The Global System for Mobile Communications Association (GSMA) on Wednesday projected that the 50 percent tariff hike for calls and data will generate at least N1.6 trillion in tax revenue for the Nigerian government and increase the coverage of 4G networks from the baseline 90 percent to 94 percent of the population.
According to GSMA, around 2 million people will be able to receive mobile internet services based on current adoption levels in rural areas, out of the approximately 9 million people who will benefit from this upgrade. The decision would also allow for significant investment in telecommunications infrastructure
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The GSMA noted that this milestone illustrates how cooperative policy reforms may promote economic development and digital inclusiveness and demonstrates the fruitful collaboration between the GSMA, industry stakeholders, and the Nigerian government.
The GSMA has been instrumental in guaranteeing that the advantages of mobile connectivity are available to all Nigerians by promoting policies that strike a balance between affordability and the requirement for consistent infrastructure investment.
Benefits of the telecom tariff hike
Transformative access to digital services, such as telemedicine, e-commerce, online education, and mobile financial tools, will be made possible by improved network coverage.
Furthermore, the investment will promote the uptake of next-generation technologies like the Internet of Things (IoT) and artificial intelligence (AI), which are critical for promoting innovation in industries like smart healthcare, connected transportation, and precision agriculture.
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Nigeria is establishing itself as a leader in the digital economy of Africa by encouraging the adoption of these technologies.
On January 20, the Nigerian Communications Commission (NCC) announced the approval of a 50 percent telecom tariff hike for the first time in 12 years.
However, the announcement of the tariff hike has generated a lot of resistance from subscribers and NGOs, with the Nigerian Labour Congress (NLC) declaring a mass rally on February 4 to kick against it.