NCC Begins Review of Nigeria’s Telecom Policy, Seeks Lower Right-Of-Way Fees, Harmonized Taxes, Others

 

Nigerian Communications Commission (NCC) has officially begun a review of the National Telecommunications Policy 2000 (NTP), nearly three decades after its adoption, citing rapid technological shifts and evolving market realities that have outpaced the existing framework.

The Commission announced the launch of the review on Monday, releasing a consultation paper to solicit input from stakeholders on proposed updates to the policy.

According to the NCC, the overhaul aims to reposition Nigeria’s telecommunications framework to reflect contemporary trends in digital services, internet governance, satellite communications, broadband expansion, and universal access, while sustaining the sector’s role as a key driver of economic growth.

The NCC highlighted that the National Telecommunications Policy 2000 itself replaced the 1998 policy, introducing full market liberalisation, stakeholder consultation, and a unified regulatory framework under the NCC. Approved under a nascent democratic government, the policy marked a decisive shift from state control to competition and market-driven growth.

“Prior to the liberalisation midwifed by the NTP, Nigeria’s telecommunications sector was dominated by the Nigerian Telecommunications Limited (NITEL), which was a government-owned monopoly,” the Commission said. “NITEL was reputably characterized by obsolete equipment, poor quality of service and low teledensity.”

Just as the 1998 framework became obsolete due to global technological changes, the NCC says the 2000 policy now requires a comprehensive overhaul to address today’s realities, including platform-driven digital services, broadband-dependent applications, and emerging non-terrestrial networks.

The policy laid the foundation for the licensing of GSM operators in 2001 and 2002, transforming the market almost overnight. Mobile subscriptions quickly surpassed fixed-line users, revealing massive pent-up demand and market potential.

More significantly, the NTP paved the way for the Nigerian Communications Act 2003, which established a strong statutory and regulatory framework for the sector said. “NITEL was reputably characterized by obsolete equipment, poor quality of service and low teledensity.”

Since then, the telecommunications industry has grown into one of Nigeria’s most vibrant sectors, attracting unprecedented foreign direct investment and contributing significantly to GDP.

The NCC acknowledged that the policy played a central role in enabling e-commerce, digital financial services, and the broader digital economy, marking Nigeria’s transition from a slow-moving, state-controlled telecom sector to a competitive and innovation-driven market.

The NCC’s review proposes targeted updates to several chapters of the policy.

Chapter Seven, covering the Internet, is set for revision to strengthen online safety, deepen internet exchange protocols, and provide clearer guidance on content moderation and digital services operating in Nigeria.

Chapter Eight, on Satellite Communications, will be updated to create a modern framework for satellite harmonisation, upstream and downstream service provisioning, and coexistence between terrestrial and non-terrestrial networks.

The NCC says this will include clearer spectrum mapping to improve service quality and provide cost-effective universal connectivity.

Chapter Ten, on Financing and Funding, will also be revised to address monetary and fiscal measures needed to stimulate sector growth, particularly in the context of ongoing tax and fiscal reforms.

The Commission is seeking stakeholder input on solutions to persistent challenges, including multiple taxation and overlapping regulations.

Beyond revising existing chapters, the NCC proposes a new chapter focused on broadband objectives, protection of critical national communications infrastructure, harmonisation of right-of-way charges across all government tiers, and the introduction of a one-stop permitting process for telecom infrastructure deployment.

Despite significant growth in the sector over the years, high right-of-way costs remain a major barrier to telecom expansion.

These costs not only slow infrastructure deployment but also drive up operational expenses.

According to NCC data, operating costs for telecom operators in Nigeria jumped by 85% to N5.85 trillion in 2024, largely due to right-of-way charges.

The Executive Vice Chairman (EVC), Aminu Maida, who was represented by Rimini Makama, Executive Commissioner for Stakeholder Management, noted that the review of the three regulatory guidelines is aimed at keeping pace with changes in the communications industry.

He said the regulations under review are central to maintaining a competitive communications sector.

The Head of Legal and Regulatory Services (LRS), Chizua Whyte, represented by the Deputy Director of LRS, stated that the NCC is empowered under the Nigerian Communications Act 2003 to develop and amend regulatory instruments as part of its governance of the communications sector.

“Several amendments and new provisions have been made to key instruments, which will be reviewed during this public inquiry, reflecting the Commission’s participatory approach to regulation,” Whyte said.

The communications industry continues to transform in the digital era, driven by technological advances and new connectivity models, underscoring the need for updated, responsive regulatory frameworks.

The regulator emphasized that the 2000 policy was introduced at a time when Nigeria was transitioning from state-controlled telecommunications to a liberalised and competitive market.

The framework replaced an earlier policy and helped dismantle the monopoly of the defunct Nigerian Telecommunications Limited (NITEL), paving the way for private sector participation and market-driven growth.

The NCC, however, said technological innovation and market evolution have now rendered the existing framework outdated, necessitating a fresh approach to address platform-based digital services, broadband-reliant applications, and emerging non-terrestrial networks such as satellite systems.

As part of the reform process, the NCC is proposing updates to multiple sections of the policy, including a revision of the chapter on internet services to strengthen online safety, internet exchange systems, content moderation, and regulation of digital platforms operating in Nigeria.

The commission is also reviewing the satellite communications framework to create clearer guidelines for satellite service provisioning, spectrum mapping, and coordination between terrestrial and non-terrestrial networks.

Another focus is financing and funding, with proposed measures to strengthen fiscal and monetary support for sector growth amid ongoing economic reforms.

The regulator is seeking stakeholder input on tackling persistent challenges such as multiple taxation and overlapping regulations that continue to burden telecom operators.