The Nigerian Communications Commission (NCC) has commenced a comprehensive review of telecom interconnection pricing in partnership with KPMG, marking the first major reassessment of the sector’s tariff framework in nearly a decade.
The review was formally launched on Tuesday in Lagos during a Mobile Termination Rate (MTR) stakeholder forum attended by regulators, telecommunications operators and other industry stakeholders.
Mobile Termination Rates are the regulated charges telecom operators pay one another for completing calls across different networks. The rates play a critical role in determining competition, investment decisions and retail pricing within the telecommunications industry.
According to the NCC, the current framework, introduced in 2018 and last adjusted in 2022, no longer reflects prevailing market realities due to significant changes in technology, business models and economic conditions.
The commission noted that the rollout of 5G technology, the rapid expansion of data-driven services and the emergence of mobile virtual network operators (MVNOs) have transformed Nigeria’s telecommunications landscape. It also cited inflation and currency depreciation as factors that have significantly increased operational costs for service providers.
Speaking at the forum, the Head of Competition and Tariff at the NCC, Omotayo Mohammed, said the exercise goes beyond a routine tariff review and is intended to ensure that regulatory frameworks remain aligned with ongoing developments in the industry.
He explained that the telecommunications market has undergone major changes since the last tariff 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.
He added that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure that telecom tariffs remain cost-reflective, fair and non-discriminatory.
KPMG, which is leading the consultancy component of the review, said the exercise will combine data analysis, stakeholder engagement and international benchmarking to develop recommendations for a revised pricing framework.
KPMG Partner and Head of Tax, Wole Obayomi, stated that the review aims to identify gaps in the current pricing regime and determine 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.
As part of the process, the NCC and KPMG will assess pricing practices across wholesale and retail market segments, evaluate emerging telecom services and determine whether they are adequately covered by existing regulations.
The review will also examine the sustainability of current tariff structures, focusing on investment capacity, service quality and consumer affordability.
Telecom operators will be required to submit detailed financial and operational data, including revenue, costs, profitability, market share, capital expenditure, service quality indicators and usage trends spanning several years.
According to KPMG, the information will provide deeper insights into industry performance and help evaluate the long-term impact of existing pricing regulations.
The engagement process will involve consultations with mobile network operators, mobile virtual network operators, international carriers, clearing houses and interconnect exchange providers.
In addition, the NCC and KPMG will benchmark Nigeria’s telecom pricing framework against those of peer markets such as South Africa and Kenya, as well as emerging economies including Indonesia and Malaysia, to identify global best practices and guide future regulatory reforms.
