Telecommunications operators have reported that the 50 per cent tariff hike approved last year has triggered approximately N4 trillion in investment inflows for infrastructure expansion and upgrades across Nigeria's telecom sector.
ALTON confirms investment surge
Speaking in Lagos, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, said operators, tower companies, and other industry participants have continued to invest heavily in network infrastructure and service improvements. He stated that between the tariff approval in 2025 and now, about N4 trillion in investments have further expanded the industry's infrastructure.
“In 2025, the sector recorded total capital expenditure of approximately N2.13 trillion, while planned capital expenditure for 2026 stands at approximately N1.86 trillion. All thanks to the tariff increase,” he said.
Adebayo expressed gratitude to the Nigerian Communications Commission (NCC) for facilitating the tariff adjustment, which provided much-needed relief to operators amidst unprecedented increases in operating costs.
NCC reviews Mobile Termination Rate
ALTON welcomed the NCC's plans to review the current Mobile Termination Rate (MTR), which has remained stagnant at N3.90 per minute for generic operators and N4.70 for new entrants since 2018. Adebayo stressed that the MTR review is fundamental to the health, sustainability, and competitiveness of the industry.
The NCC has initiated a comprehensive consultancy study, appointing KPMG to carry out the tasks and engage stakeholders within the next four months. The study will address critical gaps in the current framework, including the treatment of USSD services and Application-to-Person (A2P) SMS.
Study objectives
The consultancy document outlines several key deliverables:
- Cost-reflective MTR determination across technology generations (2G-5G), operator categories, and clearing house arrangements
- Updated International Termination Rate (ITR) to address grey-route traffic concerns
- Formal pricing framework for Mobile Virtual Network Operator (MVNO) onboarding and interconnection
- Review of retail price floors and caps to ensure alignment with current cost structures
- Assessment of the asymmetric rate structure between large and new entrant operators
NCC Head of Competition and Tariff, Omotayo Mohammed, noted that the rapid deployment of 5G networks, coupled with AI-driven services and IoT applications, has reshaped network usage patterns. She also highlighted that Over-the-Top (OTT) players like WhatsApp and Telegram continue to capture significant voice and messaging traffic, reducing reliance on traditional interconnection.
Stakeholder reactions
Speaking on behalf of the Association of Telecoms Companies of Nigeria (ATCON), Chidi Ibisi noted that the review is timely, as a stable and transparent MTR is essential for ensuring that smaller operators are not priced out of the market by dominant players. He recommended the retention of the current structure of asymmetric mobile termination rates to support new entrants and smaller operators with less than 10 per cent market share.
The NCC pledged to make all methodology, key assumptions, and cost model parameters available for stakeholder review, ensuring transparency throughout the process.
