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Nigeria’s telecom industry seeks legislative safeguards against overregulation

Joy Agwunobi 

NCC identifies telecoms as major driver of Nigeria’s digital economy Stakeholders in Nigeria’s telecommunications sector have reiterated the need for robust legislative frameworks to shield the industry from overregulation and to preserve the independence of the Nigerian Communications Commission (NCC).  This call was made during a panel session held in Lagos as part of a consultative forum organised by the NCC to review and update the Nigerian Communications Act (NCA) of 2003. At the session, industry leaders expressed growing concerns over what they described as increasing regulatory encroachment, particularly from sub-national entities, which they say threatens the seamless delivery of telecom services nationwide. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), underscored the escalating burden posed by overlapping regulations and intervention from state and local governments. He cited the recent case in Kogi State where local agencies disrupted telecom operations, highlighting the urgent need for federal legislation that explicitly bars such interference. “We are witnessing rising pressure from state actors who introduce parallel regulations that conflict with federal laws. Stronger legislative protections are essential to prevent these disruptions, which ultimately affect our ability to offer consistent and reliable communication services,” Adebayo stated. Adebayo also stressed the importance of safeguarding the NCC’s institutional autonomy, especially in critical areas such as pricing and regulatory decision-making. “The independence of the NCC has been a cornerstone of the telecom industry's success in Nigeria. Preserving that autonomy is non-negotiable,” he added. Speaking from the regulatory standpoint, Chizua Whyte,head of legal and regulatory services at the NCC, acknowledged that while the Nigerian Communications Act of 2003 had served as a foundation for sectoral growth, it now required substantial updates to reflect evolving technologies and emerging industry realities. “There’s a need to modernise the Act to cater for new digital dynamics, such as Over-the-Top (OTT) services, and to resolve persistent interconnection issues. The revised legislation should also introduce a distinct chapter addressing communication-related offences and infrastructure protection,” Whyte explained. She further advocated for the integration of innovative licensing frameworks, including smart licensing models, and the imposition of broad-based obligations on service providers to enhance compliance and accountability within the sector. Tobe Okigbo, chief corporate services officer at MTN Nigeria, proposed reforms aimed at encouraging innovation and inclusivity, particularly among startups and young tech entrepreneurs. He recommended adopting a "sandbox" regulatory model or general authorisation regime to provide emerging players with access to data and opportunities to test new solutions in real-market conditions. “By relaxing some of the licensing restrictions, especially for startups, we can unlock a wave of innovation that will drive economic growth and job creation. A sandbox or general authorisation regime would be a game-changer,” Okigbo stated. He also raised calls for strengthening the NCC’s regulatory independence and pointed to the United States’ Federal Communications Commission (FCC) as a potential benchmark. “To ensure long-term effectiveness, the NCC must operate free from political interference. Decisions should be guided strictly by professional expertise and industry realities, not political considerations,” he said. Okigbo went a step further to suggest institutional reforms, urging lawmakers to explore the possibility of merging the NCC with the National Broadcasting Commission (NBC) to streamline regulatory oversight and eliminate duplicative mandates in the converging communications and broadcast landscape. Meanwhile, Damian Udeh, associate director at IHS Nigeria,drew attention to the enduring challenges surrounding service quality in the telecommunications sector, noting that despite noticeable improvements in network performance in recent years, the issue remains a major concern for both operators and consumers. He lauded the NCC’s efforts in making service quality a priority but noted that operators continue to grapple with external constraints such as unstable power supply and infrastructure deficiencies. “We have seen quality improvements  in service delivery, but significant hurdles remain. Greater empathy and collaborative problem-solving from the regulator would help operators overcome some of these persistent challenges,” Udeh noted.