NCC Introduces ₦250,000 Administrative Fee for Telecom Service Testing

 

The Nigerian Communications Commission (NCC) has introduced an administrative fee of ₦250,000 for companies seeking Interim Service Authorisation (ISA), a temporary permit that allows telecommunications operators to test new services before full commercial rollout.

The fee is outlined in the Commission’s newly released General Authorisation Framework, a regulatory initiative designed to promote innovation while safeguarding consumer interests in Nigeria’s telecommunications sector.

Under the framework, startups, technology-focused firms and existing operators introducing novel services may conduct pilot tests in live market environments without first obtaining a full telecommunications licence.

According to the NCC, the approach enables service providers to assess technical feasibility, market demand and operational risks, while allowing the regulator to evaluate service quality and consumer impact prior to large-scale rollout.

Applicants are required to pay the ₦250,000 administrative fee at the point of application. Successful applicants may also incur additional costs for spectrum allocation and numbering resources, where applicable, with such charges separate from the ISA fee.

The Commission explained that the framework forms part of its broader efforts to modernise Nigeria’s licensing regime and introduce greater regulatory flexibility.

NCC Executive Vice-Chairman, Dr.Aminu Maida, who unveiled the draft framework in July, said exploding tech advances had outstripped old licensing models, necessitating reform to foster innovation without skimping on public safeguards. The ISA lets providers gauge technical viability, market appetite, and risks, while regulators scrutinise quality and impact pre-scale-up.

He noted that the initiative seeks to balance innovation with the protection of consumer rights and the public interest.

Operators granted an ISA are allowed to test their services under strict regulatory oversight. Conditions include a maximum of 10,000 customers, operations restricted to approved locations, and continuous monitoring by the Commission.

The authorisation is valid for an initial period of three months and may be renewed once, allowing testing for up to six months.

To qualify, applicants must demonstrate that the proposed service is new or significantly different from existing offerings. They are also required to explain how current regulations constrain the service, outline consumer protection measures, and submit monthly progress reports throughout the testing period.

While temporary regulatory relief may be granted, the NCC stressed that obligations relating to data protection, security and consumer rights remain fully enforceable.

The Commission added that participation in the framework does not guarantee the issuance of a full telecommunications licence, as any transition to commercial deployment will depend on regulatory assessment and the availability of an appropriate licensing category.

Industry stakeholders say the framework could stimulate innovation while reducing the risks associated with failed service launches. By allowing operators to test services before scaling, the NCC aims to encourage experimentation in areas such as spectrum sharing, Open RAN technologies and alternative connectivity models, without compromising service quality.