NCC Reviews Call and SMS Charges: Telecom Costs May Rise in Nigeria

NCC Reviews Call and SMS Charges: Telecom Costs May Rise in Nigeria

The Nigerian Communications Commission (NCC) has begun a major review of interconnection rates for voice calls and SMS services, a development that could eventually lead to higher communication costs for millions of telecom users in Nigeria.

This marks the first review of the Mobile Termination Rate (MTR) framework in eight years. Under the current system, telecom operators pay between ₦3.90 and ₦4.70 per minute to terminate calls on rival networks.

At a stakeholders’ forum in Lagos, KPMG partner Wole Adenekan explained that the review is necessary due to significant changes in the economy and telecom sector since 2018. He cited factors such as naira depreciation, rising inflation, increased energy costs, and higher expenses for network infrastructure and equipment.

According to him, keeping termination rates artificially low could discourage investment in the industry, while a cost-reflective pricing structure would promote efficiency and fair competition among operators.

However, he warned that any increase in interconnection rates could be transferred to consumers through higher call and SMS charges.

He also noted that emerging technologies like 5G, Artificial Intelligence (AI), Internet of Things (IoT), and competition from internet-based calling services are reshaping the telecom landscape and making a review necessary.

The NCC’s Head of Competition and Tariff Unit, Omotayo Mohammed, described the exercise as a key regulatory step aimed at aligning telecom pricing with current economic realities. She added that the commission is also evaluating retail pricing and market balance to protect consumers while ensuring industry sustainability.

Industry observers believe the outcome of the review could significantly impact operators, investors, and subscribers as Nigeria’s telecom sector continues to face rising operational pressures.

While no new tariffs have been announced yet, Nigerians are watching closely as the NCC consultation process continues and decisions are expected in the coming months.