The Nigerian Communications Commission (NCC), working with consultancy firm KPMG, has begun a major review of Nigeria’s telecom interconnection pricing system, marking the first comprehensive reassessment in nearly a decade.
The exercise focuses on Mobile Termination Rates (MTRs) — the fees telecom operators pay each other to complete calls across different networks. These rates play a key role in determining competition, service quality, and consumer pricing.
According to the NCC, the existing pricing framework, last reviewed in 2018 and adjusted in 2022, is now outdated due to major changes in the telecom industry. These include the rollout of 5G services, the growth of data-driven communication, the emergence of mobile virtual network operators, and broader shifts in market structure.
The regulator also pointed to economic pressures such as inflation and currency depreciation, which have increased operating costs for telecom companies.
NCC officials say the review is not routine but a structural reform aimed at aligning regulation with today’s rapidly evolving telecom environment. It is being conducted under Section 108 of the Nigerian Communications Act to ensure pricing remains fair, competitive, and cost-reflective.
KPMG said the process will combine data analysis, stakeholder consultations, and international benchmarking using countries like South Africa, Kenya, Indonesia, and Malaysia as reference points.
As part of the exercise, operators will be required to submit detailed financial data covering revenue, costs, investment, service quality, and market performance. The goal is to assess whether current pricing rules still reflect industry realities.
The review will also involve technical engagements with mobile operators, MVNOs, and international carriers, while considering how new telecom services fit into existing regulatory definitions.
Ultimately, the NCC says the aim is to design a more transparent and sustainable pricing framework that supports investment, improves service quality, and protects consumers in Nigeria’s telecom sector.