Nigeria's telecommunications sector is set for a significant regulatory reset as the Nigerian Communications Commission (NCC) begins a comprehensive review of interconnection pricing, marking the first major reassessment of the framework in nearly a decade.
The exercise, being conducted in partnership with global consultancy KPMG, officially commenced at a Mobile Termination Rate (MTR) stakeholder forum in Lagos on Tuesday. The review is expected to shape the future of wholesale telecom pricing and influence how operators compete, invest, and deliver services to millions of subscribers across the country.
Mobile Termination Rates are the charges telecom operators pay one another to complete calls across different networks. While largely invisible to consumers, these fees play a crucial role in determining retail pricing structures, market competitiveness, and the financial sustainability of operators.
According to the NCC, the existing framework, which was established in 2018 and partially updated in 2022, no longer adequately reflects the realities of today's telecom market.
Over the past several years, the sector has undergone substantial transformation, driven by the deployment of 5G technology, the rapid growth of data-centric services, and the emergence of Mobile Virtual Network Operators (MVNOs). At the same time, economic pressures such as inflation and the depreciation of the naira have significantly increased operating costs for service providers.
Industry Evolution Driving Regulatory Changes
Speaking at the forum, the Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the exercise represents more than a routine review of pricing regulations.
He noted that both technology and market structures have changed considerably since the last tariff determination, creating the need for updated regulatory approaches that can accommodate emerging business models and service offerings.
"For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it," Mohammed said.
He explained that the review is being undertaken under Section 108 of the Nigerian Communications Act 2003, which mandates the commission to ensure that tariffs remain fair, cost-reflective, transparent, and non-discriminatory.
According to Mohammed, the increasing complexity of the telecom ecosystem means that regulatory frameworks must keep pace with innovation while ensuring a level playing field for all participants.
KPMG to Lead Data-Driven Assessment
KPMG, which is serving as the commission's technical consultant, said the review will combine extensive data analysis, stakeholder engagement, and international benchmarking to develop recommendations for a modernized pricing framework.
The firm's Partner and Head of Tax, Wole Obayomi, stated that the study aims to identify gaps within the current regime and determine whether a more structured review cycle should be introduced to prevent future regulatory lag.
"It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls," Obayomi said.
He stressed that meaningful stakeholder participation will be essential to ensuring that any proposed reforms accurately reflect operational realities across the sector.
Focus on Sustainability, Competition and Consumer Interests
As part of the review, the NCC and KPMG will examine pricing structures across both wholesale and retail market segments.
The exercise will assess whether existing regulatory definitions adequately capture newer telecom services and business models that have emerged over the last decade.
Particular attention will be given to the sustainability of current tariff structures, including their impact on network investment, service quality, profitability, and consumer affordability.
Industry analysts note that balancing these competing priorities remains one of the biggest challenges facing telecom regulators globally. While operators require sufficient revenues to expand infrastructure and improve service delivery, regulators must also ensure consumers continue to enjoy affordable access to communications services.
To support the review, operators will be required to submit extensive operational and financial data, including information on revenues, costs, profitability, market share, capital expenditure, quality-of-service indicators, and traffic trends spanning multiple years.
According to KPMG, the data collection process will provide a clearer understanding of how current pricing regulations have shaped industry performance over time.
Stakeholder Engagement at the Core of Review
The consultation process will involve a broad range of industry participants, including mobile network operators, mobile virtual network operators, international carriers, clearing houses, and interconnect exchange providers.
Technical, commercial, and finance teams from participating organizations are expected to engage directly with regulators and consultants through a series of bilateral sessions.
The NCC said this collaborative approach aligns with its broader regulatory philosophy of co-creation, where industry stakeholders contribute to policy development before major decisions are implemented.
International Benchmarking to Guide Reforms
To ensure that any revised framework reflects global best practices, the review will compare Nigeria's telecom pricing structure with those of several peer markets.
Among the countries selected for benchmarking are South Africa and Kenya, two of Africa's most developed telecommunications markets, as well as Indonesia and Malaysia, which share certain economic and regulatory characteristics with Nigeria.
Consultants said the selected jurisdictions were chosen because of similarities in market conditions, macroeconomic challenges, and regulatory responses to sector growth.
Insights from these countries are expected to help shape recommendations that are both internationally competitive and locally relevant.
Building a Future-Ready Telecom Industry
The NCC believes the review will ultimately strengthen transparency, promote fair competition, and create a pricing environment capable of supporting continued investment in network infrastructure.
For consumers, the outcome could influence future service quality, network expansion, and pricing strategies across the industry.
Speaking on the broader significance of the exercise, NCC Director of Public Affairs, Nnenna Ukoha, said the review affects every part of the telecommunications value chain.
She noted that termination rates remain a critical component of market dynamics because they directly influence competition, investment decisions, and service outcomes.
Ukoha reiterated the commission's commitment to incorporating stakeholder feedback throughout the process and urged operators to submit accurate and timely data to ensure the success of the exercise.
As Nigeria's digital economy continues to expand, industry stakeholders will be closely watching the outcome of the review, which could redefine how telecom operators interact, compete, and invest in one of Africa's largest telecommunications markets.