NCC Starts Review of Interconnection Tariffs
The Nigerian Communications Commission (NCC) has launched a review of interconnection rates for telecom operators, a move that could result in higher call and SMS charges for millions of subscribers nationwide.
Why the Review Is Necessary
The last comprehensive review of the Mobile Termination Rate (MTR) took place in 2018. Since then, the telecommunications landscape has changed dramatically.
Speaking at a stakeholders’ consultative forum in Lagos, KPMG partner Wole Adenekan highlighted several drivers behind the review:
- Significant depreciation of the naira
- Rising inflation and energy costs
- Increasing expenses for telecom equipment
- The commercial rollout of 5G technology
- Growing adoption of AI and IoT solutions
- Shifting usage patterns and competition from Over‑the‑Top (OTT) services
Adenekan warned that rates set too low could discourage investment in network infrastructure and weaken industry sustainability, while excessively high rates might ultimately be passed on to consumers.
Potential Impact on Consumers
Current interconnection rates range from ₦3.90 to ₦4.70 per minute. Any upward adjustment could translate into higher retail prices for voice and SMS services.
The NCC, however, insists the review is intended to ensure tariffs remain fair, reasonable, and reflective of prevailing market realities, protecting consumer interests while supporting a competitive playing field.
Regulatory Context
Omotayo Mohammed, Head of the Competition and Tariff Unit at the NCC’s Policy Department, described the exercise as a major regulatory intervention to align the commission’s framework with rapid industry developments.
She noted that the existing national interconnection rate regime originated from the Interconnection Rate Determination of June 1, 2018, later adjusted in September 2022 for international termination rates. The domestic MTR framework, however, has remained unchanged since 2018.
Mohammed emphasized that periodic reviews are essential to keep regulatory measures effective in a fast‑moving market, especially given the substantial macroeconomic shifts and technological advances experienced over the past eight years.
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