In a historic move for Nigeria’s telecom sector, the Nigerian Communications Commission (NCC) today announced sweeping reforms that will safeguard millions of naira in unused airtime from disappearing when phone lines are deactivated. The bold new protections, unveiled during a national stakeholder forum, represent the most significant consumer rights advancement in Nigeria’s digital age.

Speaking at the virtual gathering, Mrs. Chizua Whyte, NCC’s Head of Legal & Regulatory Services, painted a vivid picture of the human impact behind the policy shift. “We’re talking about market women who save for weeks to buy airtime, students rationing credit for online classes, and entrepreneurs depending on every naira for their business communications,” she said. “These aren’t just numbers on a balance sheet—they’re the lifeblood of Nigeria’s digital economy.”

The centerpiece of the new framework gives subscribers an unprecedented 12-month window to reclaim unused airtime after their line is deactivated, a dramatic departure from current industry practice where balances vanish immediately. Telecom operators will now be required to preserve these funds and offer affected customers options to convert them into usable services like call minutes, data bundles, or other value-added offerings.

Mrs. Whyte emphasized that the reforms address a longstanding injustice in the sector, where an estimated ₦3 billion in subscriber airtime goes unclaimed annually. “This is about restoring fairness and transparency,” she told attendees. “When Nigerians pay for services, they deserve to know their money is protected—even if life circumstances temporarily take them offline.”

“Today, Nigeria sends a clear message that in our digital economy, every naira counts and every subscriber matters.” The Commission continues to welcome public input through its website until May 15, ensuring final guidelines reflect the needs of all stakeholders.

The policy introduces rigorous new requirements for telecom providers, including mandatory pre-deactivation notifications to warn subscribers about impending service termination and clear instructions for reclaiming balances. Operators will also face stringent auditing requirements, compelling them to maintain detailed records of all unclaimed balances and submit regular reports to the NCC.

Consumer advocates at the forum welcomed the changes, sharing emotional testimonies about the real-world impact. Nurse Adeola K. described losing ₦8,500 during a hectic hospital rotation, while tech entrepreneur Emeka O. noted the policy finally aligns telecom practices with the financial accountability expected in other sectors.Unused different smart phones | Premium AI-generated PSD

Implementation will move swiftly, with operators given just 90 days from the policy’s final adoption to establish compliant systems. The NCC plans to support the transition with public awareness campaigns, including multilingual FAQs and social media guides to help Nigerians navigate the new protections.

As the forum concluded, Mrs. Whyte issued a powerful reminder of the policy’s broader significance: “Today, Nigeria sends a clear message that in our digital economy, every naira counts and every subscriber matters.” The Commission continues to welcome public input through its website until May 15, ensuring final guidelines reflect the needs of all stakeholders.

For millions of Nigerian telecom users, the reforms promise something simple yet revolutionary—the peace of mind that their hard-earned airtime will no longer vanish without recourse. As the policy takes effect in coming months, subscribers are encouraged to watch for notifications from their providers and visit NCC platforms for guidance on claiming past balances.

This landmark decision positions Nigeria as a regional leader in consumer-focused telecom regulation, proving that robust protections can coexist with a thriving digital marketplace. The NCC’s bold stance sets a new standard for putting people first in Africa’s largest telecom sector.

 

Nigeria’s digital economy is undergoing a revolutionary transformation, driven by the rapid adoption of digital technologies, artificial intelligence (AI), and government-backed initiatives aimed at fostering innovation. However, despite significant progress, challenges such as inadequate infrastructure, digital literacy gaps, and regulatory roadblocks continue to pose hurdles.

A new report by Rome Business School, a leading international business education institution, takes a deep dive into this evolving landscape, analyzing how digitalization is reshaping industries like finance, telecommunications, agriculture, and education. It also outlines critical obstacles that must be overcome to unlock Nigeria’s full digital potential.

According to Asunmo Olakunle, General Manager of Rome Business School Nigeria, digitalization is no longer a choice but a necessity for economic growth. “We are witnessing impressive transformations across key sectors. However, to fully capitalize on these opportunities, Nigeria must improve its digital infrastructure, bridge the skills gap, and establish clear regulatory frameworks,” he stated.

