The Nigerian Communications Commission NCC, has commenced a comprehensive review of Mobile Termination Rates MTR. This marks the first major reassessment of the country’s wholesale telecom pricing framework since 2018 when the current rates were introduced.

The MTRs, are wholesale charges paid by one telecommunications operator to another for terminating calls on a different network.

This review process, which underscores the Commission’s commitment to ensuring that interconnection pricing remains aligned with the country’s evolving economic, technological, and competitive realities, was officially launched during a stakeholders’ consultative forum held in Lagos, tagged: ‘Understanding Mobile Termination Rates.’

The MTRs in Nigeria are regulated by the NCC to promote fair competition, prevent anti-competitive practices, encourage investment, and protect consumers from excessive retail pricing.

According to the NCC, MTRs serve as a critical component of the wholesale interconnection framework and have a direct impact on retail tariffs, network investment, service quality, and the long-term sustainability of the telecommunications sector.

Existing rates no longer reflect current market realities

Head of Competition and Tariff of the NCC, Mrs. Omotayo Mohammed, while speaking at the forum, disclosed that the current termination rates no longer adequately reflect prevailing industry conditions.

The existing rates are:

Generic operators: ₦3.90 per minute

New entrants: ₦4.70 per minute (asymmetric rate designed to support market entry)

Last review conducted: 2018

According to Mohammed, these rates have remained unchanged despite significant shifts in operating costs, technological advancement, and market structure.

She said: “Outdated termination rates could create competitive distortions, discourage investment, and potentially increase costs for consumers.

These rates have remained unchanged for nearly a decade despite significant changes in the operating environment.”

Key factors behind the review

The NCC is undertaking the review in partnership with KPMG Nigeria, citing several major developments that have transformed the telecommunications landscape since the last review.

Macroeconomic pressures

Nigeria’s economic environment has changed considerably, with naira depreciation, rising inflation, and escalating energy costs significantly affecting operators’ capital and operational expenditures.

Technological evolution

The rapid deployment of 5G networks, growing adoption of Artificial Intelligence AI, and expansion of Internet of Things IoT, services have altered network traffic patterns and cost structures beyond the assumptions used in the 2018 pricing model.

Market disruption

The increasing popularity of Over-The-Top OTT, communication platforms such as WhatsApp and Telegram, alongside the emergence of Mobile Virtual Network Operators (MVNOs), has fundamentally changed traditional voice traffic dynamics and interconnection patterns.

Scope of the MTR review

The review is being conducted under Sections 4, 96, 97, and 108 of the Nigerian Communications Act 2003, which empower the NCC to promote investment, ensure fair competition, and safeguard consumer interests.

Key areas under consideration include:

Development of a cost-reflective MTR framework across multiple technology generations and operator categories

Review of asymmetric pricing arrangements between dominant operators and new entrants

Creation of an interconnection pricing framework for Mobile Virtual Network Operators (MVNOs)

Assessment of International Termination Rates ITR, to combat grey-route traffic

Review of USSD pricing and Application-to-Person A2P, SMS services, which have become increasingly important to Nigeria’s digital economy

The consultancy exercise is expected to run for approximately four months and will follow an evidence-based and highly consultative approach.

Expected impact on competition and consumers

According to the Commission, the review is designed to deliver several benefits across the telecommunications ecosystem.

These include:

Promoting Fair Competition

Ensuring that dominant operators do not use wholesale pricing advantages to suppress competition or limit market entry.

Protecting Consumers

Reducing wholesale pricing distortions that could ultimately translate into higher retail charges for subscribers.

Encouraging Infrastructure Investment

Creating a cost-reflective framework that enables operators to recover investments while continuing to expand network coverage and improve service quality.

Supporting Digital Economy Growth

Enhancing affordability and connectivity while strengthening digital financial services, enterprise communications, and broader digital inclusion initiatives.

Mohammed assured stakeholders that the NCC would maintain transparency throughout the process by making available its methodology, assumptions, and cost model parameters.

Stakeholder collaboration crucial to success

Closing the forum, the NCC’s Director, Public Affairs, Mrs. Nnenna Ukoha, described the MTR review as one of the Commission’s most significant public consultations due to its far-reaching implications for operators, investors, consumers, and the wider digital economy.

She commended industry stakeholders for their active participation and encouraged continued submissions of data, perspectives, and recommendations throughout the review process.

Mrs. Ukoha insists that the complexity of MTR determination underscores the need for sustained stakeholder collaboration as the Commission works toward a resilient, inclusive, and future-ready telecomm sector.

Meanwhile, industry stakeholders expect that the outcome of the review would shape the country’s telecommunications pricing framework for years to come. This is given that the emerging framework would influence competition, investment decisions, consumer affordability, and the overall trajectory of the country’s digital transformation agenda.