Nigeria will require approximately $360 million to extend 4G service to 98% of the country’s geographic area, according to the GSM Association (GSMA), a global organisation that unifies the mobile ecosystem.
This was revealed by the organisation in its “2024 Year in Review” report for Sub-Saharan Africa, which also highlighted significant advancements in the telecom sector.
The organisation said a geospatial study revealed that Nigeria’s 4G coverage increased from 41% in 2019 to 84% in 2024.
“However, it is much lower in rural areas, at 48%. The additional expenditure required to attain 98% 4G coverage in Nigeria is presently estimated at $360 million,” it claimed.
It further stated that because the remaining 2% of the population is sparsely populated and extremely remote, additional technologies like satellites will probably be needed for connectivity.
Changing Policies To Cut Costs
The GSMA emphasized the need for policy changes in the nation’s telecom sector, pointing out that removing retail pricing control and sector-specific infrastructure taxes would cut the investment gap by 44% to $200 million.
- It also emphasized how crucial demand-side measures like affordable and accessible 4G devices are to close the investment gap.
- The group also suggested measures for Nigeria to secure its telecommunications infrastructure and do away with right-of-way fees.
The GSMA said, “We quantified the enablement effect in accelerating the adoption of mobile broadband by 2030 if the policy reforms recommended in this report are adopted altogether.”
Index of Digital Africa
The GSMA added that the results of its inaugural Digital Africa Index show unequivocally that nations with enabling laws and regulations – and, more crucially, those that have been put into place with political will – are more likely to have higher levels of digital development, which is a result of widespread use of mobile broadband.
“However, only four countries (Kenya, Mauritius, Seychelles, and South Africa) have a score above 50 (the maximum score being 100),” it stated.
According to the agency, most African nations scored below 50, indicating they have much room to accelerate digital transformation through more supportive legislative frameworks.
What To Note
Nigeria’s Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, recently acknowledged the difficulties facing the country’s telecom sector and stated that the government is helping the sector in several ways, including designating telecom infrastructure as essential national infrastructure.
- According to Tijani, the government is now investing in infrastructure to assist operators in reaching a wider audience since it has recognized that it cannot fully rely on private sector investment.
- He claims that private sector operators usually invest in regions with critical mass and economic activity because they can make money there.
According to him, the government has evaluated the circumstances and established standards for the calibre of services that should be provided nationwide.