The report highlights how AI, blockchain, and cloud computing are becoming indispensable tools for businesses. In the financial sector, AI-driven solutions are now widely used for fraud detection, credit scoring, and customer service automation, with 32% of financial institutions leveraging these innovations to streamline operations and enhance security. Similarly, the agricultural sector is seeing a shift with the adoption of IoT solutions and mobile applications that enable farmers to monitor crop health, access larger markets, and reduce reliance on middlemen.

Professor Antonio Ragusa, Founder and Dean of Rome Business School, commended the private sector’s role in accelerating digital growth. “From fintech to agritech and e-commerce, businesses are leveraging AI and digital solutions to enhance efficiency, improve service delivery, and create new economic opportunities,” he said.

Despite these advancements, Nigeria’s digital transformation is not without obstacles. Infrastructure deficits, including inconsistent power supply and unreliable internet connectivity, continue to hinder widespread adoption, particularly in rural areas. Many businesses and individuals struggle with the affordability of digital tools, limiting their ability to embrace new technologies. Furthermore, concerns about data privacy, ethical AI usage, and regulatory uncertainty remain key areas that require urgent attention.

The government has been proactive in advancing digitalisation through initiatives like the National Digital Economy Policy and Strategy (2020–2030) and the 3MTT (Three Million Technical Talent) program, which aims to train three million technology professionals by 2030. These efforts are crucial for bridging the digital skills gap and preparing Nigeria’s workforce for the future.

With over 150 million internet users, Nigeria is poised to emerge as a leading digital economy in Africa. However, achieving this vision will require a coordinated effort between the government, private sector, and academia to invest in digital infrastructure, capacity-building programs, and well-defined regulations.

To further contribute to this effort, Rome Business School will release a series of industry-specific reports covering finance, agriculture, healthcare, and manufacturing. These reports will offer actionable insights for businesses, policymakers, and investors seeking to navigate Nigeria’s digital economy.

Beyond research, the institution is actively engaged in training programs, workshops, and professional certifications designed to equip individuals and businesses with the knowledge and skills necessary to thrive in the digital age.

“Our goal is not just to analyze trends but to empower Nigerian businesses and individuals with the knowledge and tools they need to succeed,” Olakunle concluded.

The full report is available on Rome Business School’s official website, offering valuable insights for industry leaders, entrepreneurs, and policymakers shaping Nigeria’s digital future.

 

 

Despite these advancements, Nigeria’s digital transformation is not without obstacles. Infrastructure deficits, including inconsistent power supply and unreliable internet connectivity, continue to hinder widespread adoption, particularly in rural areas. Many businesses and individuals struggle with the affordability of digital tools, limiting their ability to embrace new technologies. Furthermore, concerns about data privacy, ethical AI usage, and regulatory uncertainty remain key areas that require urgent attention.

 

The Nigerian Communications Commission (NCC) has been a game-changer in 2024, reaffirming its commitment to Nigerian subscribers and the telecom industry. Addressing recent speculations about a tariff hike, the Commission has reassured Nigerians that they remain at the heart of its decisions.

This year, the NCC has taken bold steps to ensure that subscribers enjoy improved services and better protection. For instance, it mandated telecom providers to resolve customer complaints within 30 minutes at service centers, saving subscribers time and enhancing their overall experience.

The Commission has also been instrumental in expanding broadband access across the country. With its drive to achieve 70% broadband penetration by 2025, millions of Nigerians now have better access to affordable and reliable internet, creating opportunities for businesses, education, and social inclusion.

One of the standout achievements this year has been the NCC’s efforts to promote digital inclusion. Through partnerships and campaigns, the Commission has brought internet services to underserved communities, giving more Nigerians a chance to participate in the digital economy.

Cybersecurity has also been a top priority. With the increasing reliance on digital platforms, the NCC introduced stronger measures to protect subscribers from online threats, ensuring that the digital space remains safe for all users.

