The Nigerian Communications Commission (NCC), in collaboration with consulting firm KPMG, has commenced a comprehensive review of telecom interconnection pricing, marking the first major reassessment of Nigeria’s telecommunications tariff framework in nearly a decade.
The review process was launched at a Mobile Termination Rate (MTR) stakeholder forum held in Lagos on Tuesday, bringing together regulators, telecom operators, and other industry stakeholders to evaluate wholesale pricing rules that govern payments between networks for completing voice calls.
Mobile Termination Rates are regulated charges paid by one telecommunications operator to another for terminating calls on its network. The rates play a critical role in shaping competition, investment decisions, and consumer pricing across the sector.
According to the NCC, the current framework, which was last established in 2018 and revised in 2022, no longer reflects the realities of the rapidly evolving telecommunications landscape. The commission cited developments such as the rollout of 5G technology, the growth of data-driven services, and the emergence of Mobile Virtual Network Operators (MVNOs) as key factors driving the review.
The regulator also highlighted broader economic challenges, including inflation and currency depreciation, which have significantly increased operational costs for telecom service providers.
Speaking at the forum, the Head of the NCC’s Competition and Tariff Unit, Omotayo Mohammed, described the exercise as more than a routine tariff review, emphasizing the need for regulations to keep pace with industry transformation.
He noted that the telecommunications market has undergone substantial changes in both technology deployment and market structure since the last pricing determination, creating the need for updated regulatory frameworks that address new services and business models.
Mohammed explained that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain fair, cost-reflective, and non-discriminatory.
Representing KPMG, Partner and Head of Tax, Wole Obayomi, said the study would combine data analysis, stakeholder engagement, and international benchmarking to identify gaps within the existing pricing regime and determine whether a structured review cycle should be introduced.
He stressed the importance of industry participation in developing practical recommendations that address emerging challenges and strengthen the regulatory framework.
As part of the exercise, the NCC and KPMG will evaluate pricing practices across both wholesale and retail segments, assess whether current regulations adequately capture emerging telecom services, and examine the long-term sustainability of existing tariff structures.
The review is expected to focus on balancing investment incentives, service quality, market competition, and consumer affordability as Nigeria’s telecommunications sector continues to expand and evolve.
