The Nigerian Communications Commission (NCC) is the independent regulatory authority in Nigeria, charged with the responsibility of regulating and overseeing the telecommunications industry in Nigeria, by ensuring fair competition amongst telecommunication service providers, protecting consumer rights, promoting universal access, and fostering the development of a robust, efficient, and innovative communications infrastructure. It was established by Decree No. 75 of 1992 by the Federal Military Government of General Ibrahim Babangida.
Before I started my national service year at the NCC, I did not know much about the activities of the NCC. I assumed by their name they were just another communications company in Nigeria. Following the commencement of my youth service at NCC, I have come to know that the NCC is an important regulatory body in Nigeria because it helps to keep telecommunication companies in check and ensures that both the companies and the consumers are getting fair shares of their investments. The NCC protects consumers from unfair business practices such as exorbitant prices or fraud and makes sure that the Nigerian telecommunications industry delivers high quality services to them. They set benchmarks and hold telecommunication companies to the set standards and encourage investment in the industry by promoting competition and ease for new companies to enter the telecommunications market.
Furthermore, they respond to cyber threats, promote cyber consciousness and collate statistical analysis on tariffs, telecommunications technology and trends in services provided by telecommunications companies. They generate a lot of revenue annually from their operations, which contributes to the Nigerian economy.
It is important for people to know that the NCC does not just exist as a regulatory body but as a facilitator of growth and innovation. The Commission has been influential in driving significant initiatives, such as the distribution of broadband services across the country and the promotion of mobile financial services, which are vital for economic empowerment.
Just recently, the NCC collaborated with the Central Bank of Nigeria and network operators in Nigeria to implement the End User Billing (EUB) model, which aims to put consumers in better and more transparent control of their spending. It also enables them to understand how they are charged when they use USSD to make transactions, providing them with the option to be charged from their airtime instead of their banks. The NCC is also working hand in hand with the CBN to ensure that network providers comply with these billing rules and sanctions defaulters, where applicable.
The NCC has made strides in consumer protection, launching campaigns to educate consumers about their rights and the services available to them and how to develop cyber hygiene habits. This proactive approach to consumer education is essential as many users may not fully understand the telecom services they use or how to protect themselves online.
The mandate of the NCC is contained in the Nigerian Communications Act of 2003 and was signed into law by the former president, Chief Olusegun Obasanjo (GCFR) on the 8th of July, 2003. The Act formally established the NCC as the regulatory authority for the telecommunications sector in Nigeria. It outlines the responsibilities of the NCC, which include regulating the supply of telecommunications services, promoting competition, protecting consumer interests, and ensuring the provision of nation-wide access to telecommunications services. It also details the functions of the NCC, which include licensing telecommunications operators, setting standards for the industry, monitoring and enforcing compliance with regulations, promoting the development of telecommunications infrastructure and protecting consumer rights and interests.
The Nigerian Communications Commission has had a profound impact on regulating the communications industry in Nigeria and there are some key areas where its influence is particularly notable. The NCC has collaborated with international regulatory bodies such as the International Telecommunications Union (ITU), the African Telecommunications Union (ATU), West African Telecommunications Regulatory Assembly (WATRA) and the Information Systems Audit and Control Association (ISACA) to align its practices with global standards, enhancing its credibility and nurturing cross-border cooperation.
Its stable regulatory environment has attracted significant investments from international telecom companies. For instance, the entry of companies like Airtel and MTN has contributed to job creation and technological advancement in the sector and led to economic growth in the country.
The NCC has also helped with the expansion of connectivity, especially in rural areas. In 2020, the NCC facilitated the placement of telecommunications infrastructure in remote areas through the Universal Service Provision Fund. For example, one of the projects in states like Ekiti and Zamfara involved the installation of base stations, which significantly improved mobile and internet access for residents who previously had little to no connectivity.
Additionally, the NCC has established and enforced quality of service standards for telecommunications operators, leading to improved service reliability and customer satisfaction. It regularly monitors and assesses the performance of service providers and ensures that they comply with the policies and standards penalizes operators when they fall short of these policies and standards.
In 2020, mobile networks such as MTN, Airtel and Globacom were sanctioned Six Million Naira only (₦6,000,000.00), Three Million and Two Hundred and Fifty Thousand Naira (₦3,250,000.00) and Nine Million and Two Hundred and Fifty Thousand Naira (₦9,250,000.00), respectively by the NCC for violation of the SIM Replacement Guidelines of 2017.
