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NCC reviews USSD, A2P SMS pricing ‘to reflect Nigeria’s digital economy shift’  – Technology Times

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The Nigerian Communications Commission (Nigerian Communications Commission) has commenced a comprehensive review of pricing frameworks for Unstructured Supplementary Service Data (USSD) and Application-to-Person (A2P) SMS services, as it moves to align Nigeria’s telecoms tariff structure with the rapid evolution of digital services and emerging market realities.

The review is part of a wider regulatory reassessment covering Mobile Termination Rates (MTR), International Termination Rates (ITR), retail pricing structures, and interconnection arrangements, unveiled on Tuesday at the Industry Stakeholder Consultative Forum on the Determination of Mobile Termination Rates in Nigeria held in Lagos.

Speaking at the forum, Omotayo Muhammed, Director of Competition and Tariff at the NCC, said the existing tariff framework no longer adequately reflects the scale and complexity of emerging digital services operating across the telecommunications ecosystem.

According to her, “USSD, MVNO integrations and A2P all operating at scale are not adequately addressed by existing tariff regimes and require formal regulatory treatment.”

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Omotayo Muhammed, Director of Competition and Tariff at the NCC. Image credit: Technology Times/Rilwan Oladapo.

USSD pricing underpins Nigeria’s financial inclusion

USSD remains a critical channel for financial transactions in Nigeria, particularly for unbanked and underserved populations, while A2P SMS has become a core communication infrastructure for banks, fintech companies, government agencies and digital platforms relying on text-based alerts, authentication codes and customer engagement messaging.

The telecoms regulator said the review is necessary because current pricing structures have remained largely unchanged since the last major regulatory determination in 2018, despite significant shifts in technology adoption and service demand.

As part of the study, the NCC will reassess existing USSD pricing floors and caps to determine their relevance under current market conditions. The commission emphasised that USSD continues to play a strategic role in Nigeria’s digital economy by enabling mobile financial services and supporting financial inclusion efforts nationwide.

According to the study scope presented at the forum, “USSD pricing floors and caps underpin mobile financial services and are central to digital inclusion for unbanked and underserved populations.”

The review will also examine the commercial and operational significance of A2P messaging services, which have expanded significantly over the past eight years as enterprises increasingly rely on SMS-based notifications, one-time passwords, transactional alerts and automated customer communications.

The NCC noted that A2P messaging has grown substantially since 2018 and now requires dedicated regulatory attention to reflect its importance in the digital services value chain.

The exercise is taking place against a backdrop of structural changes in the telecommunications industry, driven by new technologies and evolving consumption patterns.

Muhammed said that “5G rollout and AI/IoT adoption are reshaping network usage patterns, cost structures, and service delivery modes, making legacy interconnection frameworks less representative of current realities.”

The regulator also cited the increasing influence of Over-The-Top (OTT) platforms, shifting consumer behaviour, and the emergence of Mobile Virtual Network Operators (MVNOs) as key drivers necessitating a holistic reassessment of telecom pricing architecture.

Beyond USSD and A2P services, the review will also cover Mobile Termination Rates, International Termination Rates, retail price floors and caps, and wholesale access arrangements for MVNOs.

The commission said the overarching objective is to develop a cost-reflective, transparent and evidence-based regulatory framework that promotes investment, strengthens competition and enhances consumer welfare.

According to the NCC, the study will include a full assessment of the existing interconnection regime to identify implementation gaps and areas where current frameworks no longer reflect market realities.

It also plans to propose an updated pricing framework for mobile telecommunications services, encompassing MTR, ITR, USSD services, retail tariffs and MVNO interconnection arrangements.

Speaking on the broader objectives, Wole Adeloku, Partner at KPMG, the consulting firm supporting the study, said the review is designed to encourage investment while ensuring regulatory decisions reflect current industry realities.

He noted that the exercise will involve extensive stakeholder engagement, comparative benchmarking across selected jurisdictions, and the development of forward-looking cost models.

“This study is also meant to encourage investment, support the growth of the sector, and protect the consumer as we do so,” Adeloku said.

He added that the process will rely heavily on industry data contributions to ensure that recommendations are evidence-based and capable of supporting sustainable sector growth.

The NCC expects the outcome of the review to deliver a more transparent and predictable pricing framework that strengthens market competition, encourages long-term investment, and improves access to digital services.

