NCC, KPMG begin review of Nigeria’s mobile termination rates with industry input

The Nigerian Communications Commission (NCC) has commenced a consultancy study for the determination of Mobile Termination Rates (MTR) in Nigeria, describing the exercise as a critical intervention aimed at aligning telecommunications regulation with evolving market realities. Speaking at the Stakeholders’ Consultative Forum on the Determination of Mobile Termination Rates in Nigeria, the Head of the […] NCC begins review of mobile termination rates, seeks industry input

The Nigerian Communications Commission (NCC), in partnership with consultancy firm KPMG, has commenced a comprehensive review of telecom interconnection pricing, the first major reassessment of the sector’s tariff framework in nearly a decade.The exercise was formally launched at a Mobile Termination Rate Stakeholder Forum in Lagos on Tuesday, bringing together regulators, operators, and industry players to evaluate wholesale pricing rules that govern payments between networks for completing voice calls.Why the Review MattersMobile Termination Rates (MTRs) are regulated fees paid by one operator to another to complete calls across networks.They directly influence competition, investment, and retail pricing in the telecom sector.The current framework, last set in 2018 and adjusted in 2022, has been overtaken by market changes including:The rollout of 5G networksExpansion of data-driven servicesEntry of mobile virtual network operators (MVNOs)Rising macroeconomic pressures such as inflation and currency depreciation.NCC’s PositionOmotayo Mohammed, Head of the Competition and Tariff Unit at NCC, said the review goes beyond routine adjustments, stressing the need to align regulation with a rapidly evolving industry.“For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it,” he noted, adding that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain cost-reflective and non-discriminatory.KPMG explained that the study will combine data analysis, stakeholder consultations, and international benchmarking to identify gaps in the current regime.Partner Oluwole Adelokun said industry input will be critical:“It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls.”Operators will be required to submit detailed financial and operational data, including revenue, costs, profitability, market share, capital expenditure, service quality, and usage trends.The review will benchmark Nigeria’s framework against peer markets such as South Africa, Kenya, Indonesia, and Malaysia.Findings will inform recommendations for a revised pricing regime that is transparent, competitive, and capable of sustaining investment in infrastructure and service quality.NCC’s Director of Public Affairs, Nnenna Ukoha, emphasized that termination rates remain central to pricing dynamics, competition, and service outcomes, urging operators to provide timely and accurate data to ensure the effectiveness of the process.