The Nigerian Communications Commission has commenced a comprehensive reassessment of mobile termination rates, marking the first review since the current tariffs were established in 2018.
The regulatory body’s Head of Competition and Tariff, Omotayo Mohammed, unveiled the initiative on Tuesday in Lagos during a stakeholder engagement where consultancy documents were presented for deliberation.
Mobile termination rates—the wholesale per-minute charges operators pay one another to complete calls on competing networks—play a pivotal role in shaping market competition and consumer pricing across Nigeria’s telecommunications landscape.
Mohammed emphasised the urgency of the review, noting that the existing rates no longer reflect current economic and operational realities within the industry.
“The foundation of wholesale interconnection affects every stakeholder in this room,” she stated. “Misaligned termination rates can enable dominant operators to foreclose smaller competitors, deter infrastructure investment and ultimately burden consumers through inflated retail prices.”
The current MTR stands at N3.90 per minute for generic operators and N4.70 per minute for new entrants—figures that have remained static since their introduction in 2018.
However, significant economic shifts, including naira depreciation, escalating inflation and surging energy costs, have fundamentally altered operators’ cost structures. Technological advancements, particularly the rollout of 5G networks, artificial intelligence-driven services and Internet of Things applications, have transformed network usage patterns beyond the scope of the 2018 cost model.
Additionally, over-the-top platforms such as WhatsApp and Telegram are increasingly handling voice and messaging traffic, diminishing reliance on traditional interconnection services.
The commission has engaged KPMG to conduct the consultancy and stakeholder engagement process, which is expected to span four months. The study will also address Unstructured Supplementary Service Data services and Application-to-Person Short Message Service—both of which have grown increasingly vital in the digital economy.
The review is being conducted in accordance with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which mandate the commission to promote investment, protect consumers and ensure fair competition.
The study will establish a cost-reflective MTR framework across different technology generations, operator categories and clearing house arrangements. It will also review international termination rates to address grey-route traffic concerns, create a pricing framework for Mobile Virtual Network Operators and assess the current asymmetric rate structure between large and new-entrant operators.
“The consultancy adopts an evidence-based and consultative approach,” Mohammed said. “Stakeholders will have opportunities to submit their views and validate assumptions before any determination is made.”
The review is expected to support retail affordability, improve access to digital financial services and enable operators to recover costs in line with current capital and operational expenditure realities. Transparent and cost-reflective rates would encourage infrastructure investment and enhance investor confidence in Nigeria’s digital economy.
Mohammed assured stakeholders that the NCC would make its methodology, key assumptions and cost model parameters available for review throughout the process to ensure transparency.
NCC Director of Public Affairs, Nnenna Ukoha, described the forum as one of the commission’s most significant public-facing engagements due to its impact on the entire telecommunications value chain.
“Mobile termination rates remain central to pricing structures, competition, service quality and consumer experience, making broad stakeholder participation essential to the determination process,” she said.
“We are particularly encouraged by the rapt attention, intellectual rigour and keen interest demonstrated by participants throughout today’s session. This active engagement reflects not only the relevance of the issues discussed but also a shared commitment to the sustainable growth and development of Nigeria’s telecommunications sector.”
Ukoha reiterated that the consultation window remains open and encouraged stakeholders to submit additional inputs, data and perspectives to support a balanced, forward-looking and sustainable outcome for the industry.
The commission reaffirmed its commitment to embracing collaboration and incorporating stakeholder feedback into its regulatory frameworks while working towards a resilient, inclusive and future-ready telecommunications sector.