GSMA Says Nigeria Needs $360M to Achieve 98% 4G Coverage

The GSM Association (GSMA) has revealed that Nigeria will require approximately $360 million in investment to extend 4G coverage to 98% of the country’s geographical area. This was highlighted in its 2024 Year in Review report for Sub-Saharan Africa, which detailed advancements in the region’s telecom industry.

According to the GSMA, Nigeria’s 4G coverage improved significantly, rising from 41% in 2019 to 84% in 2024. However, rural areas lag behind with only 48% coverage. The organization noted that the most remote 2% of the population would likely rely on satellite technology for connectivity due to their sparse distribution.

The GSMA also emphasized the need for policy reforms to lower costs and encourage investment in the sector. It recommended removing sector-specific taxes on telecom infrastructure and eliminating retail price regulations. Implementing these reforms could cut the investment gap by 44%, reducing the amount required to $200 million.

Demand-side policies, such as improving access to affordable 4G devices, were also identified as critical for bridging the gap. Additionally, the GSMA stressed the importance of infrastructure security and eliminating Right of Way fees to accelerate 4G adoption.

Findings from the GSMA’s Digital Africa Index showed the impact of enabling policies on digital development. Countries like Kenya, Mauritius, Seychelles, and South Africa, which scored above 50 on the index, showcased higher levels of mobile broadband adoption due to strong regulatory frameworks. In contrast, most African nations scored below 50, signalling significant room for improvement.

In response to these challenges, Nigeria’s Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, highlighted the government’s efforts to support the telecom sector. He mentioned initiatives such as declaring telecom infrastructure as critical national infrastructure and direct government investment in underserved areas to complement private sector efforts.