The Global System for Mobile Communications Association (GSMA) has projected a 2% increase in the telecommunications sector’s contribution to Nigeria’s Gross Domestic Product (GDP) by 2028, following the government’s approval of a 50% tariff increase in telecom services.
GSMA disclosed this during the presentation of its Digital Economy Report 2024 to the media over the weekend.
At the media briefing, GSMA executives, Angela Wamola, Head of Sub-Saharan Africa, and Caroline Mbugua, senior director of Public Policy & Communications for Sub-Saharan Africa, also addressed the potential impact of the 50% tariff hike on the sector, consumers, and the broader economy.
According to GSMA, the tariff hike by the government will attract investment and infrastructure development that will translate to digital transformation for industries such as agriculture, manufacturing, trade, and government services.
Wamola who gave this insight noted that the Nigerian telecommunications sector accounted for 13.5% of the countryâs GDP in 2023, translating to approximately N33 trillion.
She said:
Reiterating Wamola’s projections, Mbugua stressed that as the telecom industry grows the Nigerian economy will benefit.
Her words:
GSMA also projected that the migration to 5G coverage will add 15 million people to the number of internet users in Nigeria by 2028, ThisDay reports.
Mbugua said the growth and development of the sector and the broader economy would be stimulated by 2028 if the necessary 4G and 5G coverage with the right level of quality of service was provided.
TimesNow.com.ng reported that MTN has reacted to the federal government’s decision to increase call, data, and SMS tariffs.
The telecommunications giant assured subscribers that the tariff adjustment would improve services.
Karl Toriola, CEO of MTN Nigeria, said the adjustment would address rising operational costs and ensure critical investments in infrastructure in the telecom industry.
Proofreading by Nkem Ikeke, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
