The Nigerian Communications Commission (NCC) has begun a major review of interconnection charges in the telecommunications sector, a move that could influence competition, investment, and future pricing within Nigeria’s telecom industry.
The review focuses on Mobile Termination Rates (MTRs), which are the fees telecom operators pay one another for completing calls across different networks. Although subscribers do not directly pay these charges, industry experts say they play an important role in determining call and SMS prices, market competition, and investment decisions.
Speaking during a stakeholders’ consultation forum in Lagos, the Head of Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the review is necessary to ensure that existing regulations keep pace with changes in the telecommunications landscape.
According to her, the telecom industry has evolved significantly in recent years, making it important for regulatory policies to reflect current market realities. She explained that the review is being carried out under the provisions of the Nigerian Communications Act to ensure that interconnection rates remain fair, transparent, and cost-reflective for all operators.
The current interconnection framework was introduced in 2018, while the most recent adjustment in 2022 focused mainly on international termination rates. Since then, telecom operators have faced rising operational costs driven by inflation, exchange rate fluctuations, increasing energy expenses, and large investments in advanced technologies such as 5G networks.
Industry stakeholders believe these economic changes have significantly altered the cost structure of telecommunications companies, making a fresh review necessary.
A partner at KPMG, Wole Adenekan, noted that setting the right interconnection rates is critical for maintaining healthy competition in the industry. He explained that if rates are too high, smaller operators may struggle to compete with larger players, while rates that are too low could discourage investment in network infrastructure.
According to Adenekan, a balanced and cost-reflective pricing structure helps create a level playing field where operators can compete fairly while continuing to invest in service improvements.
He also pointed out that the telecom industry has undergone major changes since the last review. Beyond inflation and currency depreciation, operators are adapting to emerging technologies such as artificial intelligence, the Internet of Things (IoT), and widespread 5G deployment. At the same time, competition from internet-based communication platforms has changed how telecom companies generate revenue.
Telecommunications operators have welcomed the review, describing it as a positive step toward ensuring the long-term sustainability of the sector.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, said the industry has continued to attract significant investment despite economic challenges.
According to him, telecom operators invested approximately N2.13 trillion in capital projects during 2025, while planned investments for 2026 are estimated at N1.86 trillion. He noted that recent tariff adjustments have helped operators maintain investment levels needed to expand network coverage and improve service quality.
As part of the review process, telecom companies will be required to submit detailed financial and operational data. This includes information on revenues, operating costs, profitability, capital expenditure, subscriber usage patterns, and service quality standards.
The NCC, working alongside KPMG, will also compare Nigeria’s interconnection framework with those of countries such as South Africa, Kenya, Indonesia, and Malaysia before making final recommendations.
Industry observers say the outcome of the review could have a significant impact on the future of Nigeria’s telecommunications sector. A well-balanced interconnection regime could encourage greater investment, improve competition, and support the expansion of digital infrastructure across the country.
For consumers, the review may eventually influence call and SMS pricing, while for operators it could determine how effectively they can sustain growth and maintain service quality in an increasingly competitive market.
As Nigeria’s digital economy continues to expand, stakeholders believe that a fair and transparent interconnection system will remain essential for supporting innovation, improving connectivity, and ensuring long-term industry growth.
