Telecommunications operators in Nigeria have dismissed concerns that an ongoing cost-based study by the Nigerian Communications Commission (NCC) will automatically lead to higher tariffs, insisting that the outcome could also result in lower pricing depending on market data.
The operators were reacting to the NCC's commencement of a comprehensive review of Mobile Termination Rates (MTRs), the wholesale charges telecom firms pay each other to complete calls across different networks. The review marks the first major reassessment of the framework since 2018.
ALTON on Airtime Pricing
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said stakeholders should avoid speculation and allow the regulatory process to run its course. He stressed that the exercise is a standard industry practice aimed at aligning pricing with current economic realities rather than a pre-determined move to raise consumer tariffs, according to Vanguard reports.
He stated: "There is no need to throw the sector into panic mode. Why are people immediately jumping to conclusions that reviewing MTR will inflate tariffs?" According to him, operators are expected to present accurate cost data to guide the outcome.
The NCC said the review has become necessary due to major changes in the telecom environment, including inflation, currency depreciation, rising energy costs, and rapid technological shifts such as 5G deployment and digital service expansion. The current MTR structure, which stands at about N3.90 per minute for established operators and N4.70 for newer entrants, has remained unchanged for about eight years despite significant economic pressure on operators.
Pricing Review
The commission, working with consulting firm KPMG, said the study will extend beyond voice termination charges to include international termination rates, USSD pricing, A2P messaging, retail voice controls, and wholesale frameworks for mobile virtual network operators. KPMG noted that the rise of internet-based communication platforms, artificial intelligence, and Internet of Things services has altered network economics, reducing reliance on traditional voice revenue while increasing data-driven demand.
Operators argue that maintaining an outdated pricing structure is no longer sustainable, citing high inflation, foreign exchange volatility, diesel costs, and heavy infrastructure investment requirements. Despite these challenges, the sector recorded significant capital expenditure of over N2 trillion in 2025, with additional investments planned for 2026 to support network expansion and 5G rollout.
Telcos Resume Airtime Lending
Earlier, Legit.ng reported that MTN Nigeria is preparing to restore its popular Xtratime airtime and data lending service following a regulatory pause that has already prompted Airtel and Globacom to resume similar offerings. An MTN insider confirmed that the company is taking steps to reinstate Xtratime after the FCCPC halted enforcement of the controversial regulations. The decision marks a shift from MTN's earlier position. During its May earnings call, company executives had maintained that a court ruling restricting the implementation of the regulations did not automatically require telecom operators to resume lending services.