In 2021, the NCC implemented the International Terminal Rate (ITR) for voice services which determined the floor price for terminating international calls on local networks in Nigeria to be 0.045 USD. This is now paid in US Dollars to compensate network providers for any devaluation in the Naira. It was previously paid in Naira but had a negative impact on telecommunications operators as a result of the incessant fluctuations of the Naira. Operators are open to negotiate with international partners above the floor price. This encourages fair competition between small and large network providers as the larger firms cannot undercut smaller firms in pricing to drive them out.
Furthermore, the NCC has launched an online consumer complaints platform where consumers can lodge complaints about service providers. This initiative has streamlined the resolution process, empowering consumers to voice their concerns and receive timely responses. It has also initiated campaigns to educate consumers about their rights and available services, allowing them to make informed choices and lodge complaints effectively.
Despite its significant contributions, the NCC faces several limitations that hinder its success. Some of the challenges include political influence, lack of consumer awareness, technological evolution, limited resources, infrastructural issues, coordination with other agencies and enforcement limitations. As with many regulatory bodies, political pressure can lead to biased decision-making, undermining the NCC’s independence and decision-making process.
Even though the NCC has made efforts in consumer education, there remains a significant gap in awareness, particularly in rural areas. Many consumers are not fully aware of their rights or the services available to them, limiting their ability to hold providers accountable.
Also, the rapid evolution of technology such as 5G or digital services often overtakes the NCC’s regulatory framework, making it difficult to implement timely and relevant policies. There’s also insufficient funding and shortage of staff who are up to date in emerging technologies, which can hinder the NCC’s ability to carry out extensive research, conduct audits, and implement effective monitoring systems.
Furthermore, there are many rural and underdeveloped areas lacking adequate telecommunications infrastructure which leads to issues like poor call quality and unreliable internet services, thwarting the NCC’s efforts to ensure reasonable service provision. In addition, the lack of coordination between the NCC and other government agencies and the overlapping of jurisdictions between multiple regulatory bodies such as the Federal Competition and Consumer Protection Commission (FCCPC), the Nigeria Data Protection Commission (NDPC) and the Nigerian Electricity Regulatory Commission (NERC) can hinder the implementation of its widespread policies.
To tackle these challenges and enable the NCC to better fulfil its obligation of promoting a competitive and consumer-friendly telecommunications sector in Nigeria, the government must increase NCC’s funding and make sure that its staff are well trained with current knowledge of the telecommunications industry, foster independence from external influence and control, and improve coordination among regulatory bodies.
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The NCC can strengthen its enforcement of Subscriber Identity Module (SIM) registrations by ensuring that every SIM card is matched to a valid National Identification Number (NIN). It can also use biometric verifications such as fingerprints or facial recognition to ensure that people do not register multiple SIMs under false identities.
Additionally, the NCC can use automated systems such as AI and machine-learning to analyze criminal patterns, flag anomalies such as repeated short calls or bulk call forwarding and link associates in a crime network. The NCC can use cell tower signals to accurately locate phones during crimes in real-time. To effectively use these cell towers, it should upgrade network capabilities to support immediate location fixes and can also encourage telecom providers to establish their networks in rural and isolated areas, where criminals may go to hide.
In collaboration with security agencies, the NCC should equip security agencies with lawful interception hardware to capture live location and metadata of suspect phones. The Nigerian police and DSS already have tracking kits, but they are limited. These should be expanded and updated to improve accuracy in tracking criminals and suspects.
To encourage telecom operators to expand to rural areas, the NCC in collaboration with the government can offer subsidies or reduced taxes to telecom operators to make rural expansion more affordable. It can make reforms to its regulations by reducing red tape for telecom companies that want to expand to rural areas. The NCC should also collaborate with other government agencies to secure funds and tax policy changes for effective rural integration.
What once felt to me like just another telecom company as an outsider with a simplistic view before I began my service year, has transformed into something far more impressive in my eyes: the NCC as a proactive regulator and driving force behind Nigeria’s digital evolution. After experiencing its operations first-hand and collaborating with its dedicated staff, I have come to admire how the Commission expertly juggles consumer advocacy, technological advancement, and broadening connectivity across the nation. In short, I arrived expecting a typical communications agency and I now depart convinced it is the very spark igniting our digital future.
Tare-Ebi Victory Guanah is a graduate of Media and Communications from the United Kingdom and has just completed her National Youth Service program at the NCC.
