NCC Begins Major Review of Call Tariffs Framework, Costs May Rise for Users


 

By Abdulahi Musa 


The Nigerian Communications Commission (NCC) has begun a comprehensive review of interconnection rates charged by telecom operators, a process that could eventually influence the cost of calls and data services across the country.


The review, which marks the first of its kind in eight years, was officially launched at a stakeholder forum in Lagos in collaboration with global consulting firm KPMG, which has been engaged to handle the technical assessment.


Interconnection rates, also known as Mobile Termination Rates, are the wholesale charges paid by one network to another when calls or text messages are completed across different operators. These rates have remained unchanged since 2018, fixed at ₦3.90 per minute for established operators and ₦4.70 per minute for newer entrants.


According to the NCC, the long-standing rates no longer reflect current economic realities. Since 2018, Nigeria has experienced significant inflation, currency depreciation, and rising operational costs for telecom operators, particularly due to heavy reliance on diesel-powered infrastructure caused by unstable electricity supply.


The sector has also evolved, with the rollout of 5G services, increased data consumption, and the growing dominance of internet-based communication platforms reducing traditional voice traffic. The entry of mobile virtual network operators has further complicated the existing pricing structure.


KPMG is expected to develop a new cost framework using industry benchmarks and models such as the Long Run Incremental Cost Plus methodology. The process will involve consultations with telecom operators, consumer groups, and other stakeholders and is expected to last between four and nine months before a final decision is reached.


The NCC noted that while any upward adjustment in interconnection rates could improve operators’ ability to invest in network expansion, it may also lead to higher retail prices for consumers, especially following earlier tariff adjustments in 2025.


The regulator said it aims to strike a balance between ensuring fair competition, encouraging investment in infrastructure, and protecting consumers from excessive costs.


The outcome of the review is expected to have significant implications for Nigeria’s telecommunications industry, potentially shaping the cost and quality of digital services for years to come.

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