The Nigerian Communications Commission (NCC), in collaboration with consulting firm KPMG, has commenced a comprehensive review of telecommunications interconnection pricing, marking the first major reassessment of the sector’s tariff framework in almost eight years.
Key highlight:
NCC Launches Telecom Tariff Review
Review Targets Mobile Termination Rates
Industry and Economic Changes Prompt Action
Stakeholder Consultations and Data Collection
Objective is a Modern, Sustainable Framework
The review process was formally launched during a Mobile Termination Rate (MTR) stakeholder forum held in Lagos, bringing together regulators, telecom operators, and other industry participants to examine the wholesale pricing structure governing payments between networks for completing voice calls.
Mobile Termination Rates are the charges one telecom operator pays another for terminating calls on its network. The rates play a critical role in shaping competition, investment decisions, and, ultimately, the prices paid by consumers.
According to the NCC, the existing framework—introduced in 2018 and subsequently adjusted in 2022—no longer fully reflects the realities of the evolving telecommunications landscape.
The commission cited rapid technological developments, including the deployment of 5G services, the growing dominance of data-driven offerings, and the emergence of mobile virtual network operators (MVNOs), as key reasons for the review.
Economic conditions have also influenced the decision, with inflationary pressures and exchange rate depreciation significantly increasing operators’ costs and altering market dynamics.
Speaking at the forum, the Head of the NCC’s Competition and Tariff Unit, Omotayo Mohammed, said the exercise extends beyond a routine tariff adjustment and is intended to ensure that regulatory policies keep pace with changes across the industry.
He noted that the telecommunications market has undergone substantial transformation since the last pricing determination, requiring regulators to adapt to new technologies, services, and business models.
Mohammed explained that the review is being conducted under Section 108 of the Nigerian Communications Act 2003, which empowers the commission to ensure that tariffs remain fair, transparent, cost-reflective, and non-discriminatory.
KPMG, which is supporting the exercise, said the review will combine industry data, stakeholder consultations, and international benchmarking to produce recommendations for an updated pricing framework.
Wole Obayomi, Partner and Head of Tax and Regulatory and People Services at KPMG, said the study aims to identify shortcomings in the current regime while assessing whether periodic tariff reviews should become a structured feature of telecom regulation.
He emphasized that contributions from operators and other stakeholders would be essential in identifying practical solutions and strengthening the framework.
As part of the review, the NCC and KPMG will examine pricing practices across both wholesale and retail segments to determine whether existing regulations adequately address newer services and evolving business models within the industry.
The assessment will also consider whether current tariff structures can sustainably support investment, maintain service quality, and protect consumer interests.
To support the process, telecom operators will be required to provide detailed financial and operational information, including revenue, expenditure, profitability, market share, capital investments, service quality metrics, and usage trends over several years.
According to KPMG, the data will help regulators better understand industry performance and evaluate the long-term effects of existing pricing policies.
The review will involve technical consultations with mobile network operators, MVNOs, international carriers, interconnect exchange providers, and clearing houses, with participants expected to include representatives from finance, technical, and commercial divisions.
In addition, Nigeria’s telecom pricing framework will be compared with those of countries such as South Africa, Kenya, Indonesia, and Malaysia to identify international best practices and lessons applicable to the domestic market.
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The findings are expected to guide recommendations for a revised pricing model that reflects current market conditions while encouraging competition, infrastructure investment, and improved service delivery.
NCC Director of Public Affairs Nnenna Ukoha said the review affects the entire telecommunications ecosystem, from operators and investors to end users, noting that termination rates remain a key factor in market competition and pricing.
She added that the commission would incorporate stakeholder feedback through its collaborative regulatory approach and urged industry players to submit accurate data within the stipulated timelines to ensure the success of the exercise.
