The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, has welcomed the Nigerian Communication Commission (NCC) ‘s recent approval of a 50 percent tariff increase.
Following consistent pressure from telecom operators on the need for tariff increases, NCC finally gave the approval on January 20, 2025, albeit for 50 per cent rather than the 100 per cent increase the operators were demanding.
Reacting to this development, the GSM described it as a major step forward for consumers and the economy, saying that it will stimulate more job creation for the Nigerian youths.
READ ALSO: NCC Approves 50% Tariff Hike For Telcos
“If you look at the digitalization report that we did in Nigeria that we launched in May last year, this is where the details of the jobs creation came about. We did model the impact of policy reforms in different areas, including the areas around tariff increase and how this would impact sectors such as agriculture, manufacturing, transport, trade, health care, and government.
“For that, it was clear that with the improvement of the operating environment in Nigeria, these jobs would be created across various sectors at different levels of skill capability,” Caroline Mbugua, GSMA’s Senior Director Public Policy, & Communications Sub-Saharan Africa, said.
“And how these jobs are created is the multiple effects of connectivity and the positive externalities of connectivity. I’ll give you an example. I once traveled to a country here in Africa and wanted to go and purchase an item in one of the markets, a very beautiful outfit that I had seen.
“But unfortunately, I was not able to actually buy this product because we tried and I couldn’t get a mobile signal for me to get my mobile money and pay for this product. So, the challenge is that there was that lost opportunity for a sale for the vendor and for me, for the product that I wanted to get.
“Now we need to understand that’s the reason why we are here today. For that person that is looking to make a difference in their life, leveraging technology to be able to ease the running of their business and, of course, the profitability of their business.”
Mbugua further emphasized the need to take the bold step to increase the tariff to enhance infrastructural development in the sector even in the face of inflationary risk.
She added that investing in telecom infrastructure will also be able to unlock challenges being faced in the digitization of the agricultural economy.
On her part, the Head of Sub-Saharan Africa, GSMA Angela Wamola noted that 4G will be the dominant technology in Africa.
She stated that 5G adoption is gathering momentum, but very slow in Africa compared to the rest of the world.
“We are in the decade of 5G and emerging technologies that I’ve mentioned. But do you know that by the end of the decade, 4G adoption in Sub Saharan Africa, Nigeria included, will reach 50 per cent.
The NCC said it recognised the financial pressures faced by Nigerian households and businesses and remained empathetic to the impact of tariff adjustments, but maintained that the industry reforms “will positively influence sustainability”.
The GSMA believes that by enabling mobile operators to invest in expanding and upgrading their networks, the tariff increase will bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture.
