Telecom
NCC Blames Exchanges, Others for High Indebtedness
Nigerian Communications Commission (NCC) has attributed the high incidence of interconnection indebtedness in the telecommunications industry to inability of Interconnect exchanges to pay operators interconnect charges, as well as guidelines on disconnect of owing operators.
The commission has also approved the new “Guidelines on Procedure for Granting of Approval to Disconnect Telecommunication Operators” which it said was necessary because the current one approved since 2004 has outlived its usefulness.
Dr. Eugene Juwah, executive vice chairman, NCC who stated this at the regulatory forum on the high incidence of interconnection indebtedness in the telecommunications industry held yesterday in Lagos said that interconnection indebtedness has become a major source of conflict and challenge which has the potential of destabilizing the success recorded in the industry.
“The issue of interconnection indebtedness is peculiar to Nigeria as it has been observed that this problem does not exist in other jurisdictions,” he noted.
He said that it had been observed that some operators took advantage of the provisions of the old guidelines to deliberately refuse to promptly discharge their financial obligations to their interconnect partners.
The NCC chief noted that this was possible because of the processes that had to be followed before the Commission could authorise the disconnection of an operator.
He said that several operators had also noted that Interconnect Exchanges had also become a major part of the problem.
”They now owe other operators interconnection charges, thus compounding the problem they were meant to alleviate. The problem has continued to escalate and the current cumulative debt profile in the industry is worrisome; if the continued high interconnection indebtedness is left unchecked, it will impact negatively on the industry,” Juwah said.
According to him, the provisions of the new guidelines have taken into consideration the disconnection of all operators, including interconnect exchanges, and shortened the process for granting approval for disconnection.
”This is a measure to ensure that interconnection indebtedness is not detrimental to the effective administration of viable telecommunication businesses,” the EVC said.
Yetunde Akinloye, assistant director, Legal and Regulatory Services, NCC, said that interconnection was critical as it enabled subscribers to communicate across and within networks.
Akinloye said that the new guidelines would promote public confidence and ensure stability, transparency, competition, innovation and growth in the telecoms industry.
It would be recalled that Nigeria CommunicationWeek last week reported that telecommunications operators in the country have reverted to the old system of passing traffic directly without going through clearing houses.
At the moment over 90 percent of traffic exchanged by operators in the industry are routed among operators directly without the use of any clearing house.
Uche Onwudiwe, chief operating officer, Interconnect Clearinghouse Nigeria, one of the Nigerian Communications Commission (NCC) licensed clearing house, said that the reappearance of high indebtedness in the telecom sector in spite of establishment of Clearing Houses is as a result of decision of most operators to route their traffic among themselves.
Onwudiwe, said that such operators are claiming that making use of clearing house in routing their traffic is additional cost compared to direct routing of traffic.
A clearinghouse or interconnect exchange is a company or association that transfers billing records and/or performs financial clearing functions between carriers that allow their customers to use each other’s networks.
Association of Licensed Telecom Operators of Nigeria (ALTON), official industry umbrella body and pressure group for major mobile network operators in the country, has faulted claims that foreign direct investments (FDIs) into the sector slumped significantly in quarter one (Q1).
Gbenga Adebayo, Chairman, ALTON
ALTON, said that with N2.13 trillion spent in 2025 on network upgrades and expansion that they would invest an additional N1.86 trillion on network expansion this year.
The body was reacting to the claim by the National Bureau of Statistics (NBS) that FDIs into the sector slumped significantly in quarter one.
The telcos commended the Federal Government for its continued support of the industry, while calling for a more comprehensive framework to track and report investments coming into the sector.
The operators highlighted the importance of accurate data in shaping investor perceptions and guiding policy decisions.
The association noted that while the NBS recently released its Q1 Capital Importation Report, the figures presented do not fully capture the scale of capital deployment within Nigeria’s telecoms industry.
“This disparity between reported foreign capital inflows and actual infrastructure investment highlights a gap in how sectoral capital deployment is currently measured and reported,” the statement read.
ALTON, in the statement, signed by Gbenga Adebayo and Damian Udeh, chairman and publicity secretary, respectively, expressed appreciation to the Federal Government for approving a strategic 50 per cent tariff increase in 2025, describing it as a pivotal intervention that rescued the industry from financial distress.
According to the association, the tariff adjustment restored operational viability, closed critical revenue gaps and enabled operators to reinvest in infrastructure and service quality.
The association emphasised that the policy intervention transformed the sector from a struggling model into a sustainable, growth-focused industry.
