NCC Approves 50% Telecom Tariff Increase, Projected to Boost Revenue and Expand 4G Coverage

The 50% telecom tariff increase approved by the Nigerian Communications Commission (NCC) is projected to generate an additional N1.6 trillion in tax revenue while also enabling crucial investment in the nation’s telecom infrastructure. The increase, the first in 12 years, is expected to expand 4G coverage to 94% of Nigeria’s population, providing mobile internet access to an additional nine million people, including two million in underserved areas.

The move has been hailed by the Global System for Mobile Communications Association (GSMA) as a step toward bridging Nigeria’s digital divide, with benefits extending to sectors like healthcare, education, and agriculture. It’s believed that the policy could increase GDP by about two percentage points by 2028 and create nearly two million jobs.

However, the National Association of Telecommunications Subscribers plans to challenge the tariff hike in court, and a report from MTN Nigeria reveals that delays in tariff increases over the past decade have led to a forecasted drop of $870 million in capital expenditure by 2026, which may hinder future telecom investments.

The GSMA has urged the Nigerian government to implement additional measures, such as simplifying right of way permits and reducing the mobile sector’s tax burden, to unlock the full potential of this reform and drive further digital adoption.

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