By Opeyemi Adelakun
The Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTRs), marking the first such exercise since the current rates were introduced in 2018.
The review, unveiled in Lagos on Tuesday, is aimed at aligning interconnection charges with current economic realities and technological developments within Nigeria’s telecommunications industry.
Speaking at a stakeholders’ engagement session, the NCC’s Head of Competition and Tariff, Omotayo Mohammed, said the existing rates no longer reflect the prevailing cost structure faced by telecom operators.
Mobile Termination Rates are wholesale charges paid by one network operator to another for completing calls across different networks. The rates are regulated by the NCC to promote fair competition and consumer protection.
Mohammed disclosed that the current MTR stands at ₦3.90 per minute for established operators and ₦4.70 per minute for new entrants, rates that have remained unchanged for eight years.
She noted that inflation, the depreciation of the naira, rising energy costs and increased operational expenses have significantly altered the telecommunications landscape since the last review.
According to her, emerging technologies such as 5G, Artificial Intelligence-powered services and the Internet of Things have also transformed network usage patterns beyond the assumptions of the 2018 cost model.
She further observed that Over-the-Top (OTT) platforms, including WhatsApp and Telegram, now handle a growing share of voice and messaging traffic, reducing reliance on traditional telecom interconnection services.
To drive the review process, the commission has appointed KPMG as consultant for the study and stakeholder engagement exercise, which is expected to run for four months.
The review will also examine pricing frameworks for Unstructured Supplementary Service Data (USSD), Application-to-Person (A2P) SMS services, International Termination Rates (ITR) and Mobile Virtual Network Operators (MVNOs).
Mohammed explained that the exercise is being conducted under the provisions of the Nigerian Communications Act 2003, with the objective of promoting investment, protecting consumers and ensuring a competitive telecom environment.
She said the outcome is expected to deliver cost-reflective rates that support affordable services, improve access to digital financial solutions and strengthen investor confidence in Nigeria’s digital economy.
The NCC assured stakeholders that the process would remain transparent, with key assumptions, methodologies and cost models made available for industry scrutiny and input before any final decision is reached.
Director of Public Affairs at the NCC, Nnenna Ukoha, described the review as one of the commission’s most significant public consultations, noting that MTRs play a crucial role in pricing, competition, service quality and consumer experience across the telecommunications sector.
She urged stakeholders to continue submitting data, recommendations and industry perspectives to ensure the emergence of a balanced and sustainable framework for the sector’s future growth.
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