NIGERIA Trends and Developments Contributed by: Tiwalola Osazuwa, Peretimi Akinmodun, Lazarus Uwa Kalu and Mubaraq Popoola, ǼLEX
Nigerian telecommunications tariffs set for revision The NCC is preparing to approve new tariffs for telecommunications services in Nigeria, marking the first adjustment in recent times. This decision comes as a response to rising economic chal - lenges and the need to sustain investments by MNOs in delivering quality services to Nigerians. Tariffs for voice calls, SMS messages and data in Nigeria have remained static for years despite significant economic shifts. The high rate of inflation and the persistent devaluation of the naira have increased operational costs for MNOs, who have insisted that it has become increasingly difficult for them to invest in network expansion and service quality improvement. This has prompted the NCC to reconsider the exist - ing tariff structure to ensure the sustainability of the telecommunications sector. The new tariffs will be designed to reflect cur - rent economic realities while ensuring fairness for consumers. To enhance transparency, the NCC has indicated that MNOs will be required to simplify their billing templates, clearly out - lining charges per minute for voice calls, SMS messages and 1 MB of data. This measure aims to help Nigerians better understand the costs associated with telecom services and ensure that the tariff adjustments are both transparent and equitable. While the proposed tariff increase may initially raise concerns among consumers, it is posi - tioned as a necessary step to maintain the long- term viability of the telecommunications industry.
Telecommunications Suspension of the mobile virtual network operators licences In 2022, the Nigerian Communications Commis - sion (the “NCC”) introduced the mobile virtual network operators (MVNOs) licence to enhance telecommunications services in Nigeria. MVNOs are wireless communication service provid - ers that purchase mobile network services at wholesale prices from mobile network opera - tors (MNOs) and resell them at discounted rates to customers. However, unlike MNOs, MVNOs do not own core network infrastructure or spec - trum. Instead, they rely on their host MNOs to deliver network services. Their primary role is in sales, marketing and customer engagement. The introduction of the MVNO licence, which allows smaller, specialised players to enter the market, was aimed at encouraging innovation and diversity in offerings, stimulating competi - tion, driving innovation, reducing costs, address - ing unserved and underserved populations and improving the overall quality of services in the telecommunications sector. However, the NCC announced the suspension of MVNO licence applications with effect from 17 May 2024. The decision came nearly a year after the regulator issued licences to 25 compa - nies. According to the NCC, the suspension is intended to facilitate a comprehensive review of key factors, including current competition lev - els, market saturation and the overall dynam- ics of the telecommunications sector, to ensure that the introduction and operation of MVNOs remain effective in achieving the sector’s goals of enhancing service quality and accessibility. The timing or certainty of the NCC lifting the sus - pension on the licence category remains unclear.
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