For consumers, the regulator said the reforms are expected to yield pricing structures that better reflect current economic realities, alongside improved access to digital financial services and value-added offerings through clearer USSD and A2P regulatory frameworks.

Ultimately, the commission believes the review will help establish a more balanced telecommunications market while advancing Nigeria’s broader digital economy and financial inclusion objectives.

 

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IMF, World Bank launch Bangkok Blueprint to tackle cyber fraud

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The International Monetary Fund (IMF) and the World Bank, in partnership with the Bank of Thailand, have launched a framework titled ‘Bangkok Bueprint’, which outlines key considerations for tackling cyber-enabled fraud in financial services.

The institutions said the launch was a response to the increasing sophisticated scams around the world which threaten consumer confidence and financial stability.

The framework was launched on the sidelines of the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand.

It seeks to guide policymakers, regulators, financial institutions and other stakeholders in identifying vulnerabilities and developing measures to prevent and respond to digital financial fraud.

Bangkok blueprint

According to the institutions, the growing scale and sophistication of cyber-enabled fraud pose a systemic policy challenge that requires coordinated action across the financial sector and beyond.

The blueprint defines cyber-enabled fraud as the use of digital technologies and psychological manipulation to obtain illicit gains through transactions authorised or unauthorised by victims.

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The lenders noted that while digitalisation has improved efficiency and expanded access to financial services since the 2018 IMF–World Bank Bali Fintech Agenda, it has also increased the scale, speed and sophistication of fraud.

“Large-scale operations—often linked to transnational organized crime—are now generating losses significant enough to affect households and businesses and potentially undermine trust in the financial system,” the framework stated.

They warned that declining confidence in digital financial services could undermine the benefits of financial inclusion, resilience, job creation and economic growth.

12 key considerations

The Bangkok Blueprint outlines 12 key considerations organised around five pillars: establishing strategic and legal foundations; strengthening the fraud-mitigation cycle; leveraging existing risk-mitigation and enforcement frameworks; expanding domestic and cross-border cooperation; and promoting consumer protection and resilience.

National strategies and legal foundations

Under the first pillar, the institutions recommended that countries establish comprehensive national strategies for fraud-resilient digital finance, with clear objectives, accountability arrangements, designated leadership, adequate resources and monitoring mechanisms.

The second consideration called for sound legal, regulatory and supervisory frameworks that empower authorities to allocate liability, protect consumers, share information promptly, and freeze and recover fraud proceeds.

The document revealed that these frameworks should be proportionate to the risks and adaptable to changing fraud methods.

Prevention, detection and recovery

The second pillar contains four considerations focused on strengthening the fraud-mitigation cycle in order to fight cyber fraud.

The third consideration called for safeguards to be embedded in the design of digital financial services, ensuring that fraud prevention is accessible, proportionate and continuously adapted to emerging threats.

The fourth consideration recommended collaborative and adaptive fraud prevention, with financial institutions and other relevant stakeholders identifying vulnerabilities early and working together to disrupt fraudsters and their networks.

The fifth consideration called for a system-wide fraud-detection architecture combining monitoring by individual institutions with ecosystem-level surveillance.

According to the instructions, this should be supported by structured data sharing, enabling protocols and collaborative analytics.

The sixth recommended coordinated response and recovery mechanisms to contain fraud incidents quickly and limit their impact.

These should include preparedness, escalation planning, investigation, and standardised incident reporting across relevant institutions and authorities, the IMF and World Bank’s framework stated.

Cybersecurity, money laundering and law enforcement

The third pillar outlines three considerations for leveraging existing risk-mitigation and enforcement frameworks.

Under the third pillar, the seventh consideration called for stronger cybersecurity regulation, supervision and risk-management arrangements to protect financial service providers, infrastructure and users against cyber-enabled fraud.

The eighth recommended using existing anti-money laundering and combating the financing of terrorism frameworks to strengthen fraud prevention and detection, deprive criminals of illicit gains and disrupt organised criminal networks.

The ninth consideration called for effective law enforcement, proportionate and dissuasive criminal sanctions, and the recovery of criminal proceeds to deter fraud and related money laundering.

The document added that publicising successful law enforcement actions can strengthen deterrence and demonstrate that offenders are being held accountable.

Domestic and international cooperation

The fourth pillar contains two considerations addressing cooperation within and across national borders in the combat targeted at cyber fraud around the global financial systems.

