The Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTR), marking the first reassessment of the interconnection pricing framework since 2018.
The initiative comes as regulators seek to align telecom tariffs with changing economic and technological realities in Nigeria's fast-evolving digital sector.
Mobile Termination Rates are regulated fees that telecom operators pay one another to complete cross-network calls and **have a significant influence on** competition, investment and retail pricing in the industry.
The review was formally launched in Lagos at a stakeholder forum involving operators, regulators and industry consultants. The NCC said it will reassess interconnection cost structures amid inflationary pressures, currency depreciation and changing network usage patterns across the country.
Speaking at the forum, Omotayo Mohammed, head of the Competition and Tariff Unit at the NCC, said the existing rates — ₦3.90 ($0.0026) per minute for standard operators and ₦4.70 ($0.0031) for new entrants — have remained unchanged since 2018 and no longer reflect current operational realities.
She said the telecom sector has evolved with the introduction of 5G, AI-driven services and the rise of platforms such as WhatsApp and Telegram, which have reduced reliance on traditional voice interconnection services. Mohammed added that misaligned termination rates could distort competition, discourage investment and increase consumer costs if not properly regulated.
To guide the process, the NCC has engaged professional services firm KPMG to conduct a four-month study involving stakeholder consultations and data-driven analysis of industry costs, traffic patterns and pricing structures.
The review will also cover related segments, including Unstructured Supplementary Service Data services, application-to-person messaging, international termination rates and the emerging framework for mobile virtual network operators. The review will be conducted under the Nigerian Communications Act, 2003, to ensure tariffs remain cost-reflective, non-discriminatory and supportive of fair competition across operator categories.
Wole Obayomi, partner at KPMG, said the review will combine industry data, international benchmarking and stakeholder input to determine a sustainable pricing model that reflects current market dynamics while safeguarding investment and consumer interests.
He added that regulators will assess financial performance indicators, including revenue, capital expenditure, service quality and traffic trends over multiple years, alongside comparisons with peer markets such as Kenya, South Africa, Indonesia and Malaysia.
The NCC said the exercise is expected to produce a revised interconnection framework that strengthens competition, improves affordability and enhances long-term confidence in Nigeria's telecommunications sector.
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