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DECODING THE NCC’S DRAFT BUSINESS RULES FOR MOBILE VIRTUAL NETWORK OPERATORS IN NIGERIA

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BY SEUN TIMI-KOLEOLU AND HILLARY OKOROTIE

Introduction

The Nigerian Communications Commission (“NCC”) recently published the Draft Business Rules for Mobile Virtual Network Operators in Nigeria (the “Draft Rules”), aimed at establishing a comprehensive regulatory framework for the operation of Mobile Virtual Network Operators (“MVNOs”) in Nigeria. The Draft Rules aim to promote transparency in the relationships between MVNOs, Host Network Operators (“HNOs”), and service delivery. The Draft Rules outline key operational obligations, compliance requirements and standards intended to guide the conduct of MVNOs within the Nigerian telecommunications sector.

In this newsletter, we share insights into the impact of the Draft Rules on the operations of MVNOs.

Onboarding and Integration of MVNOs

The Draft Rules establish a structured onboarding and integration framework aimed at minimizing delays in the negotiation, onboarding, and integration processes between MVNOs and HNOs. Under the Draft Rules, every HNO is required to maintain an approved Reference Onboarding Information Pack containing key information and requirements relevant to prospective MVNO partnerships. Upon receiving a request from a licensed MVNO, the HNO is required to acknowledge receipt within ten days and, within twenty days of receiving the required documentation from the MVNO, confirm its readiness to proceed together with an indicative implementation timeline. Where an HNO declines a hosting request, it is required to provide the MVNO and the NCC with a rationale for the refusal within the same twenty days period.

Furthermore, upon confirmation of readiness to proceed, the parties are required to commence negotiations and establish a joint onboarding working group within ten days to oversee implementation. The Draft Rules also prohibit HNOs from unjustifiably and indefinitely delaying the onboarding process. The Rules further provide that commercial and technical agreements relating to onboarding and integration must be concluded within one hundred and twenty days from the date of the formal hosting request.

Commercial Agreements between MVNOs and HNOs

Under the Draft Rules, parties are required to submit any executed commercial agreement relating to MVNO services to the NCC within fourteen days of execution, or within such timeline as may be prescribed by the NCC. In addition, the Draft Rules also impose ongoing obligation to notify the NCC in respect of amendments to existing agreements. Specifically, where parties make changes relating to pricing, onboarding models, numbering arrangements, interconnection architecture, SIM ownership, eSIM enablement, customer migration or termination rights, the NCC must be notified within thirty days of executing such amendments and prior to the implementation of the changes.

The Draft Rules further require that commercial agreements clearly identify the party responsible for key operational obligations, including Know Your Customer (“KYC”) verification, activation approvals, subscriber complaint management, and other compliance responsibilities relating to eSIM services.

Furthermore, existing commercial agreements between MVNOs and HNOs are required to be reviewed in line with the provisions of the Draft Rules within thirty days from the commencement date of the Draft Rules. This transitional period is intended to ensure that existing MVNO operations and contractual arrangements are aligned with the regulatory requirements introduced by the NCC.

The Dispute Resolution Framework Under the Draft Rules

The Draft Rules also introduce a structured dispute resolution mechanism aimed at preventing prolonged commercial and technical disagreements between MVNOs and HNOs. Under the Draft Rules, every commercial agreement must contain a clearly defined escalation ladder, for example technical disputes affecting onboarding of users or service continuity must first be escalated between designated technical leads within five days, while unresolved commercial disputes are to be escalated to executive representatives within ten days.

Where parties are unable to resolve the dispute, either party may refer the matter to the NCC. Importantly, the Rules prohibit retaliatory measures pending the duration of any dispute such as disruption of the service.

Consumer Protection and Quality of Service Obligations

The Draft Rules prohibit HNOs from unfairly limiting or restricting MVNO network traffic, this is aimed at ensuring fair treatment and quality service delivery for MVNO subscribers operating on host networks.

In addition, MVNOs are required to maintain transparent tariff structures, accessible customer complaint channels and effective dispute resolution mechanisms. The Draft Rules also place primary responsibility for subscriber relationships and customer care obligations on MVNOs, notwithstanding their reliance on HNO infrastructure. In delivering their services, MVNOs are further required to comply with the consumer protection standards and regulatory requirements prescribed by the NCC.

Conclusion

The Draft Rules seek to address some of the challenges that affect MVNO operations, particularly onboarding delays, infrastructure access, commercial uncertainty, disputes over operational responsibilities and other operational aspects of MVNOs. When finalized, these Rules will represent a significant step towards establishing a more structured and transparent framework for MVNO operations in Nigeria.

