Telecoms: NCC conducts comprehensive ‘cost study’ for fair, reasonable service rates –Official

*Dr. Aminu Maida, Executive Vice-Chairman and CEO, Nigerian Communications Commission, explains Mobile Network Operators’ service rates are determined through the industry regulator’s ‘comprehensive cost study’ that analyses actual costs of providing a service to consumers in the country

Gbenga Kayode | ConsumerConnect

Contrary to insinuations in certain quarters about telecoms providers’ modalities for determining service charges, the Nigerian Communications Commission (NCC) has clarified that service rates are determined through a comprehensive cost study to analyse the actual costs of providing a service to consumers in the ecosystem.

Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of the Commission, stated this during an interactive session with industry reporters Thursday, June 19, 2025, in Abuja, FCT.

ConsumerConnect reports the clarification has become necessary in regard to the latest directive to network providers to commence deducting the N6.98 cost of Unstructured Supplementary Service Data (USSD) from telecoms consumers’ airtime.

The NCC recently directed the Nigerian Deposit Money Banks (DMBs) to discontinue deducting USSD charges from customers’ accounts but their airtime balances.

Maida, however, represented at the interactive forum by Mrs. Nnenna Ukoha, Acting Director of Public Affairs at NCC, explained that telecoms sector regulatory Commission’s cost study usually, considers several factors, including the costs of telecoms infrastructure, maintenance, and personnel of the Mobile Network Operators to arrive at fair and reasonable charges.

He also emphasised how the Commission has played a crucial role in regulating Nigerian telecoms Industry, especially by ensuring the MNOs’ service charges are fair and cost-oriented.

Stressing that service charges are not conjured up, the EVC/CEO stated: “Rates are not simply pulled out of thin air. “Instead, the Commission conducts a comprehensive cost study to analyse the actual costs of providing a service.”

By analysing these costs, the Commission can determine fair and reasonable rates for services, such as USSD charges, he noted.

In response to a question bordering on the USSD in the banking sector, Maida said: “You are asking about the rates, specifically the N6.98 Unstructured Supplementary Service Data (USSD) deduction from airtime recharge.

“Where did we get this figure from? Did we just pull it out of thin air?”

He further stated: “What we normally do at NCC is conduct a cost study before allowing anyone to charge a particular rate.

“This means we analyse how much it costs to provide the service.

“We have done this for USSD charges and are currently conducting a comprehensive cost study.”

The Executive Vice-Chairman of NCC averred: “Once completed, we will issue a determination based on all relevant factors.

“This approach ensures that charges imposed are based on real costs, rather than arbitrary figures.”

Some factors considered in cost study

Shedding more light on the content of the comprehensive cost study, Dr. Maida disclosed the Commission’s cost study considers several factors, including the cost of infrastructure, maintenance, and personnel of the MNOs.

According to him, the telecoms sector, which is liberalised, ensures that any charges or rates imposed are cost-oriented.

Consumer protection remains NCC’s core mandate

Underlining the importance of protecting consumers in the Nigerian telecoms space, Maida said: “Consumers may not directly participate in rate determination discussions, the NCC protects their interests by scrutinising the costs and justifications behind service providers’ proposed rates.

“For instance, if a provider wants to charge a certain rate for calls, they must justify the cost breakdown to us.”

The EVC/CEO of the Commission stated: “This ensures that rates are fair and based on actual costs.

“The level of expertise required for these discussions makes it challenging for ordinary consumers to participate directly.”