The Nigerian Communications Commission (NCC) has released a new regulatory framework for Application-to-Person (A2P) messaging services, marking a significant move to sanitize the country’s fast-growing automated messaging space and plug revenue leakages in the telecoms sector.
The framework introduces a mandatory licensing regime for all businesses, telecom operators, and aggregators that deliver bulk messages from applications directly to consumers, such as bank alerts, promotional SMS, and other automated notifications.
Under the new rules, any entity that wants to operate in Nigeria’s A2P messaging space must now secure a five-year licence from the NCC at a cost of N10 million.
The framework also mandates centralized routing for international A2P SMS, meaning such messages must pass through NCC-approved channels to ensure compliance, prevent fraud, and guarantee quality of service.
Why it matters
A2P messaging is a critical tool for banks, fintechs, airlines, hospitals, and even political campaigners, as it allows them to send timely and automated information to users.
However, the lack of formal regulation has led to a proliferation of spam messages, security vulnerabilities, and lost government revenue due to untracked international traffic.
“It has been observed that the excessive use of the Short Message Service has led to fraud, spam and illegal activities. The problem is likely to worsen as mobile connectivity and digital services continue to grow exponentially,” the NCC stated.
By introducing this licensing regime, the NCC said it aims to protect consumers from unsolicited messages, improve transparency in message delivery, and ensure that players in the value chain—especially local telecom operators—earn their fair share from international traffic.
The Commission added that it will have better control over the International A2P SMS traffic, ensuring compliance with regulations and improving market oversight through the creation of a Single Platform.
Key provisions of the framework
Aside from the N10 million licensing fee, the framework sets out other obligations for A2P providers:
- Licensees must comply with data protection and encryption standards.
- They must provide regular reports to the NCC, including traffic volumes and pricing data.
- They are required to interconnect with other licensees and must not block or discriminate against other operators.
- The use of grey routes, unofficial or unauthorized channels used to deliver SMS, is strictly prohibited.
The Commission added that only companies with a proven track record of ethical and secure operations will be considered for licensing.
Additionally, the framework supports Nigeria’s broader goals of digital sovereignty and cybersecurity by ensuring that sensitive communication data is not routed through unsafe or unmonitored international paths.
What does this mean for businesses
For many Nigerian businesses that rely on automated messaging to communicate with customers, the new regime introduces regulatory clarity but also financial and operational obligations.
- While the N10 million licence fee may not be prohibitive for large corporates, smaller firms and local aggregators may face entry barriers or may need to partner with licensed providers.
- With the centralized routing requirement for international SMS, foreign-based messaging platforms will no longer be able to bypass Nigerian networks.
- This move is expected to curb revenue loss from cross-border traffic, which has long been a concern for regulators and local telecom operators.
Meanwhile, the NCC is inviting feedback from stakeholders, including mobile network operators, value-added service providers, banks, and the general public.
The framework is expected to take effect after final consultations, which may lead to minor adjustments.
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