“The timely investment enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” ALTON stated.
The statement revealed that telecom operators, tower companies, and other players in the sector recorded a total capital expenditure of N2.13 trillion in 2025. For 2026, planned capital expenditure stands at N1.86 trillion, with funds directed towards network infrastructure expansion, technology upgrades, and operational investments critical to maintaining service quality and coverage.
These commitments, ALTON stressed, are fundamental to advancing Nigeria’s digital economy objectives and improving services for millions of subscribers nationwide.
While the NBS report indicated a sharp decline in foreign capital importation into the telecom sector, from $80.78 million in 2025 to just $7.24 million in Q1 2026, ALTON argued that this metric only reflected a portion of the actual investment activity.
The association explained that much of the sector’s capital deployment now comes from domestic sources, including reinvested operational earnings.
These financial mechanisms, ALTON noted, are not fully reflected in conventional foreign capital importation metrics, thereby painting an incomplete picture of the industry’s health.
To address this reporting gap, ALTON proposed a collaborative engagement among the Nigerian Communications Commission (NCC), the NBS, and the Central Bank of Nigeria (CBN).
The goal, according to the association, is to develop a more inclusive and transparent investment-tracking framework that accurately reflects both foreign and domestic capital flows.
ALTON reassured the Nigerian public that telecom operators remain committed to continuous investment in network expansion, modernisation, resilience and service quality improvements.
The association pledged to work closely with regulators and government institutions to ensure that the sector’s contributions to national development are comprehensively documented and appropriately recognised.
With sustained collaboration and government support, ALTON said Nigerians can expect uninterrupted access to digital services that drive economic growth, innovation, financial inclusion, and overall national development.
Princess Emiko
The regulatory and digital infrastructure pillars of Nigeria’s telecommunications ecosystem, led by the Nigerian Communications Commission (NCC), Digital Realty, and IHS Nigeria, have rallied robust support for the upcoming 2026 Nigeria DigitalSENSE Forum (NDSF) on Internet Governance for Development (IG4D) and its prestigious industry awards.
The annual high-level forum is scheduled to hold this Thursday, June 11, 2026, at the prestigious Banquet Hall, Welcome Centre Hotels, Lagos, anchoring its deliberations on the crucial theme: “Sustaining WSIS Vision with Multistakeholder Synergy in Nigeria.”
The Executive Vice Chairman and CEO of the NCC, Dr. Aminu Maida, is set to deliver the Keynote Address, highlighting the regulatory framework required to preserve the World Summit on the Information Society (WSIS) vision through inclusive, multi-stakeholder partnerships.
Joining the regulatory commission in driving this momentum is IHS Nigeria, the nation’s premier digital infrastructure champion boasting a footprint of over 16,000 telecom towers and 15,000km of fiber optic cables across the country. Alongside data center colocation leader Digital Realty, these organizations are heavily backing the forum as part of their commitment to promoting critical national infrastructure and securing Nigeria’s digital possibilities.
Speaking ahead of the event in Lagos, Ogbuefi Remmy Nweke, the Editor-in-Chief of host media organization ITREALMS Media Group, commended the immense institutional support flowing from the public and private sectors.
“Achieving sustainable internet governance and digital trust requires an intentional alignment of regulation and infrastructure,” Nweke remarked. “The active collaboration of the NCC, IHS Nigeria, and Digital Realty ensures that the 2026 forum will move beyond mere dialogue to produce clear, actionable policy recommendations for our digital economy.”
The event will be presided over by Dr. Olusola Teniola (hon), Director, Strategic Business Initiatives, ipNX Nigeria and former President, Association of Telecommunications Companies of Nigeria (ATCON), who will deliver the Chairman’s Opening Speech on the 2026 NDSF blueprint.
Earlier, leading telecommunications, technology, and internet governance stakeholders have thrown their weight behind the 17th milestone edition of the annual Nigeria DigitalSENSE Forum (NDSF) on Internet Governance for Development (IG4D), including ICT infrastructure leader MTN Nigeria; the Association of Licensed Telecoms Operators of Nigeria (ALTON); premier software and DNS infrastructure firm Upperlink Limited; and the Nigeria Internet Registration Association (NiRA), managers of the .NG country code Top Level Domain name.
Media & Event Contact: The Secretariat Nigeria DigitalSENSE Forum (NDSF) / ITREALMS Media Group Banquet Hall, Welcome Centre Hotels, Lagos Website: www.itrealms.com.ng
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