Telecommunications subscribers across Nigeria may soon see an increase in the cost of voice calls and text messages as the Nigerian Communications Commission (NCC) has commenced a long-awaited review of interconnection rates—eight years after the current pricing framework was introduced.
The move follows a stakeholders’ consultative forum held in Lagos on Tuesday, where regulators, telecom operators, and industry experts deliberated on setting a new Mobile Termination Rate (MTR).
The Mobile Termination Rate (MTR) is the wholesale fee one telecom operator pays another to complete calls across networks. It forms the backbone of communication between subscribers on different service providers.
Currently, domestic MTR ranges between ₦3.90 and ₦4.70 per minute. However, any upward review by the NCC could translate into higher retail charges for consumers, as operators typically pass on increased costs to end users.
At the forum, Wole Adenekan, a partner at KPMG, described the review as overdue, noting that the 2018 framework has become outdated due to significant economic and technological changes.
He explained that while a 2022 amendment addressed international rates, local interconnection pricing has remained unchanged despite:
Naira devaluation
Rising inflation
Increased energy and infrastructure costs
Expansion of 5G networks
Growing adoption of AI and Internet of Things (IoT)
Adenekan warned that maintaining artificially low rates could discourage investment in telecom infrastructure.
> “Rates that are too low fail to reflect the true cost of providing termination services and can deter investment,” he said.
He also pointed to the growing influence of over-the-top platforms such as WhatsApp and Telegram, which continue to erode traditional revenue streams from voice calls and SMS.
Omotayo Mohammed, Head of the Competition and Tariff Unit at the NCC, said the review is aimed at aligning regulatory frameworks with current market realities.
She emphasized that the Commission would balance industry sustainability with consumer protection, referencing its mandate under the Nigerian Communications Act (2003) to ensure tariffs remain fair and non-discriminatory.
“The years since 2018 have seen unprecedented changes in the telecom sector, including 5G deployment and the emergence of new players like Mobile Virtual Network Operators,” she noted.
Despite the economic justification for a potential tariff hike, concerns remain over persistent service delivery issues affecting millions of Nigerians.
Subscribers continue to face:
Dropped calls
Poor voice clarity
Network congestion
Unstable data services
Critics argue that any increase in tariffs should be tied to measurable improvements in Quality of Service (QoS), a standard that remains inconsistent in Nigeria’s telecom landscape.
Globally, tariff adjustments are often linked to strict service performance benchmarks—an approach many believe the NCC must adopt to justify any upward review.
As the NCC moves forward with its review, Nigerians may need to prepare for higher telecom costs. However, the bigger question remains whether improved pricing will be matched by better service delivery—an expectation that continues to dominate public discourse.
