After 26 Years, NCC Moves to Update Nigeria’s Telecom Policy for Broadband, Satellite and Digital Economy Era

The Nigerian Communications Commission (NCC) has commenced a comprehensive review of the National Telecommunications Policy 2000 (NTP), nearly three decades after its approval, citing rapid technological evolution and shifting market realities that have outpaced the existing framework.

The Commission announced the review on Monday through the release of a consultation paper inviting stakeholders to submit inputs on proposed amendments.

According to the NCC, the objective is to reposition Nigeria’s telecommunications policy to reflect present-day realities in digital services, internet governance, satellite communications, broadband expansion, universal access and critical infrastructure protection — while sustaining the sector’s role as a key driver of economic growth.

Why the NCC Says the Review Is Necessary

The Commission noted that the National Telecommunications Policy 2000 was itself introduced to replace the 1998 framework, which had become obsolete amid rapid global technological changes.

The 2000 policy ushered in full market liberalisation, strengthened stakeholder consultation, and established a unified regulatory structure under the NCC. Approved under Nigeria’s nascent democratic administration, it marked a decisive shift from state control to competition-driven growth.

Before liberalisation, Nigeria’s telecom sector was dominated by government-owned Nigerian Telecommunications Limited (NITEL).

“NITEL was characterised by obsolete equipment, poor quality of service and low teledensity,” the Commission stated.

However, just as the 1998 framework became outdated, the NCC now acknowledges that the 2000 policy requires a comprehensive overhaul to accommodate platform-driven digital services, broadband-dependent applications, artificial intelligence systems, and emerging non-terrestrial networks.

Backstory: How the 2000 Policy Transformed Nigeria’s Telecom Sector

The formulation of the National Telecommunications Policy led to the landmark licensing of GSM operators in 2001 and 2002 — a move that transformed the Nigerian market almost overnight.

Mobile subscriptions quickly outpaced fixed-line users, revealing enormous pent-up demand and market potential.

More significantly, the policy paved the way for the Nigerian Communications Act 2003, which established a strong statutory and regulatory framework for the sector.

Since then, telecommunications has become one of Nigeria’s most vibrant industries, attracting significant foreign direct investment (FDI) and contributing substantially to GDP. The policy enabled the rise of e-commerce, digital financial services, fintech innovation and the broader digital economy.

The NCC acknowledged that the NTP played a central role in Nigeria’s transition from a slow-moving, state-controlled telecom environment to a competitive, innovation-driven market.

Proposed Changes in the Telecom Policy Review

As part of the overhaul, the NCC is proposing targeted revisions to key sections of the policy:

1. Internet Governance (Chapter Seven)

The chapter will be updated to address:

Online safety and digital trust

Stronger internet exchange frameworks

Clearer policy direction on content moderation

Regulation of online platforms and digital service providers operating in Nigeria

2. Satellite Communications (Chapter Eight)

A comprehensive review is planned to:

Establish a modern satellite harmonisation framework

Address upper and lower stream service provisioning

Facilitate coexistence between terrestrial and non-terrestrial networks

Improve spectrum mapping for service quality and cost-effective universal connectivity

3. Financing and Funding (Chapter Ten)

Updates will focus on:

Fiscal and monetary support mechanisms for sector growth

Addressing multiple taxation and regulatory overlaps

Aligning telecom policy with ongoing tax reforms

4. New Broadband and Infrastructure Chapter

The Commission is proposing an entirely new chapter covering:

National broadband objectives

Protection of critical national communications infrastructure

Harmonisation of Right of Way (RoW) charges across federal, state and local governments

Introduction of a one-stop permitting process for telecom infrastructure deployment

Right of Way Costs: A Major Industry Challenge

Despite the sector’s growth, high Right of Way (RoW) charges remain a major bottleneck to infrastructure expansion.

Beyond slowing deployment, excessive RoW fees have significantly increased operational costs for telecom operators.

According to NCC data, operating costs for telecom operators surged by 85% to ₦5.85 trillion in 2024, with Right of Way expenses identified as a major driver.

Industry stakeholders believe that incorporating RoW harmonisation into the revised telecom policy could help unlock broadband expansion, reduce costs and accelerate digital inclusion nationwide.

What This Means for Nigeria’s Digital Future

The policy review signals a strategic recalibration of Nigeria’s telecom governance architecture at a time when connectivity underpins fintech, AI adoption, e-commerce, digital public infrastructure and national competitiveness.

If effectively implemented, the revised policy could strengthen regulatory clarity, stimulate investment, lower infrastructure deployment costs, and position Nigeria more competitively within Africa’s fast-evolving digital economy.