Nigeria needs an estimated $360 million investment to expand its 4G network coverage to 98% of the country’s geographical area, according to the global mobile industry’s trade group, GSMA.
This is a key highlight of the “ GSMA 2024 Year in Review” report for Sub-Saharan Africa where authors of the report underscores that the investment is crucial for bridging the digital divide and enhancing connectivity in underserved regions.
The GSMA says that without significant investment, Nigeria will struggle to achieve comprehensive 4G coverage. The report suggests that removing sector-specific taxes on telecoms infrastructure, and retail price regulation could reduce the investment gap by approximately 44%, bringing the required investment down to around $200 million.
GSMA: Nigeria’s 4G coverage increased to 84% in 2024
As one of Africa’s largest economies, Nigeria has made significant progress in expanding its telecommunications infrastructure over the past few years. The country’s 4G coverage has increased dramatically, rising from 41% in 2019 to 84% in 2024. However, despite this growth, rural areas still lag behind, with only 48% coverage.
The remaining population in remote and sparsely populated regions may require satellite technologies for adequate connectivity, according to the GSMA report that highlights the importance of investing in digital infrastructure as a means to drive economic growth and improve access to essential services.
With about 83% of employment in Africa linked to the informal economy, enhancing digital connectivity is vital for integrating these workers into the formal economy and providing them with opportunities for advancement.
The GSMA says that without significant investment, Nigeria will struggle to achieve comprehensive 4G coverage. The report suggests that removing sector-specific taxes on telecoms infrastructure, and retail price regulation could reduce the investment gap by approximately 44%, bringing the required investment down to around $200 million.
Additionally, the GSMA recommends improving access to affordable 4G devices and ensuring the security of telecoms infrastructure. Eliminating Right of Way fees is also a critical step toward facilitating investment in necessary infrastructure. “If the policy reforms recommended in this report are adopted altogether, they could significantly accelerate mobile broadband adoption by 2030,” the GSMA states.
Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has acknowledged the critical need for public investment to complement private-sector efforts in expanding telecom infrastructure. He emphasized that declaring telecoms infrastructure as critical national infrastructure is essential for attracting investments needed to improve connectivity.
The Federal Government aims to work closely with stakeholders in the telecoms sector to ensure that quality benchmarks are set for services nationwide. This collaborative approach is vital for addressing existing challenges and ensuring that all Nigerians can benefit from improved telecommunications services.
The findings from the GSMA’s “2024 Year in Review” report highlight both the progress made in expanding Nigeria’s 4G network and the significant challenges that remain. With an estimated $360 million needed to achieve 98% coverage, it is clear that strategic investments and policy reforms are essential for fostering a more connected and inclusive digital economy.
Home
