Nigeria’s decision to raise mobile tariffs by 50% could unlock over $150 million in new investments and extend 4G coverage to 94% of the population, the Global System for Mobile Communications Association (GSMA) said in a statement on Wednesday.
The GSMA welcomed the Nigerian Communications Commission’s (NCC) approval of the country’s first mobile tariff adjustment in 12 years. According to the organization, the tariff increase could provide mobile internet access to an additional 9 million people, including 2 million in underserved areas.
“The tariff increase is projected to unlock over $150 million in additional investment, expanding 4G network coverage from the baseline 90% to 94% of the population,” the statement read. “This improvement 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.”
Beyond expanding connectivity, GSMA estimated that increased investment in mobile infrastructure and greater digitalization in key industries like agriculture, manufacturing, and transport could boost Nigeria’s GDP by two percentage points by 2028. The reforms could also generate nearly 2 million jobs and add N1.6 trillion in tax revenue.
Angela Wamola, GSMA’s Head of Sub-Saharan Africa, described the tariff hike as a positive step but mentioned the need for additional policy reforms to sustain long-term benefits. “By enabling sustainable investment, we are improving the quality of service for consumers and fostering opportunities for innovation and economic growth,” she said.
However, she stressed that further reforms are needed, including simplifying Right of Way permits, implementing protections for Critical National Infrastructure, and reducing the mobile sector’s tax burden. She pointed to similar policy changes in Kenya and South Africa that helped drive digital inclusion and economic growth.