An aspect of the Draft Rules that can be improved upon is with respect to the regulation of quality of service and traffic management. We recommend that the NCC includes detailed guidelines to monitor the quality of service provided by HNOs and traffic management practices with a view to promoting fair treatment of all MVNOs.

For further details on MVNO licensing framework and the various tiers of MVNO licences, please refer to our previous newsletter.

REVIEW OF THE LICENSING FRAMEWORK FOR INTERNATIONAL APPLICATION-TO-PERSON MESSAGING IN NIGERIA (“FRAMEWORK”)

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BY ADERONKE ALEX-ADEDIPE AND HILLARY OKOROTIE

Introduction

On July 8th, 2025, the Nigerian Communications Commission (NCC) published a regulatory framework for licensing international Application to Person (A2P) messaging services in Nigeria. In this newsletter, we highlight some of the salient provisions of the Framework and their impact on the telecommunication sector including the eligibility criteria, application process, and compliance obligations for licence holders.

What is A2P Messaging?

A2P messaging is an internet based messaging service typically used by businesses and organisations in transmitting messages to individuals over mobile networks. It is commonly used to deliver promotional or transactional messages such as marketing campaigns, service announcements, product advertisements, and order updates. The Framework introduces the International Application to Person Messaging Aggregator Licence (“IA2P Aggregator Licence”) that will regulate the provision of these services.

What is the Scope of the IA2P Aggregator Licence?

Key players in the telecommunications industry who currently provide international A2P messaging services will now be required to register with the NCC in order to continue their operations.

According to the NCC, the IA2P Aggregator Licence permits the licencee to provide the following services:

  • Aggregation of international A2P messages on behalf of licenced operators in Nigeria;
  • Provision of transactional messaging services;
  • Delivery of notifications and alerts;
  • Sending of A2P messages; and
  • Provision of subscriber protection mechanisms (opt-in and opt-out mechanisms).

Upon initial approval, the IA2P Aggregator Licence will be valid for a period of five (5) years and may be renewed for an additional five-year term.

The licence fee has been set by the NCC at ₦10,000,000 (Ten Million Naira).

Eligibility Criteria and Technical Requirements for the IA2P Aggregator Licence

To be eligible for the IA2P Aggregator Licence, an applicant must fulfil the following requirements:

  1. Must be a corporate entity registered in Nigeria.
  2. The entity is required to submit a contract with at least one host network operator or national carrier for the provision of international A2P messaging services.
  3. The applicant must also demonstrate financial capacity to cover both capital and operational expenditure of its operations.
  4. In addition, applicants are expected to integrate with local Mobile Network Operators (MNOs) and implement robust systems for fraud detection, security monitoring, and data protection.
  5. All international A2P messaging traffic must be routed through a centralized Short Messaging Service (SMS) firewall or any other technology mandated by the NCC. These technical requirements are aimed at ensuring the integrity of message transmissions and protecting against fraud and other security risks.

What are the Limitations of Licence Holders?

Holders of the IA2P Aggregator Licence are restricted from offering services beyond the specific scope of the licence. They are prohibited from engaging in any activity or providing any service for which they do not hold a valid licence issued by the NCC.

Specifically, licence holders are not permitted to operate transmission networks, switches, external fibre links, or any other infrastructure or services that require separate licensing under existing NCC regulations or other government regulations.

Specific conditions to be observed by Licence Holders

The Framework also outlines specific operational conditions that IA2P Aggregator Licence holders must observe. These conditions are aimed at ensuring regulatory compliance and consumer protection. Licence holders are required to operate in full compliance with the provisions of the Nigerian Communications Act and all other relevant regulations and guidelines issued by the NCC. All messages transmitted must include sender identification, and any message not including a sender identification is to be rejected.

In addition, licence holders must implement appropriate data protection measures. They are also required to provide a functional opt-in and opt-out mechanism that allows individuals to manage their message preferences. The Framework also prohibits the distribution of unsolicited or spam messages to consumers.

Conclusion

Previously, with no framework regulating international A2P messaging services, MNOs independently monetized the service and determined the tariff rates, which resulted in non-uniform termination rates. With the introduction of the Framework, the NCC aims to standardize the delivery of International A2P messaging services in Nigeria and ensure the secure transmission of SMS.

In addition, the Framework provides for the regulation of SMS termination rates, to provide a transparent market for operators involved in international A2P messaging.