Nigeria’s telecommunications regulator has launched a major review of pricing structures in the industry as it seeks to align regulations with current market realities.
The Nigerian Communications Commission (NCC), in partnership with consultancy firm KPMG, formally commenced the exercise during a stakeholder forum held in Lagos. The review marks the first comprehensive reassessment of telecom interconnection pricing in about eight years.
Why The Review Is Taking Place
The commission said the telecom landscape has changed significantly since the current pricing framework was introduced.
Over the past decade, the industry has witnessed the expansion of 5G technology, increased reliance on data services, and the emergence of mobile virtual network operators. These developments have altered how operators deliver services and generate revenue.
Economic factors have also played a role. Rising inflation and the depreciation of the naira have increased operating costs across the sector, prompting regulators to examine whether existing pricing structures remain suitable.
Focus On Interconnection Charges
A key part of the review centres on Mobile Termination Rates (MTRs), which are fees telecom operators pay one another when calls terminate on a different network.
These charges influence competition among operators and can affect pricing decisions across the market.
Industry experts note that maintaining fair and cost-reflective termination rates is essential for encouraging investment while ensuring consumers continue to receive quality services.
NCC Seeks Modern Regulatory Framework
Speaking during the engagement, the Head of the NCC’s Competition and Tariff Unit, Omotayo Mohammed, said the exercise reflects the need for regulations to keep pace with industry developments.
According to him, both technology deployment and market structures have evolved considerably since the last major determination.
He explained that new business models and service categories have emerged, creating areas that require updated regulatory attention.
Mohammed added that the review is being conducted under the provisions of the Nigerian Communications Act 2003 to ensure tariffs remain fair, transparent, and reflective of actual costs.
KPMG To Lead Data Analysis And Benchmarking
KPMG said the review will combine extensive data collection, consultations with stakeholders, and comparisons with international markets.
The firm’s representatives explained that the process aims to identify weaknesses in the existing framework and determine whether more frequent pricing reviews should become part of industry regulation.
Consultants also stressed the importance of industry participation, noting that operators and service providers possess valuable insights that can help shape practical solutions.
Operators To Submit Financial And Operational Data
As part of the exercise, telecom companies will provide detailed information covering revenues, expenses, profitability, investment levels, market performance, and service quality indicators.
Regulators believe the data will offer a clearer understanding of industry trends and reveal how current pricing policies have affected operators over time.
The review will also examine usage patterns and infrastructure investments across different segments of the market.
International Comparison To Shape New Framework
The NCC and KPMG plan to compare Nigeria’s telecom pricing model with those used in several other countries.
The benchmarking exercise will include markets such as South Africa and Kenya, as well as emerging economies like Indonesia and Malaysia.
According to the consultants, these countries were selected because they share similar economic conditions and have implemented regulatory approaches relevant to Nigeria’s telecom sector.
Findings from the study will help regulators develop recommendations for a revised pricing structure that reflects both local realities and global best practices.
Stakeholders Expected To Play Active Role
The review process will involve mobile network operators, virtual network operators, international carriers, clearing houses, and interconnect exchange providers.
Technical, financial, and commercial teams from participating organisations are expected to contribute during consultations and bilateral discussions.
NCC Director of Public Affairs, Nnenna Ukoha, said the exercise affects every part of the telecom ecosystem, including operators, investors, and consumers.
She noted that interconnection pricing remains a critical factor in competition, service delivery, and overall market development.
Ukoha also urged stakeholders to submit accurate information within the stipulated timelines, stressing that the success of the review depends on quality data and broad industry participation.
The commission said its goal is to establish a transparent and competitive pricing framework that supports investment, strengthens network infrastructure, and improves service quality for telecom users across Nigeria.
