71% of Nigerians lack regular mobile internet access – GSMA

A Groupe Special Mobile Association report has revealed that about 71 per cent of Nigerians do not have regular access to mobile Internet.

The GSMA report was launched recently in Abuja amid ongoing debate over Nigerian telecom operators’ demand for a tariff increase.

While the operators said an increment was expedient to mitigate the impacts of the various challenges they were facing in the industry, the government wanted them to explore other alternatives to address their challenges.

The report highlighted several industry challenges that were limiting telecom coverage expansion, including a complex and costly process of securing rights of way, a complex tax environment, and increasing costs that make it difficult for the industry to maintain sustainable levels of investment.

Despite the potential for growth, it noted that Nigeria could add 15 million Internet users by 2028 with the right policy in place, adding that a broader digital transformation of the Nigerian economy was not possible without universal access to digital connectivity.

The report stated, “While 29 per cent of Nigerians are regularly using mobile internet, there remains untapped potential; 71 per cent are not accessing these services regularly.

“An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028. However, the sector faces challenges to infrastructure deployment.”

It outlined significant hurdles facing Nigeria’s telecom sector, including the arduous Rights of Way acquisition process and the complex tax regime, which escalate operational costs and hinder sustainable investment.

It also mentioned that rising expenses, driven by fuel price hikes and increased government fees, exacerbated the challenge of maintaining viable investment levels.

Highlighting the pivotal partnership between the mobile industry and the government, the report advocated for policy initiatives to foster an enabling economic and regulatory framework.

It recommended the establishment of a legal framework for critical national infrastructure, streamlining of rights-of-way issuance, reduction of tax burdens, and fostering of a conducive regulatory climate to spur sustainable investment.

“Future policies should be geared towards reducing the cost and complexity of infrastructure rollout to encourage investment and boost the adoption of mobile broadband.

“The impact of such actions would go far beyond mobile, driving productivity gains across the economy and creating millions of new jobs in Nigeria,” the report stated.