GSMA: Telecom tariff hike will generate N1.6trn in tax revenue

The Global System for Mobile Communications Association (GSMA), a global advocate for telecommunications policy reforms, says the recent increase in telecommunications tariff in Nigeria will generate N1.6 trillion in tax revenue.

On January 20, the Nigerian Communications Commission (NCC) granted approval to telecommunications companies (telcos) to implement a 50 percent tariff increase.

In a statement on Wednesday, the association welcomed the development, describing it as a major step forward for consumers and the economy.

According to GSMA, the tariff adjustment reflects a successful partnership between the Nigerian government, industry stakeholders, and the GSMA, demonstrating how collaborative policy reforms can drive economic development and digital inclusion.

Commenting on the development, Angela Wamola, head of Sub-Saharan Africa at GSMA, said the decision by the NCC is a milestone for Nigeria’s digital future.

She said to maximise the impact of the reform, it is essential to take further steps, including streamlining right-of-way permits, establishing a critical national infrastructure plan, and reducing the tax burden on the mobile sector.

“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,” Wamola said.

“This would also create nearly 2 million jobs and raise an additional NGN1.6 trillion in tax revenue.” 

According to the association, the decision is expected to unlock over $150 million in additional investment, expand fourth-generation (4G) network coverage to 94 percent of the population, and provide mobile internet access to an estimated nine million more people, including two million in underserved areas.

GSMA said the tariff increase will allow mobile operators to enhance and expand their networks, helping to close the digital gap and drive innovation in key sectors such as healthcare, education, and agriculture.

“Improved network coverage will enable transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial tools,” the association said.

The group also said the investment will drive the adoption of emerging technologies such as artificial intelligence (AI) and the internet of things (IoT), advancing innovation in areas like precision agriculture, connected transportation, and smart healthcare.

GSMA added that embracing the technologies will help Nigeria position itself as a leader in Africa’s digital economy.