The GSM Association (GSMA), a global body representing the mobile ecosystem, has stated that Nigeria needs approximately $360 million in investment to extend 4G network coverage to 98% of the country’s geographical area.
In its 2024 Year in Review report for Sub-Saharan Africa, the GSMA highlighted significant progress in Nigeria’s telecom sector.
Geospatial analysis revealed that 4G coverage in the country increased from 41% in 2019 to 84% by 2024. However, rural areas lag, with only 48% coverage.
“Expanding 4G coverage to 98% will require an additional $360 million in investment,” the report noted. The remaining 2% of Nigeria’s population resides in extremely remote, sparsely populated areas where alternative technologies, such as satellite connectivity, may be necessary.
The GSMA underscored the importance of policy reforms to attract investment in the telecom sector. It recommended eliminating sector-specific taxes on infrastructure and lifting retail price regulations, which could reduce the funding gap by 44%, bringing the required investment down to $200 million.
Additionally, the report highlighted the role of demand-side policies, including improving access to affordable 4G devices, in narrowing the investment shortfall.
The GSMA also emphasised the need for enhanced security measures for telecom infrastructure and the removal of right-of-way fees to boost expansion efforts.
The report stated that if the recommended policy reforms are implemented together, they could accelerate mobile broadband adoption in Nigeria by 2030.
The GSMA’s first edition of the Digital Africa Index revealed that countries with robust policies and regulatory frameworks tend to achieve higher levels of digital development.
However, only four African countries—Kenya, Mauritius, Seychelles, and South Africa—scored above 50 out of a possible 100 on the index. Most African nations, including Nigeria, scored below 50, indicating significant room for digital transformation.
Acknowledging the challenges in Nigeria’s telecom sector, the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, reaffirmed the government’s commitment to supporting the industry.
The declaration of telecom infrastructure as critical national infrastructure is one of the measures in place to promote growth.
Tijani also noted that while private sector operators focus investments in economically viable areas, the government is stepping in to finance infrastructure development in underserved regions. This approach aims to ensure more inclusive telecom coverage and improve service quality benchmarks across the country.
