The Nigerian Communications Commission (NCC) has launched a comprehensive review of the nation’s mobile interconnection rates.
The Nigerian Communications Commission (NCC) has launched a comprehensive review of the nation’s mobile interconnection rates, noting that the rapid rise of 5G networks, Artificial Intelligence (AI), and Internet of Things (IoT) technologies have completely changed the economics of telecom infrastructure.
The regulatory review was announced on Tuesday during the Industry Stakeholder Consultative Forum on the Determination of Mobile Termination Rates in Nigeria held in Lagos, where the fees telecom operators charge each other to terminate calls on their respective networks play a foundational role in determining wholesale cost structures and retail pricing for consumers across the country.
The telecom regulator emphasized that current pricing frameworks are failing to keep pace with modern technical breakthroughs. Since the last major regulatory rate determination in 2018, Nigeria’s telecom landscape has entered a brand new era characterized by high-speed data delivery and intelligent network automation.
Speaking at the forum, Omotayo Muhammed, Director of Competition and Tariff at the NCC, explained that emerging technologies are drastically modifying how data and voice traffic flow across networks. The widespread deployment of 5G networks, the integration of automated AI processes inside carrier networks, and the expansion of smart IoT devices have fundamentally shifted operator cost structures.
Furthermore, the recent entry of Mobile Virtual Network Operators (MVNOs) and the massive growth of Over-The-Top (OTT) communication platforms (like WhatsApp and Telegram) have made traditional, voice-heavy interconnection rules obsolete.
The MTR review is not an isolated policy change; it forms part of a broader tariff restructuring package being driven by the commission to ensure long-term market stability. Inbound international call routing costs will be adjusted to better manage cross-border traffic balances and safeguard foreign exchange inflows.
The regulator recognize that banking apps, fintech platforms, and government agencies rely heavily on telecom networks for mobile banking and transaction alerts, the NCC is restructuring these enterprise channels to ensure affordable access and also as new virtual operators roll out services across the country, the commission will establish clear, transparent wholesale interconnection rules to prevent anti -competitive behavior from large, infrastructure-heavy carriers.
To build a forward-looking, cost-reflective tariff framework, the NCC has partnered with professional services consulting firm KPMG.
According to Wole Adeloku, a partner at KPMG, the research and modeling process will rely heavily on robust data inputs from local service providers, extensive stakeholder feedback, and benchmarking exercises against other advanced telecom jurisdictions. The resulting cost model aims to strike an accurate balance between encouraging telecom operator profitability and protecting consumer welfare.
By implementing these evidence-based reforms, the NCC intends to create a highly predictable, transparent pricing ecosystem. The commission believes that aligning carrier tariffs with modern network realities will stimulate deep infrastructure investments, encourage healthy market competition, and support Nigeria’s ongoing digital transformation goals.
