The Nigerian Communications Commission (NCC) has officially partnered with consultancy firm KPMG to launch a comprehensive review of telecom interconnection pricing and tariff frameworks. This initiative, which began at a stakeholder forum in Lagos, marks the first major reassessment of the sector's pricing regulations in nearly a decade.
The review is driven by significant structural changes in the market, including the widespread deployment of 5G, the rise of data-led services, and the entry of new market participants such as mobile virtual network operators. Furthermore, the NCC identified macroeconomic challenges like currency depreciation and inflation as key factors that have altered the operational cost bases for telecom companies, necessitating a move toward more cost-reflective pricing models.
Omotayo Mohammed, Head of the Competition and Tariff Unit at the NCC, emphasized that this exercise is essential for aligning regulation with the rapidly evolving industry. He noted that the commission is operating under Section 108 of the Nigerian Communications Act 2003 to ensure that future tariffs remain non-discriminatory and sustainable. The project aims to identify gaps in existing rules and determine whether a more structured review cycle is necessary for the long-term health of the sector.
The methodology behind this study involves a combination of data analysis, extensive stakeholder consultation, and international benchmarking. KPMG plans to compare Nigeria’s regulatory framework against peer markets such as South Africa, Kenya, Indonesia, and Malaysia to incorporate global best practices. To facilitate this, the NCC is requiring operators to submit detailed multi-year financial and operational data, covering areas such as revenue, capital expenditure, and service quality trends.
Nnenna Ukoha, Director of Public Affairs at the NCC, stated that the review spans the entire telecom value chain and impacts operators, investors, and consumers alike. The commission plans to utilize a co-creation regulatory approach, integrating feedback from mobile network operators, international carriers, and other industry players. Ukoha urged all participants to comply with data submission timelines to ensure the final pricing framework is transparent, competitive, and supportive of continued infrastructure investment.
