GSMA Supports NCC’s 50% Tariff Increase

The GSMA, a global organization advocating for sustainable policies in the telecommunications industry, has expressed support for the recent decision by the Nigerian Communications Commission (NCC) to approve a 50 percent tariff increase.

Recall that telecom operators had been pushing for a tariff hike, initially requesting a 100 percent increase. However, after extensive discussions, the NCC approved a 50 percent adjustment on January 20, 2025.

Reacting, GSMA described the move as a positive step for consumers and the economy, emphasizing that it would lead to job creation. “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 job 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,” said Caroline Mbugua, GSMA’s Senior Director of Public Policy and Communications for Sub-Saharan Africa.

She further explained the broader benefits of improved connectivity. “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 stressed the importance of taking bold steps like increasing tariffs to strengthen infrastructure in the telecom sector, despite economic challenges. She added that improved investment in telecommunications would help overcome difficulties in the digitization of Nigeria’s agricultural sector.

The NCC acknowledged the financial difficulties faced by households and businesses but emphasized that these adjustments would support industry sustainability. It maintained that the reforms “will positively influence sustainability.”

The GSMA believes that by enabling telecom companies to expand and upgrade their networks, the tariff increase will help close the digital gap and drive innovation in key sectors such as healthcare, education, and agriculture.
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