Eight years. One set of prices. Nigeria’s telecom regulator says the math no longer adds up.
The Nigerian Communications Commission has commenced a comprehensive review of Mobile Termination Rates, the wholesale interconnection charges telecom operators pay one another to complete calls across different networks, marking the first major reassessment of this pricing framework since 2018. The review, launched through a stakeholders consultative forum in Lagos, could eventually influence retail call and SMS charges for Nigeria’s 185.7 million mobile subscribers.
Why the Review Is Happening Now
Related News
Speaking at the forum, Omotayo Mohammed, Head of Competition and Tariff at the NCC, explained that the existing rates, set at N3.90 per minute for established operators and N4.70 for newer entrants, no longer reflect current market realities. She noted that rising inflation, naira depreciation, increased energy costs, and the emergence of new technologies, including 5G, artificial intelligence, and internet of things applications, have fundamentally altered network economics since the last review.
KPMG, the consultancy firm engaged by the NCC to support the study, confirmed the review will examine multiple dimensions beyond simple voice termination rates, including USSD pricing, mobile virtual network operator interconnection arrangements, and application to person SMS pricing frameworks.
What This Could Mean for Consumers
Related News
Industry observers caution that any upward adjustment to interconnection rates could eventually translate into higher retail charges for calls and text messages. However, telecom operators have moved to reassure the public that this particular exercise focuses on wholesale pricing arrangements between operators rather than an immediate increase in consumer tariffs.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, clarified during a separate interview that the current review represents routine regulatory housekeeping rather than a direct precursor to consumer price hikes. Nevertheless, given the sector’s history of tariff adjustments following similar regulatory exercises, many Nigerians remain watchful.
A Sector Already Under Pressure
Nigeria’s telecom sector has weathered considerable economic turbulence in recent years. Total sector investment has grown from approximately $500 million at liberalisation in 2001 to more than $75.6 billion today, even as operators have absorbed rising operational costs throughout the period.
The review process is expected to last approximately four months, involving extensive industry consultation before any final determination is published. For now, consumers across MTN, Airtel, Glo, and 9mobile networks continue operating under existing rates, with any potential changes still several months away from implementation.