Economically, the NCC has created a vibrant environment for growth. By fostering competition and attracting new investments, it has helped reduce costs for subscribers while keeping the industry robust and innovative.

In response to rumors of tariff hikes, the NCC has reassured Nigerians that any decisions about tariffs will be transparent and in line with the realities of the economy. The Commission encourages subscribers to ignore unverified information and trust in its dedication to their welfare.

As the year progresses, the NCC continues to prove that it is not just a regulator but a partner to Nigerians, ensuring that the telecom sector remains dynamic, inclusive, and subscriber-focused.

By Anthony Emeka Nwosu.

 

 

In a significant move to enhance communication services and boost socio-economic development, the Nigerian Communications Commission (NCC) hosted a virtual stakeholder forum on Friday, December 20, 2024, to deliberate on the draft framework for Application-to-Person (A2P) Messaging Services Licensing. The session provided a collaborative platform for industry players, government representatives, and consumers to discuss the potential and challenges of A2P messaging in Nigeria’s telecommunications landscape.

A2P messaging, widely recognized as a vital communication tool, facilitates one-way notifications from businesses and applications to individuals. From transactional alerts such as bank notifications to promotional campaigns and healthcare reminders, the framework for A2P messaging aims to set the standard for delivering secure, reliable, and timely updates.

Building Bridges Between Stakeholders

Welcoming participants on behalf of the NCC Executive Vice Chairman, the acting Head of Legal & Regulatory Services, Mrs. Chizua Whyte, underscored the importance of the forum. “A2P messaging has become a cornerstone of modern communication, enabling businesses, governments, and service providers to connect with individuals effectively,” she stated.

Mrs. Whyte highlighted the unique benefits A2P messaging offers to stakeholders. For governments, it serves as a reliable medium for disseminating public service announcements and crucial information. For consumers, it guarantees secure access to essential updates. For businesses, A2P messaging drives innovation, creates growth opportunities, and fosters competition.

“From bank alerts to healthcare updates and government campaigns, A2P messaging is revolutionizing the way we communicate and engage. It is an essential tool for building efficiency and supporting socio-economic growth in Nigeria,” she added.

Addressing Challenges for a Thriving Ecosystem

Despite its transformative potential, Mrs. Whyte acknowledged that the A2P messaging landscape in Nigeria is not without its challenges. Issues such as fraud, spam, data privacy breaches, and uneven value distribution have hindered the growth of this critical communication tool.

“These gaps pose risks not only to businesses and consumers but also to the sustainable development of the A2P ecosystem,” she remarked. She further noted that the NCC is determined to address these challenges through fair and transparent regulations that protect all stakeholders.

The forum provided a platform for stakeholders to share their feedback on the proposed licensing framework, ensuring that the final document reflects a balanced and inclusive perspective. “Effective regulation stems from collaboration,” Mrs. Whyte emphasized. “Our goal is to create a thriving ecosystem that protects consumers, fosters fair competition, and unlocks new opportunities for innovation and growth.”

Expert Insights on the Draft Framework

Adding to the discussion, Mrs. Truddy Tony-Awusaku, Assistant Director of the Licensing and Authorisation Department, provided an in-depth overview of the framework for international A2P messaging in Nigeria. Her presentation shed light on the framework’s technical and operational aspects, further enriching the dialogue among participants.

The session concluded with a review of feedback from stakeholders, with the NCC addressing various concerns and suggestions. The Commission reiterated its commitment to developing a regulatory environment that ensures fairness, innovation, and security within the telecommunications sector.

A Step Towards Sustainable Growth

Hosting the forum aligns with the NCC’s participatory approach to policymaking, a strategy that prioritizes inclusivity and transparency. By engaging stakeholders in shaping the A2P Messaging Services Licensing Framework, the Commission aims to build a robust foundation for sustainable growth.

“The NCC remains committed to providing a regulatory framework that supports innovation, protects stakeholders, and ensures the telecommunications sector continues to thrive,” Mrs. Whyte assured participants.

