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Home » Industry Experts Say NCC Reforms Are Positioned To Unlock Greater Value For Telecom Consumers, Investors
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Industry Experts Say NCC Reforms Are Positioned To Unlock Greater Value For Telecom Consumers, Investors

Soffiyyah OlamideBy Soffiyyah OlamideJuly 21, 2025Updated:July 21, 2025No Comments32 Views
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The ongoing internal reforms at the Nigerian Communications Commission (NCC), led by Executive Vice Chairman Aminu Maida, are being positioned to deliver greater value to consumers and investors in the country’s telecommunications sector.

Since his appointment in October 2023, Maida has prioritised a reform agenda centred on professionalism, data-driven regulation, cost-efficiency, and improved compliance by operators. These reforms, backed by the presidency, are being implemented amid growing operational challenges for telecom companies, rising costs for consumers, and structural concerns within the regulatory environment.

Stakeholders familiar with the development say the reforms are aimed at repositioning the NCC as a responsive, transparent, and forward-facing institution capable of supporting sector-wide recovery and long-term growth.

Reform context and pressures on the industry

The reforms come at a time when operators are navigating one of the most difficult financial periods in over a decade. Key cost drivers—including forex scarcity, inflation, and high diesel prices—have led to a sharp rise in operational expenses. With over 40,000 base stations in the country dependent on generators due to unreliable power supply, telecom companies have seen energy costs increase by more than 300% in recent years.

Diesel prices have surged from about ₦200 per litre to over ₦1,200 per litre, and the weakening of the naira has made it significantly more expensive to import telecom equipment, over 70% of which is sourced internationally.

Despite these headwinds, operators had maintained relatively stable pricing structures for more than ten years. That changed in February 2025 when a 50% tariff increase—approved the previous month—took effect. MTN CEO Karl Toriola described the hike as a “matter of survival,” noting that while revenue rose by 30% in 2024, operational costs increased by as much as 96%.

Internal resistance and reform pushback

While the industry has generally welcomed the focus on regulatory clarity and institutional efficiency, Maida’s reforms have reportedly met resistance within the NCC. Insiders say some staff have opposed the changes, citing concerns over job security and alterations to long-standing practices. Others, however, believe the resistance reflects a deeper discomfort with moves to eliminate internal rent-seeking and enforce merit-based systems.

Nevertheless, the reforms are continuing, with Maida reiterating the commission’s commitment to performance, transparency, and accountability.

According to those close to the process, efforts are also underway to address legitimate staff concerns and ensure a fair and motivated workforce.

Parallel to the internal reforms, a broader legislative review of the Nigerian Communications Act (NCA) 2003 is underway. The Act, which was signed into law 22 years ago, is widely regarded as outdated and insufficient to address today’s digital economy.

The House of Representatives Committee on Communications, working with the NCC and other stakeholders, has initiated a comprehensive amendment process to align the law with current realities. The expected changes include, strengthening NCC’s independence and enforcement powers, integrating provisions for emerging technologies like 5G, AI, and IoT, addressing regulatory overlaps between agencies such as NITDA and NBC, improving consumer protection and grievance resolution, mandating infrastructure sharing and reducing Right of Way (RoW) costs, supporting digital inclusion and rural broadband penetration, harmonising levies and streamlining regulatory processes

These amendments are designed to provide a modern, flexible, and investment-friendly framework that reflects Nigeria’s digital ambitions.

Agenda consumer Industry Investor
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Soffiyyah Olamide

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