup in Lagos scaling globally through e-commerce,” Wamola said. “That’s the future we’re building.”
Success hinges on policy consistency. Delays in RoW approvals or overlapping taxes could derail progress. Yet, with Nigeria’s digital economy poised to contribute over $88 billion to GDP by 2028, stakeholders are optimistic. As one Lagos-based telecom engineer noted, “This is our chance to leapfrog into the 4th Industrial Revolution—if we get it right,” according to McKinsey
The NCC’s decision signals Nigeria’s ambition to lead Africa’s digital transformation. For citizens, the stakes are personal: better healthcare, education, and livelihoods. For the economy, it’s a gateway to global competitiveness.