This forum marks a pivotal step in redefining Nigeria’s communication landscape, demonstrating the NCC’s dedication to fostering a dynamic and inclusive ecosystem for A2P messaging. As the framework nears finalization, stakeholders look forward to its potential to transform communication and drive progress across industries.

 

 

In its relentless drive to create a thriving, efficient, and safe telecommunications landscape, the Nigerian Communications Commission (NCC) has implemented comprehensive standards for telecom equipment through its “Type Approval” process. These regulations are designed to ensure that every device used in Nigeria’s telecom ecosystem is not only safe but also operates seamlessly to support the industry’s growth and enhance the quality of service (QoS) for millions of Nigerians.

The NCC’s vision is clear: to make Nigeria’s telecom industry a model of excellence, fostering innovation, interoperability, and consumer satisfaction. As the industry regulator, the NCC recognizes that its role extends beyond oversight—it is about enabling progress and profitability for stakeholders, from operators to end-users.

A Commitment to Seamlessness and Safety

The Commission, empowered by the Nigerian Communications Act of 2003, emphasizes that its Type Approval standards are not just technical requirements—they are the backbone of a robust telecom environment. According to the NCC:

> “Our mission is to ensure that every telecommunications device operates harmoniously within Nigeria’s ecosystem, prioritizing safety, affordability, and user experience. This is vital for creating a network that supports innovation and delivers world-class service to consumers.”

 

The Type Approval process ensures that all telecom equipment—whether used by operators or individuals—meets stringent safety and operational benchmarks before entering the Nigerian market.

Global Standards for a World-Class Industry

Understanding the global nature of telecommunications, the NCC has aligned its standards with international best practices. Drawing from globally recognized institutions such as the International Electrotechnical Commission (IEC), the European Telecommunications Standards Institute (ETSI), and others, the Commission ensures that Nigeria’s telecom industry is globally competitive.

This alignment means that equipment manufacturers, vendors, and operators can seamlessly integrate their technologies into Nigeria’s networks while maintaining affordability and quality for consumers. Additionally, the NCC leverages Nigeria’s membership in organizations like the Standards Organisation of Nigeria (SON) to stay at the forefront of global regulatory advancements.

Empowering the Industry for Growth

The NCC’s Type Approval standards cover a wide range of telecom equipment, from mobile phones and wireless adapters to advanced satellite communication devices. These standards are grouped into categories to address specific industry needs, including:

Safety and reliability: Ensuring devices are safe for consumers and operators.

Electromagnetic compatibility: Minimizing interference for smooth operations.

Physical interoperability: Guaranteeing seamless integration across networks and systems.

By ensuring that only high-quality, compliant equipment is used, the NCC provides operators with the tools they need to deliver reliable services. This ultimately reduces operational challenges, enhances consumer satisfaction, and builds trust in Nigeria’s telecom sector.

Supporting Innovation and Excluding Obsolescence

While the NCC champions innovation, it also recognizes the importance of focusing on relevant technologies. The Commission excludes obsolete services, such as analogue mobile telephony, and those unlikely to gain traction in Nigeria, ensuring that resources are dedicated to impactful advancements.

Deepening Quality of Service for Nigerians

At the heart of the NCC’s mission is the Nigerian consumer. By enforcing these standards, the Commission not only ensures safety and compatibility but also deepens the quality of service across the board. Whether it’s clearer calls, faster internet, or more reliable connections, the Type Approval process directly contributes to improving the daily experiences of Nigerians.

A Profitable and Sustainable Industry

For operators and stakeholders, the NCC’s focus on international standards and interoperability creates a level playing field that fosters growth and profitability. By eliminating the risks associated with substandard equipment, the Commission helps businesses reduce costs, optimize performance, and deliver better value to their customers.

A Partner for Progress

The NCC’s approach to regulation is not about imposing restrictions; it’s about building partnerships for progress. By working closely with manufacturers, operators, and international organizations, the Commission ensures that Nigeria’s telecom industry remains a leader in Africa and a benchmark for others to follow.

