The Nigerian Communications Commission (NCC) has launched a comprehensive review of Nigeria’s telecommunications pricing framework, marking the first major reassessment of industry tariffs in nearly a decade.
The review, being conducted in partnership with global consulting firm KPMG, officially commenced during a Mobile Termination Rate (MTR) stakeholder forum held in Lagos. The exercise brings together regulators, telecom operators, and key industry stakeholders to examine wholesale pricing structures that determine how network providers compensate one another for completing voice calls across different networks.
The initiative comes at a time when Nigeria’s telecommunications landscape is undergoing significant transformation driven by rapid technological advancement, evolving consumer behavior, and changing economic realities.
Mobile Termination Rates, which are the charges paid by one telecom operator to another for routing calls across networks, play a critical role in shaping competition, investment decisions, and the overall pricing of telecom services offered to consumers.
According to the NCC, the current framework, which was established in 2018 and adjusted in 2022, no longer fully reflects the realities of today’s telecom market. Since then, the industry has witnessed the rollout of 5G technology, increased reliance on data-driven services, the emergence of Mobile Virtual Network Operators (MVNOs), and substantial economic changes, including inflation and currency depreciation.
Speaking during the forum, the Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, emphasized that the exercise is far more than a routine tariff adjustment. He noted that the telecommunications sector has evolved considerably in terms of technology deployment, service delivery models, and market structure.
Mohammed explained that regulatory frameworks must keep pace with industry developments to remain effective and relevant. He stated that the review is being conducted under the provisions of Section 108 of the Nigerian Communications Act 2003 to ensure that telecom tariffs remain fair, transparent, cost-reflective, and non-discriminatory.
KPMG, which is leading the technical analysis, disclosed that the review will involve extensive data evaluation, stakeholder consultations, and international benchmarking. The consulting firm intends to identify gaps within the current regulatory framework and determine whether periodic tariff reviews should become a more structured part of industry regulation.
KPMG Partner and Head of Tax, Wole Obayomi, stressed the importance of industry participation throughout the process. According to him, meaningful input from operators and other stakeholders will be crucial in identifying practical solutions to existing challenges and developing a pricing model that supports long-term industry growth.
As part of the review process, telecom operators will be required to provide detailed financial and operational information, including revenue performance, profitability, market share, capital investments, service quality metrics, and customer usage trends. The NCC believes this data will provide a clearer picture of how current pricing structures affect both operators and consumers.
The review will also include technical sessions involving mobile network operators, mobile virtual network operators, international carriers, interconnect exchange providers, and clearing houses. Industry experts from finance, technology, and commercial departments are expected to contribute insights throughout the engagement.
A key component of the exercise will be the comparison of Nigeria’s telecom pricing framework with those of other emerging and developed markets. The NCC and KPMG plan to benchmark Nigeria against countries such as South Africa, Kenya, Indonesia, and Malaysia, examining how similar economies have addressed pricing regulation while maintaining industry growth and consumer protection.
The findings from these international comparisons are expected to help shape a revised pricing structure that aligns with global best practices while addressing Nigeria’s unique market conditions.
The commission maintains that the ultimate objective is to establish a telecom pricing framework that promotes healthy competition, supports continued investment in network infrastructure, improves service quality, and protects consumer interests.
NCC Director of Public Affairs, Nnenna Ukoha, noted that the review will have implications across the entire telecommunications ecosystem, affecting operators, investors, businesses, and millions of subscribers nationwide. She emphasized that mobile termination rates remain a fundamental factor influencing pricing dynamics and overall service delivery within the sector.
Ukoha further assured stakeholders that the NCC would continue to adopt its collaborative regulatory approach by incorporating feedback from all relevant parties. She urged operators to submit accurate and timely data, stressing that the success of the review depends on the quality of information provided.
As Nigeria’s digital economy continues to expand, industry observers view the review as a significant step toward ensuring that the country’s telecom regulatory framework remains responsive to technological innovation, market realities, and future growth opportunities.
The outcome of the exercise could shape the future of telecommunications pricing in Nigeria, influencing everything from network investments and service quality to the cost of voice and data services for millions of consumers across the country.
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