In June 2026, the Nigerian Communications Commission (NCC) formally launched a comprehensive review of Mobile Termination Rates (MTR), the first exercise of this kind in the country since 2018. Far exceeding traditional voice interconnection, the review explicitly covers the pricing frameworks for A2P SMS and USSD services. According to the NCC, growing reliance on A2P SMS among banks, fintechs, government agencies and digital platforms means the existing pricing regime fails to reflect current‑day market realities including inflation, currency depreciation and climbing energy costs.
The review comes amid profound transformations across Nigeria’s telecom sector over the past eight years. Since tariffs were last set in 2018, sharp naira devaluation, soaring inflation and persistent energy‑cost hikes have fundamentally reshaped operators’ cost structures. Meanwhile, 5G roll‑outs, AI‑powered services and IoT adoption have reshaped network‑usage patterns beyond the assumptions of the 2018 cost model. OTT platforms such as WhatsApp and Telegram carry substantial volumes of voice and messaging traffic, lowering reliance on legacy interconnection services. Current Nigerian MTRs remain unchanged for eight years: NGN 3.90 per minute for incumbent operators and NGN 4.70 per minute for new‑market entrants.
The explicit inclusion of A2P SMS marks a significant milestone. NCC officials note enterprise‑messaging services have expanded substantially since the prior tariff review. Banks, fintech firms, government bodies and digital platforms increasingly leverage A2P SMS for transaction alerts, one‑time passwords, customer notifications and identity verification. The existing regulatory framework may not adequately address the scale and commercial weight of these services. Speaking at a stakeholder consultation forum in Lagos, Omotayo Mohammed, Director of Competition and Tariffs at NCC, stated clearly: “USSD, MVNO integration and A2P operate at large scale; the current tariff system does not sufficiently address them and requires formal regulatory treatment.”
NCC has appointed KPMG as consultant to deliver the study and stakeholder‑engagement activities over an estimated four‑month timeline. KPMG will assess the effectiveness of prevailing interconnection rules, benchmark Nigeria against comparable markets including South Africa and Kenya, and develop forward‑looking cost models to underpin new‑pricing structures. Operators shall submit five‑year financial and operational datasets. The study will deploy the Long‑Run Incremental Cost‑plus (LRIC+) methodology, a globally recognised regulatory standard for setting termination rates. NCC stresses the review targets a cost‑oriented, transparent, evidence‑led regulatory framework to foster investment, strengthen competition and improve consumer welfare.