 

 

The Nigerian Communications Commission’s Type Approval standards reflect its unwavering dedication to creating a seamless, safe, and profitable telecom industry. By prioritizing global best practices, innovation, and consumer satisfaction, the NCC continues to empower the industry, deepen the quality of service, and position Nigeria as a hub for telecommunications excellence.

 

 

The Nigerian Communications Commission (NCC) has raised an urgent alarm over the destructive impact of vandalism and denial of access to telecom facilities, describing these challenges as critical threats to the nation’s digital economy and connectivity goals.

Speaking at the Critical National Information Infrastructure (CNII) Protection and Resilience Workshop Series, organized by the National Cybersecurity Coordination Centre (NCCC) under the Office of the National Security Adviser, Dr. Aminu Maida from the NCC painted a sobering picture of how these issues ripple across the telecommunications ecosystem, affecting millions of Nigerians.

A Chain Reaction of Challenges
Dr. Maida revealed that vandalism and theft, coupled with widespread denial of access to telecom facilities, have created a domino effect that cripples network expansion and service maintenance. “In 2023 alone, over 20,000 cases of site access denial were recorded,” he said. “Each of these cases represents a missed opportunity to connect more Nigerians and a barrier to building a robust digital economy.”

The denial of access by property owners, communities, and various levels of government has hindered operators from installing new infrastructure and maintaining existing ones. This seemingly isolated issue has far-reaching consequences, not only for the telecom industry but also for the socioeconomic growth of the nation.

The Domino Effects on Nigerians
When a telecom site is vandalized or access to it is restricted, the effects extend beyond the immediate inconvenience of dropped calls or slow internet speeds:

1. Economic Stagnation: Businesses, especially SMEs reliant on digital connectivity, are unable to thrive due to inconsistent or unavailable services. Entrepreneurs are losing customers, while e-commerce platforms struggle to meet demands.

2. Disrupted Education: With online learning now a critical part of education, students in affected areas are left disconnected, their academic progress hindered by poor network quality.

3. Healthcare Impact: Telemedicine services, which rely on stable networks to provide remote consultations, become unreliable, particularly in rural areas where access to healthcare is already limited.

4. National Security Risks: Vandalized or inaccessible telecom facilities can compromise communication systems used for security and emergency response, leaving communities vulnerable.

5. Digital Transformation Delays: The federal government’s ambition to build a thriving digital economy is directly impacted, as these setbacks hinder progress in broadband penetration and other critical infrastructure goals.

 

A Call for Collective Action
The NCC emphasized that these issues cannot be solved in isolation. Telecom operators, government agencies, community leaders, and property owners must work collaboratively to address the root causes.

“This isn’t just about telecom companies—it’s about the entire nation,” Dr. Maida stated. “Every time a mast is vandalized or a site is blocked, it creates a ripple effect that hurts every Nigerian in one way or another. Protecting telecom facilities is a collective responsibility.”

The Road Ahead
To tackle these challenges, the NCC is intensifying its advocacy and engaging with stakeholders to find lasting solutions. Proposals include stricter laws against vandalism, public awareness campaigns on the importance of telecom infrastructure, and streamlined processes for gaining access to sites in restricted areas.

As Nigeria strives to enhance its digital connectivity and position itself as a global tech hub, protecting the backbone of its telecom network has never been more critical. Failure to act decisively, the NCC warned, could result in a stagnated digital economy and a disconnected population at a time when connectivity is synonymous with progress.

The stakes are high, but with a united approach, the vision of a fully connected Nigeria can still be achieved.

 

 

As the cost of living continues to rise, it is becoming increasingly clear that the telecommunications sector, a backbone of Nigeria’s digital economy, cannot be exempt from the economic realities gripping the nation. While Nigerians depend heavily on affordable and reliable voice and internet services, the truth is that telecom operators are grappling with skyrocketing operational expenses, which threaten the sustainability of the entire industry.

The Nigerian Communications Commission (NCC) has announced that it will unveil a new and simpler tariff structure for telecom operators on December 13, 2024. This move signals a critical step towards addressing the imbalance between service costs and operational realities. While no one likes the idea of paying more, we must face the uncomfortable truth: quality services come at a cost, and maintaining the status quo could lead to a collapse in service standards.

