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  • NCC Moves to Review Call and SMS Interconnection Rates, Nigerians Brace for Possible Tariff Hike

    The Nigerian Communications Commission (NCC) has commenced a review of interconnection rates for voice calls and SMS services across telecom networks, a development that could lead to higher charges for mobile subscribers in Nigeria. The review comes as regulators assess the Mobile Termination Rate (MTR) regime introduced eight years ago.

    The move was discussed at a stakeholders’ consultative forum held in Lagos on Tuesday, where industry experts highlighted rising operational costs and economic pressures affecting telecom operators.

    Rising Costs Drive Regulatory Review

    According to KPMG partner, Wole Adenekan, the review has become necessary due to major economic changes since 2018.

    He cited inflation, naira depreciation, rising energy costs and higher equipment expenses as key factors increasing operators’ cost structures.

    “A mis-set MTR can enable dominant operators to foreclose smaller competitors through high termination barriers. A cost-reflective rate supports a level competitive playing field,” Adenekan said.

    He added that while cost-reflective pricing could improve efficiency and investment in the sector, consumers may ultimately bear the impact through higher retail charges.

    Telecom Sector Evolution Under Consideration

    Adenekan also pointed to technological shifts, including the rollout of 5G networks, increased use of artificial intelligence and Internet of Things (IoT) services, as well as competition from Over-the-Top (OTT) platforms, as reasons the current interconnection framework may no longer reflect industry realities.

    He noted that these changes have significantly altered how telecom services are delivered and consumed in Nigeria.

    NCC Explains Policy Direction

    The NCC, through its Head of Competition and Tariff Unit, Omotayo Mohammed, described the review as a necessary regulatory step aimed at aligning pricing structures with current economic and technological realities.

    She said the commission would also assess existing retail price controls and asymmetry arrangements to ensure consumer protection while maintaining sector stability.

    Concerns Over Possible Tariff Increase

    While the review is aimed at balancing operator sustainability and competition, there are growing concerns that any upward adjustment in interconnection rates could translate into higher call and SMS costs for consumers.

    The outcome of the review is expected to shape pricing trends in Nigeria’s telecom sector in the coming months.

     

  • Airtime Credit May Return as Court Orders Shake FCCPC Rules, Pressure Mounts on MTN, Airtel

     

    Millions of Nigerian telecom subscribers may soon regain access to airtime and data credit services after two Federal High Court rulings challenged the regulatory basis behind their suspension earlier in April. The development follows weeks of disruption that left prepaid users without access to emergency borrowing options widely relied on across the country.

    Subscribers Stranded as MTN, Airtel Suspend Credit Services

    The services, including MTN Nigeria’s XtraTime and Airtel’s data credit options, were suspended following compliance concerns linked to new digital lending regulations issued by the Federal Competition and Consumer Protection Commission (FCCPC). The sudden halt affected millions of users, especially low-income earners, traders, and small business operators who depend on the services for daily connectivity.

    The disruption triggered widespread frustration as users were cut off from short-term credit facilities often used to manage urgent communication and business needs. Telecom operators had attributed the suspension to regulatory uncertainty surrounding the new framework.

    Lagos Court Restrains FCCPC From Enforcing Regulations

    On April 15, the Federal High Court in Lagos, presided over by Justice A. Lewis-Allagoa, granted an interim injunction restraining the FCCPC from enforcing key provisions of its 2025 Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations against members of the Wireless Application Service Providers Association of Nigeria (WASPAN).

    The court also barred the commission from imposing sanctions or issuing further directives that could disrupt operations within the existing telecom structure. The ruling is seen as a major setback to the regulatory reach of the FCCPC in the ongoing dispute.

    Abuja Court Blocks Suspension of Telecom Infrastructure Access

    In a separate ruling in Abuja, the Federal High Court restrained MTN Nigeria and Airtel Networks Limited from suspending or limiting access to telecom infrastructure for Nairtime Holdings Limited and Nairtime Nigeria Limited. The order specifically covered USSD channels, short codes, SMS platforms, and billing systems tied to airtime credit services.

    The court further stated that telecom operators must respect contractual notice periods and dispute resolution mechanisms before acting on regulatory changes. This effectively questioned the legality of the abrupt suspension carried out by operators in April.

    Regulatory Clash Between FCCPC and NCC Deepens

    At the centre of the dispute is a jurisdictional conflict between regulatory bodies over who controls digital lending services delivered through telecom platforms. The FCCPC had expanded its oversight in July 2025 to cover airtime and data credit services under its digital lending framework.

    However, industry stakeholders insist the services fall under the Nigerian Communications Commission (NCC), citing the Nigerian Communications Act of 2003. They argue that telecom-based credit products should remain within NCC’s regulatory domain rather than consumer protection oversight.

    Industry Pushback and Economic Concerns

    Following the regulatory uncertainty, MTN and Airtel suspended the services pending clarification, a move that triggered backlash from stakeholders and consumers. WASPAN has accused the FCCPC of regulatory overreach, while urging full compliance with court orders and renewed collaboration with the NCC.

    Analysts estimate that airtime lending transactions in Nigeria are valued between ₦500 billion and ₦1.2 trillion annually, highlighting their importance as an informal credit lifeline for millions of Nigerians. The suspension, they note, temporarily disrupted a key financial support system within the telecom ecosystem.

    Restoration Expectations Build as Legal Battle Continues

    Although both cases have been adjourned for further hearings, attention has now shifted to telecom operators and how quickly services may be restored. The court rulings have significantly weakened the justification previously used for the suspension, raising expectations of an imminent return of airtime and data credit services.

    As the legal and regulatory battle continues, stakeholders warn that prolonged uncertainty could further affect consumer access and digital financial inclusion in Nigeria’s telecom sector.

     

  • MTN to Begin Subscriber Compensation After NCC Directive on Poor Service

    MTN Nigeria is set to begin compensating its subscribers following a directive from the Nigerian Communications Commission (NCC), requiring telecom operators to refund users affected by poor network service.

    Automatic compensation for users

    The policy, which took effect in April 2026, mandates operators to identify affected customers and credit them directly without requiring any formal complaint or application.

    Subscribers who experienced dropped calls, slow data, or failed SMS may receive airtime or data compensation once service quality falls below NCC thresholds.

    Who qualifies for payback

    According to the guidelines, compensation applies only to users who experienced verified service disruptions within a specific period and carried out a paid activity such as calls, SMS, or data usage.

    However, brief or quickly resolved outages are excluded from the policy.

    The directive covers failures across voice, data, and messaging services.

    Shift in regulatory approach

    The move marks a significant shift in Nigeria’s telecom regulation, as consumers will now directly benefit from penalties imposed on operators.

    Previously, telecom companies were fined for poor service, but subscribers did not receive compensation.

    The NCC said the new framework prioritises consumer protection and accountability in service delivery.

    Directive timeline and enforcement

    The policy followed a directive issued by the NCC on March 29, 2026, instructing all telecom operators, including MTN, Airtel, Globacom, and 9mobile, to implement compensation measures.

    Further guidelines released on April 7 outlined how eligibility, timelines, and credit systems would be applied.

    The framework is backed by existing regulations, including the Consumer Code of Practice and Quality of Service standards.

    Industry pressure and infrastructure challenges

    The development comes amid ongoing challenges in Nigeria’s telecom sector, including frequent fibre cuts and infrastructure limitations that affect service quality.

    With over 180 million telecom users nationwide, regulators have faced increasing pressure to ensure operators are held accountable in ways that directly impact consumers.

    The move is already gaining attention in latest Nigerian news and breaking news Nigeria today as millions of subscribers await possible compensation.