Connect with us

News

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

info

Published

on

1781663991 admin ajax.png

Stay connected via Google News


Add as preferred source on GoogleAdd as preferred source on Google

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.”

ncc-reviews-ussd-a2p-sms-pricing-in-nigeriancc-reviews-ussd-a2p-sms-pricing-in-nigeria
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.

 

Stay ahead with real-time reports, breaking news, and exclusive insights delivered directly to your phone. Don’t settle for outdated information. Join TECHNOLOGYTIMES NEWS on WhatsApp for 24/7 updates.

Join Our Whatsapp Channel

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Momentum Builds for Historic Grassroots Sports Summit as SSA Adeboye Hosts Successful Abuja Press Conference

info

Published

on

IMG 20261105 WA0083.jpg

The countdown to the National Grassroots Sports Development Summit 2026 gathered fresh momentum on Thursday as the Senior Special Assistant to the President on Grassroots Sports Development, Hon. Adeyinka Anthony Adeboye, hosted a well-attended and successful press conference at the VIP Lounge, National Stadium, Abuja.

The event attracted sports administrators, government officials, representatives of key institutions, journalists and other stakeholders, demonstrating growing interest in the forthcoming national summit.

Read Also: “President Tinubu Is Restoring Confidence in Nigerian Sports” — SSA Adeboye Hails Fulfilment of Super Falcons’ Reward Promise

Among the distinguished personalities present were Comrade Philip Shaibu, Director-General, National Institute for Sports (NIS); Mr. Kumbi Titiloye, Chairman, Kwara United Football Club; and Ms. Seun Ojo, Head, Public Affairs & Public Policy, Nigerian Economic Summit Group (NESG).

Also in attendance were Barr. Musa Ahmadu, Dr. Ademola Are, Chairman, Accommodation and Logistics Sub-Committee; and Dr. (Mrs.) Kehinde Ajayi, Chairperson, Media Sub-Committee, alongside other members of the organising committee and summit sub-committees.

Addressing the gathering, Adeboye emphasised that the summit represents a major opportunity to redefine Nigeria’s approach to grassroots sports development through sustainable structures for talent discovery, participation and advancement.

He stressed that Nigeria possesses enormous sporting talent, but that many promising youngsters remain undiscovered because of inadequate facilities, limited opportunities and the absence of structured development pathways.

“Somewhere in Nigeria today, a future world champion is waiting to be discovered. Our responsibility is to ensure that such a child is not denied the opportunity to succeed simply because of where they were born or their family’s financial circumstances,” he declared.

The Presidential aide commended President Bola Ahmed Tinubu’s commitment to repositioning Nigerian sports, stressing that the recognition of sporting excellence must be complemented by deliberate investment in young talents across Nigeria’s 774 local government areas.

He explained that the summit would bring together government institutions, sports federations, private investors, development partners and other stakeholders to develop an actionable national roadmap.

The participation of Ms. Seun Ojo, representing the Nigerian Economic Summit Group, further underscored the important role of NESG as the summit’s technical partner in shaping discussions around policy, investment and sustainable sports development.

The press conference also featured contributions from members of the Main Organising Committee and an interactive session with journalists on the summit’s objectives and expected outcomes.

Scheduled for November 18–19, 2026, at the Banquet Hall, State House, Presidential Villa, Abuja, the summit, themed “Creating a New Pathway for Sustainable Grassroots Sports Development,” will focus on five strategic pillars: Participation, Talent Development, Infrastructure, Sports Economy and International Pathways.

Adeboye thanked the dignitaries, stakeholders and media representatives for their support, reaffirming his determination to ensure that the summit delivers practical outcomes capable of transforming grassroots sports development in Nigeria.

Continue Reading

Business

FG Backs Risk-Based Capital, Urges Insurance Directors to Move Beyond Passive Compliance

info

Published

on

BY NKECHI NAECHE-ESEZOBOR—The Federal Government has thrown its weight behind risk-based capital in the insurance industry and urged insurance company boards to move from passive regulatory compliance to active oversight.

The government made its position known through the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, at the 2026 Insurance Directors’ Conference, themed “Recapitalisation to Resilience: Leading the Risk-Based Capital Era.” The conference was organised by the College of Insurance and Financial Management (CIFM).

The minister, who was represented by Dr. Greg Ugochukwu Ezeilo, Special Adviser on Fiscal Risk Management and Sustainability, said a resilient insurance industry is indispensable to the country’s economic transformation.

He described insurance as more than a mechanism for compensating losses, calling it an instrument for mobilising long-term capital, enabling productive investment and protecting livelihoods. He said the economy needs an insurance sector able to underwrite emerging risks, support infrastructure financing and strengthen agricultural productivity.

On the transition to risk-based capital, he said insurers must align their capital with the nature, scale and complexity of the risks they take on. He also called for a more forward-looking approach to governance, investment decisions, underwriting practices and enterprise risk management.

“Capital without governance is vulnerable,” he said. He added that governance without accountability is ineffective, and that insurance without public confidence cannot fulfil its economic value.

According to him, the transition places heightened responsibility on insurance company boards. He said directors must move beyond passive regulatory compliance to active oversight and ensure that risk appetite, capital allocation, corporate strategy and institutional capacity are consistently aligned.

He set out five priorities for the industry. The first is strong governance, with visible leadership at the top, independent oversight and transparency, noting that public confidence remains the industry’s most valuable capital. The second is wider access, with affordable, accessible and relevant products for households, small businesses, farmers and underserved communities, so that insurance becomes an everyday instrument of economic security rather than a privilege of a limited market segment.

The third is directing the industry’s long-term funds, under prudent investment frameworks, towards productive investment, infrastructure financing and sustainable economic growth. The fourth is technology and innovation, including big data analytics, machine learning, artificial intelligence and innovative underwriting models, supported by robust cyber security, consumer protection and operational safeguards. The fifth is building capacity to handle emerging risks such as climate-related disruptions, cyber threats, changing demographics and increasingly interconnected financial markets.

He said the Federal Government remains committed to a stable, competitive and inclusive financial ecosystem in which insurance contributes meaningfully to national economic development. He recognised the National Insurance Commission’s role in strengthening regulatory standards, protecting policyholders and guiding the industry through the transition.

He said sustainable reform requires collaboration among regulators, operators, investors and government, and urged stakeholders to see the transition not simply as a regulatory exercise but as an opportunity for strategic transformation.

The ultimate measure of success, he said, is how effectively the industry helps Nigerians absorb shocks, builds confidence and finds progress.

The post FG Backs Risk-Based Capital, Urges Insurance Directors to Move Beyond Passive Compliance appeared first on Business Today NG.

Continue Reading

Trending