The Nigerian Communications Commission (NCC), in collaboration with consultancy firm KPMG, has commenced a comprehensive review of telecom interconnection pricing in Nigeria, marking the first major reassessment of the sector’s tariff structure in nearly a decade.
The review, which began on Tuesday in Lagos at a Mobile Termination Rate (MTR) stakeholder forum, brought together regulators, telecom operators, and industry stakeholders to examine wholesale pricing rules that determine payments between networks for completing voice calls.
Mobile Termination Rates are regulated fees paid by one network operator to another to complete calls across different networks. They play a key role in shaping competition, investment decisions, and retail pricing across the telecom sector.
According to the NCC, the existing pricing framework—last reviewed in 2018 and adjusted in 2022—has become outdated due to major structural changes in the industry, including the rollout of 5G technology, the rapid expansion of data-driven services, and the emergence of mobile virtual network operators.
The regulator also cited broader economic challenges such as inflation and currency depreciation, which have significantly affected operators’ cost structures.
Speaking at the forum, the Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the exercise goes beyond a routine tariff review, stressing the need for regulatory frameworks to keep pace with a fast-evolving telecom environment.
He noted that the market has changed significantly since the last determination, both in terms of technology and structure, adding that new service models now require updated regulatory attention.
“For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it,” Mohammed said, explaining that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain cost-reflective and non-discriminatory.
KPMG, which is supporting the exercise, said the review will combine data analysis, stakeholder consultations, and international benchmarking to develop a revised pricing framework.
Partner and Head of Tax at KPMG, Wole Obayomi, said the study aims to identify gaps in the current system and determine whether a structured review cycle should be introduced going forward.
He emphasized the importance of industry participation, noting that stakeholder input would be critical in shaping practical solutions.
The review will assess pricing practices across both wholesale and retail segments and evaluate whether emerging services are adequately captured under existing regulatory definitions.
Over the past decade, Nigeria’s telecom industry has evolved significantly, introducing new business models that are not fully reflected in the current regulatory framework.
The study will also examine the sustainability of existing tariff structures, with attention to investment capacity, service quality, and consumer affordability.
As part of the process, the NCC will require operators to submit detailed data covering revenue, costs, profitability, market share, capital expenditure, service quality, and usage trends over several years.
The engagement will also include technical sessions with mobile network operators, mobile virtual network operators, international carriers, clearing houses, and interconnect exchange providers.
KPMG said the data-driven approach is aimed at providing a clearer picture of industry performance and the cumulative impact of existing pricing rules.
The review will further benchmark Nigeria’s telecom pricing framework against countries such as South Africa, Kenya, Indonesia, and Malaysia.
The NCC said the exercise is designed to ensure a transparent, competitive, and investment-friendly pricing system that supports both industry growth and consumer protection.
NCC Director of Public Affairs, Nnenna Ukoha, said the review cuts across the entire telecom value chain, including operators, consumers, and investors, noting that termination rates remain central to competition and pricing dynamics.
She added that the commission will adopt a co-creation approach, incorporating stakeholder feedback throughout the process, and urged operators to comply with data submission timelines for the exercise to achieve its objectives.
