The Nigerian Communications Commission (NCC), in collaboration with consultancy firm KPMG, has commenced a comprehensive review of telecom interconnection pricing in Nigeria, marking the first major reassessment of the sector’s tariff framework in nearly a decade.
The exercise, which began at a mobile termination rate stakeholder forum in Lagos on Tuesday, brought together regulators, telecom operators, and industry stakeholders to evaluate wholesale pricing structures that govern payments between networks for completing voice calls.
Mobile Termination Rates (MTRs) are regulated fees paid by one telecommunications operator to another to terminate calls across different networks. These rates play a critical role in shaping competition, investment decisions, and retail pricing for consumers.
According to the NCC, the current pricing framework—last reviewed in 2018 and adjusted in 2022—no longer reflects the realities of a rapidly changing telecommunications environment.
The regulator cited significant industry transformation, including the rollout of 5G networks, the expansion of data-driven services, the entry of mobile virtual network operators, and broader macroeconomic pressures such as currency depreciation and inflation, which have increased operational costs for service providers.
The Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the review goes beyond routine tariff adjustments and is aimed at aligning regulation with structural changes in the industry.
He noted that the telecom sector has evolved significantly since the last determination, both in technology deployment and market structure.
“For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it,” Mohammed said, adding that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain cost-reflective and non-discriminatory.
KPMG explained that the study will combine data analysis, stakeholder engagement, and international benchmarking to develop a revised pricing framework for the sector.
Partner and Head of Tax, Regulatory and People Services at KPMG, Wole Obayomi, said the process is designed to identify gaps in the existing framework and assess whether a structured review cycle should be introduced.
“It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls,” Obayomi said.
The review will examine pricing structures across wholesale and retail segments, as well as assess whether emerging services are adequately covered under existing regulatory definitions.
Over the past decade, the telecom industry has introduced new business models and service categories that are not fully reflected in current regulatory rules.
The study will also evaluate the sustainability of existing tariff structures, focusing on investment capacity, service quality, and consumer affordability.
Operators currently apply varying pricing models within regulatory limits, prompting the need for a deeper assessment of how these frameworks function in practice.
As part of the exercise, the NCC will require telecom operators to submit detailed financial and operational data, including revenue, costs, profitability, market share, capital expenditure, service quality, and usage trends spanning multiple years.
KPMG said the data will provide a clearer picture of industry performance and the cumulative impact of existing pricing rules on the sector.
The review process will also include technical engagement sessions with mobile network operators, mobile virtual network operators, international carriers, clearing houses, and interconnect exchange providers.
Industry stakeholders are expected to involve finance, technical, and commercial teams in the consultations.
In addition, the NCC and KPMG will benchmark Nigeria’s interconnection framework against peer markets such as South Africa and Kenya, as well as emerging economies including Indonesia and Malaysia.
The selection of comparator countries reflects similarities in macroeconomic conditions and regulatory responses to telecom sector development.
Findings from the benchmarking exercise are expected to inform recommendations for a revised pricing regime that balances domestic realities with international best practices.
The NCC said the review aims to establish a transparent, competitive, and investment-friendly pricing structure that supports network expansion and improved service quality.
NCC Director of Public Affairs, Nnenna Ukoha, said the review covers the entire telecom value chain, including operators, consumers, and investors, noting that termination rates remain central to pricing dynamics and market competition.
She added that the commission would integrate stakeholder feedback under its co-creation regulatory approach and urged operators to comply with data submission timelines, stressing that the effectiveness of the process depends on timely and accurate industry input.