The Unseen Struggles of Telecom Operators

Telecom operators in Nigeria, including major players like MTN, Airtel, and Glo, have long kept prices stable, even as the costs of fuel, electricity, and infrastructure maintenance have soared. In October, MTN’s CEO, Karl Toriola, painted a bleak picture: the industry is hemorrhaging money, relying on financial reserves to stay afloat. This is not a sustainable model.

Earlier this year, telecom operators made their first call for a tariff review in 11 years. Their argument was simple: without a fair adjustment to tariffs, the quality of service will deteriorate, and the financial health of the sector will be compromised. Despite these warnings, the industry has continued to bear the brunt of economic inflation without passing the costs on to consumers.

Why Nigerians Should Pay Attention

The telecommunications sector is one of the few that has not raised prices despite inflationary pressures. Yet, this generosity cannot last forever. Network operators must invest in infrastructure to expand coverage, improve internet speeds, and ensure that call quality meets global standards. Without the necessary financial resources, these investments will stall, leaving Nigerians with subpar services.

It’s also worth considering that telecommunications are no longer a luxury but a necessity. From remote work to online learning, e-commerce, and healthcare, every aspect of modern life depends on a robust and reliable digital network. If we expect first-world services, we must be willing to shoulder part of the cost.

The NCC’s Balancing Act

The NCC’s new tariff framework promises to make pricing more transparent and consumer-friendly. While the details are still under wraps, it’s crucial that any changes strike a balance between affordability for consumers and profitability for operators. This is not just about raising prices—it’s about ensuring that the industry remains viable while providing Nigerians with the quality services they deserve.

A well-thought-out tariff adjustment could also open the door for innovative pricing models. For example, operators might introduce data-sharing plans, pay-per-use models, or tailored packages for different demographics. Such initiatives would ensure that consumers get value for money while helping operators cover their costs.

A Call for Understanding

As we approach December 13, it’s important for Nigerians to approach this issue with an open mind. Nobody wants to pay more, but the cost of doing nothing is far greater. If operators can no longer sustain their services, the digital backbone of our economy will crumble, affecting millions of lives and businesses.

The NCC’s forthcoming announcement is a reminder that we are all stakeholders in this industry. While telecom operators must prioritize efficiency and innovation, consumers must also recognize the economic realities and be prepared to contribute to the sustainability of this vital sector.

By ensuring that telecom tariffs reflect the true cost of operation, we can secure a brighter, more connected future for all Nigerians.

— Anthony Emeka Nwosu

Telecom operators in Nigeria, including major players like MTN, Airtel, and Glo, have long kept prices stable, even as the costs of fuel, electricity, and infrastructure maintenance have soared. In October, MTN’s CEO, Karl Toriola, painted a bleak picture: the industry is hemorrhaging money, relying on financial reserves to stay afloat. This is not a sustainable model.

 

As technology evolves at an unprecedented pace, staying ahead has become critical for industries, especially in telecommunications. Regulators like the Nigerian Communications Commission (NCC) are tasked with keeping up to ensure the telecom ecosystem thrives. In a major step forward, the NCC has outlined an updated list of licensing agreements aimed at strengthening Nigeria’s telecom industry, fostering innovation, and ensuring quality services for consumers.

One of the key areas the NCC is addressing is access to connectivity. For instance, the Wholesale Wireless Access license allows companies to offer large-scale wireless services to meet the growing demands for data and internet access. Alongside this, the Open Access Fibre Infrastructure license supports the expansion of high-speed broadband, ensuring Nigerians benefit from faster and more reliable internet connections.

The Commission also places a strong emphasis on Value Added Services (VAS), which enhance telecom offerings beyond basic calls and texts. Licenses in this category include those for services like mobile content creation, special numbering solutions, and customer support systems via call centers. These licenses are critical for businesses looking to innovate and deliver tailored solutions to Nigerian consumers.

