The Nigerian Communications Commission (NCC) has introduced a mandatory N10 million licence fee for bulk SMS providers offering international messaging services, as part of a broader regulatory overhaul aimed at combating fraud, spam, and capital flight from Nigeria’s telecom sector.
The new regulation targets Application-to-Person (A2P) messages—automated texts typically sent from banks, e-commerce platforms, hospitals, and political organizations to consumers’ mobile phones. According to the NCC, the international bulk SMS ecosystem has operated largely unchecked, resulting in abuse, privacy violations, and financial losses.
“The International SMS Service Ecosystem in Nigeria has not been fully brought under regulatory control. It has been observed that the excessive use of the Short Message Service has led to fraud, spam and illegal activities,” the Commission said in a statement.
To address the problem, the NCC plans to implement a centralised SMS Gateway through which all international A2P messages must be routed. This system will allow real-time monitoring of traffic, enforce accurate billing, and ensure that funds generated remain within Nigeria’s economy.
Under the new framework, licensed providers must:
- Adhere to strict data protection and encryption standards
- Implement robust spam filters
- Partner with local mobile network operators
- Authenticate all messages with a verified sender ID
Messages lacking proper identification will be blocked automatically.
Additionally, the rules require companies to obtain explicit user consent before sending promotional content. Consumers must also be given the option to opt out of such messages at any time.
To enhance transparency, providers must:
- Maintain detailed logs of all messages for a minimum of six months
- Clearly disclose all service charges, including those for support requests, cancellations, or service inquiries
- Avoid any hidden fees
The NCC will issue licences to qualified providers who demonstrate the capacity to prevent fraud, secure user data, and deliver messages reliably. Licensees will be required to submit periodic reports detailing their traffic volumes and financial operations.
Violations—including the use of unauthorized tariffs, failure to follow cybersecurity protocols, or evasion of taxes—could result in fines, suspensions, or outright revocation of licences.
According to the NCC, the new framework aligns with the Nigerian Data Protection Act 2023 and supports the federal government’s commitment to strengthening cybersecurity and managing the country’s digital infrastructure. The guidelines will be periodically reviewed to reflect evolving technologies and market dynamics.
