The Nigerian Communications Commission (NCC) has launched a consultancy study aimed at reviewing Mobile Termination Rates (MTR) in Nigeria, describing the initiative as a key step toward ensuring telecom regulations reflect current market realities.
At a Stakeholders’ Consultative Forum on the review process, the Head of the Competition and Tariff Unit in the NCC’s Policy, Competition and Economic Analysis Department said the exercise represents a major effort to build “an inclusive, transparent, and dynamic telecommunications sector.”
He explained that the forum was organised to engage industry stakeholders on the scope of the consultancy, including its methodology, approach, and timeline, as the commission begins the data collection phase.
According to the NCC, the review goes beyond routine regulatory updates, describing it as a broader economic intervention designed to align regulatory frameworks with rapid changes in the telecom industry.
The current interconnection rate structure was established in 2018, with an amendment to the Mobile International Termination Rate introduced in 2022. Since then, the NCC noted that the sector has evolved significantly, driven by network expansion, the rollout of 5G technology, the arrival of Mobile Virtual Network Operators (MVNOs), and broader economic shifts.
The commission also pointed to inflation and exchange rate fluctuations as factors that have increased the cost of providing telecom services in the country.
It stressed that regulation must evolve alongside the industry, citing provisions of the Nigerian Communications Act 2003, which require tariffs to remain “reasonable, cost-reflective, and non-discriminatory.”
The NCC said the study will focus on three main areas: developing an updated cost model for termination rates, reviewing retail pricing and asymmetry frameworks to safeguard consumers, and designing a structure to integrate emerging operators like MVNOs into the national network system.
It also emphasised that the accuracy of data provided by telecom operators will be critical to the success of the exercise.
Officials noted that consultants from KPMG will work with industry stakeholders in the coming weeks to gather and validate relevant data for the study.
The commission urged operators to fully participate, describing the process as a collective effort to strengthen competition, attract investment, and ensure long-term stability in the sector.