Infrastructure is another area the NCC is targeting. Licenses for Submarine Cable Infrastructure & Landing Stations, National Carriers, and Unified Access Services are designed to create a strong backbone for telecom operations across the country. These licenses ensure that businesses and individuals alike have access to seamless and reliable communication networks.

The regulator is also accommodating niche services, such as vehicle tracking, trunk radio operations, and public payphone services, through specific licensing. Moreover, licenses for Internet Services and Internet Exchange Platforms highlight the NCC’s commitment to improving the country’s digital landscape, supporting both businesses and individuals in their daily connectivity needs.

To ensure a collaborative and competitive environment, the NCC has introduced licenses for Infrastructure Sharing and Collocation Services. These allow operators to share resources, such as towers and data centers, reducing costs and improving efficiency.

Beyond licensing documents, the NCC has introduced operational frameworks to guide the industry. For example, the Mobile Virtual Network Operator (MVNO) Licensing Framework provides a pathway for companies that want to offer telecom services without owning physical infrastructure. Similarly, the Accounting Separation Framework promotes transparency, helping operators separate costs and revenues for better accountability.

The NCC has also introduced innovative frameworks for high-speed connectivity, such as the 70/80GHz E-Band Licensing Framework, which is tailored for enterprise services and last-mile connectivity. Additionally, the Unified Access Service Framework simplifies the licensing process for operators offering a combination of telecom services.

By introducing these updated licenses and frameworks, the NCC is setting a bold vision for Nigeria’s telecom sector. The aim is to create a dynamic environment where businesses can thrive, consumers get better services, and Nigeria’s position as a tech hub in Africa is solidified.

These changes reflect the NCC’s commitment to driving progress and ensuring that the telecom industry keeps pace with global trends. Operators, innovators, and stakeholders are encouraged to explore the full list of requirements available on the NCC website, as they align with this new wave of technological advancement.

 

 

By Anthony Emeka Nwosu

Nigeria’s telecom industry is facing a serious crisis, and it’s not something that can be ignored any longer. The interconnection debts owed to telecom operators by financial institutions, especially banks, have ballooned into a massive issue. These debts, now running into hundreds of billions, have created a ripple effect that threatens to destabilize the entire sector.

The figures speak for themselves—what started as N32 billion in 2022 has now skyrocketed to over N120 billion. This is money that telecom companies rely on to keep their networks running smoothly, maintain infrastructure, and continue providing essential services like mobile banking, payments, and communications. But with financial institutions dragging their feet in paying up, the telecom industry is struggling to keep up.

One of the most impressive aspects of the situation is the way the Nigerian Communications Commission (NCC) is stepping up to address the crisis. The NCC, in collaboration with the Central Bank of Nigeria (CBN), has been working tirelessly to ensure that banks fulfill their financial obligations. This collaboration is a powerful example of regulatory bodies coming together to protect a critical sector and ensure that services remain uninterrupted. Through this concerted effort, the NCC is sending a clear message to the financial sector: pay up, or risk damaging the telecom industry, which is vital to Nigeria’s economy.

However, the debts are doing more than just putting pressure on telecom companies—they’re also causing a domino effect that is hurting the industry in many ways. First and foremost, the failure to settle these debts has a direct impact on job security within the telecom sector. Without the necessary cash flow to expand and upgrade their networks, telecom companies may be forced to scale back operations, laying off employees, and reducing the number of new jobs created in the sector.

Secondly, this ongoing debt crisis is shaking investor confidence. Telecom companies in Nigeria are already dealing with high operational costs, and the added burden of unpaid debts makes the sector appear increasingly unstable. For investors, this is a major red flag. If the sector cannot maintain a stable cash flow and meet its financial obligations, they may think twice before making long-term investments in telecom infrastructure or services. As a result, this could slow down the pace of innovation, infrastructure development, and the expansion of telecom services across Nigeria and beyond.

Lastly, the debts are also preventing telecom companies from reinvesting their profits into their operations. Profit reinvestment is essential for the growth and diversification of any business, but telecom operators who are left waiting for billions in unpaid debts cannot afford to put money back into their networks or expand into new areas of business. This stagnation can have long-term negative effects, limiting the sector’s ability to evolve with changing technologies and market demands.