Here, the tenth consideration recommended systematic, risk-based collaboration between public and private sector stakeholders to address vulnerabilities and enable rapid action throughout the fraud-mitigation process.

The eleventh called for cross-border cooperation, coordination and information-sharing arrangements to prevent and mitigate fraud across jurisdictions.

READ ALSO: EFCC arraigns three for allegedly impersonating Tunde Ednut, ₦18.2 million fraud in Abuja

The institutions emphasised that fraud often originates outside the financial sector, including on social media, digital platforms, e-commerce websites and telecommunications networks.

The framework identified central banks, financial regulators, data protection authorities, finance ministries, financial intelligence units, law enforcement agencies, telecommunications providers, digital platforms and financial infrastructures as important participants in this coordinated response.

Consumer protection and awareness

The twelfth and final consideration focused on strengthening consumer protection, empowerment and awareness in the fight against cyber fraud.

The blueprint recommended that existing financial consumer protection frameworks be strengthened to address emerging fraud risks.

It also called for consumers to understand the threats they face, their rights and protections, and the liability, redress and remediation arrangements available when fraud occurs.

The institutions said national authorities should adapt the recommendations to their domestic circumstances, considering differences in legal and regulatory frameworks, institutional capacity, fraud risks and the structure of digital financial ecosystems.

The IMF and World Bank clarified that the Bangkok Blueprint is a non-prescriptive framework and does not constitute formal policy guidance from either institution.


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Even Benchmark thinks AI is eroding the venture pact against backing rivals

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For decades, the unwritten rule of venture capital was that a firm doesn’t back two companies that compete head-on. But speaking at TechCrunch Disrupt earlier this week, the partners of Benchmark readily acknowledged that the AI boom is straining that rule.

It’s been on the verge of snapping for some time. The towering AI labs OpenAI and Anthropic share dozens of the same investors at this point. Then, at the end of September, Factory, a startup that builds an AI agent to write software, said it was firing board observer and adviser Chris Degnan for “unethical conduct involving Cognition,” its direct rival and the maker of the Devin coding agent. Factory’s CEO alleged Degnan had discussed a job at Cognition while privy to Factory’s board-level discussions. Degnan said he had already resigned and denied sharing anything confidential. Soon after, he announced he was joining Cognition as chief revenue officer. Powerhouse investor Vinod Khosla sided with Degnan on X, blasting Factory’s CEO and calling the company “a struggling second tier competitor.” Khosla Ventures backs both companies.

Even Benchmark, a firm whose reputation rests on 10-to-15-year partnerships with founders at the earliest stage, said the old rule can no longer be counted on. Asked at Disrupt whether the pact against backing rivals still holds as portfolio companies expand into each other’s territory, its partners described the conflicts as a matter of necessity, not preference.

“The harsh reality of this world is every company is evolving very quickly,” said Eric Vishria. Companies pivot and change, he said, and “you are going to get conflicts, and that’s just the reality of the current dynamic.”

Vishria said Benchmark stays committed to each founder and keeps what it learns confidential, and he downplayed how much a VC could pass along anyway: “We are not product or technology experts.” Seemingly referring to the Factory-Cognition dispute, he said Benchmark has been fortunate not to land in “that type of insane direct conflict.” Exclusivity, he said, remains “really important” at the very early stage Benchmark favors. “But things are evolving. There’s no doubt about that.”

Chetan Puttagunta said AI is accelerating the problem. As the cost of building software “effectively goes to zero,” he said, founders are “incredibly ambitious.” Because they now see a “surface area” and want to claim all of it, he continued, “[i]t’s probably going to happen more, where you start to run into each other.”

He drew a line between a direct competitor at the outset, which he called “an easy answer,” and a portfolio company that expands into another’s turf over time. “That happens,” he said.

Peter Fenton called the issue “kryptonite” and the firm’s toughest problem. He described a spectrum of how investors relate to their companies. At one end is the co-founder, who would never work on a competing company. At the other is the public-market stock picker, who can own several rivals because he is merely allocating capital, not shaping any of them. Benchmark sits nearer the co-founder end, Fenton said, and treats transparency as a golden rule. “There shouldn’t be the surprise after the fact.” If a conflict does emerge, a founder should never feel shortchanged, he added.

Benchmark isn’t declaring the pact dead. At the same time, when a firm that built its name on loyalty says conflicts are coming, founders might rightly wonder who else will be this candid.

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