The good news is that the NCC and CBN are making strides in resolving the issue. Their active involvement is crucial in preventing the further deterioration of the telecom sector. The NCC has done well in leading the way to clear these debts and ensure that telecom companies can continue to thrive. But this effort must be supported by all stakeholders—especially the banks and financial institutions that owe telecom operators.

At the end of the day, these debts are not just a financial issue; they are a matter of national importance. The telecom industry is a pillar of Nigeria’s digital economy, and if we don’t address the outstanding debts, we risk undermining the entire sector. The role of the NCC in making sure these debts are cleared is crucial, not just for the telecom companies, but for the economy at large.

If the debts are paid, if telecom companies are given the resources they need to continue growing, and if investors feel confident that the sector is stable, then Nigeria’s telecom industry can continue to be a leader in Africa’s digital revolution. But if we continue to let these debts pile up, we’ll be looking at a future where telecom companies can’t expand, job opportunities shrink, and Nigeria’s ambitions for digital growth fall short. The time to act is now, and the NCC is showing us the way. Let’s not waste it.

 

 

 

Anthony Emeka Nwosu

 

 

The Nigerian Communications Commission (NCC) is actively working with the Central Bank of Nigeria (CBN) to resolve the ongoing N250 billion debt owed by Nigerian banks to telecommunications operators for Unstructured Supplementary Service Data (USSD) services. As the sector’s regulatory body, the NCC is committed to ensuring a sustainable and balanced resolution that protects consumers, promotes fair practices, and upholds the integrity of mobile financial services.

The Critical Role of USSD in Financial Services
USSD, a mobile communication system used for essential financial services such as money transfers, balance checks, and bill payments, is a vital tool for millions of Nigerians. However, telecom operators have raised concerns about non-payment by banks for these services, leading to an increasing debt burden that has now reached N250 billion.

The debt issue dates back to 2019 when telecom operators proposed a charge of N4.50 per 20 seconds of USSD usage, to be deducted from the fees banks collect from customers. The banks opposed the charges, citing the high cost of the proposal, which they argued would increase service costs by 450%. This disagreement has led to the current financial dispute.

NCC’s Commitment to Resolving the Issue
In light of the growing tension, the NCC has stepped in as a mediator between the telecom operators and the banking sector. Dr. Ikechukwu Adinde, Director of the NCC’s Consumer Affairs Bureau, emphasized the Commission’s dedication to resolving the crisis in a way that balances the interests of all parties involved, especially consumers.

“The NCC’s priority is to ensure the continuity of essential mobile financial services and to protect the interests of consumers who rely on USSD daily for critical financial transactions,” said Dr. Adinde. “We are committed to working with the CBN and other stakeholders to find an equitable solution that resolves this debt issue and ensures the continued provision of these services without disruption.”

Focus on Transparent and Fair Practices
As part of its regulatory role, the NCC is also taking steps to increase transparency in the telecommunications sector. New regulations will soon require telecom operators to clearly communicate their tariff plans, billing rates, and service terms to customers. This move is designed to enhance consumer trust and ensure a more transparent and predictable service environment.

“We recognize that transparency is crucial in fostering a fair and competitive telecommunications industry. Our goal is to provide clear guidelines that ensure fair pricing, protect consumers, and support sustainable business practices across both the telecom and banking sectors,” Dr. Adinde added.

A Balanced Path Forward

The NCC’s actions align with its long-standing commitment to ensuring that the telecommunications industry operates in the best interests of all stakeholders. By facilitating a collaborative approach with the CBN, the NCC aims to resolve the USSD debt dispute while reinforcing its regulatory oversight to prevent future conflicts.

“We are confident that with the support of all parties involved, we will reach a resolution that addresses the current debt crisis and establishes a more structured framework for USSD services moving forward,” Dr. Adinde concluded.

The NCC continues to engage with relevant stakeholders and is optimistic that the ongoing efforts will lead to a fair resolution that preserves the integrity of Nigeria’s mobile financial services ecosystem.