The Nigerian Communications Commission (NCC) has announced a sweeping new regulatory framework for Application-to-Person (A2P) messaging services, signaling a bold step toward cleaning up Nigeria’s booming automated messaging ecosystem and securing critical revenue streams.
In a statement released this week in Abuja and reported by The Guardian and BusinessDay, the NCC revealed that all businesses, telecom operators, and aggregators sending bulk messages — such as bank transaction alerts, promotional SMS, and other automated notifications — will now be required to obtain a dedicated licence.
Under the framework, these entities must secure a five-year A2P messaging licence from the NCC, costing N10 million. The framework also mandates centralized routing for all international A2P SMS traffic through NCC-approved channels to curb fraud, improve service quality, and safeguard local telecom revenue.
A Growing Need for Control
A2P messaging has become an essential tool for sectors ranging from banking and fintech to healthcare, travel, and even political campaigning. However, the explosive growth of automated messaging has opened the floodgates to spam, fraud, and unregulated international traffic that has eroded revenue for local operators and created vulnerabilities for consumers.
“It has been observed that the excessive use of 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 enforcing this licensing regime, the NCC aims to strengthen consumer protection, improve transparency, and ensure fair revenue distribution among local stakeholders — especially Nigerian telecom operators who have historically lost income to grey routes and unofficial channels.
Key Highlights of the Framework
Beyond the N10 million licence fee, the new framework introduces strict compliance requirements:
- Data protection and encryption: Licensees must adhere to robust security standards to safeguard user data.
- Regular reporting: Providers must submit periodic reports to the NCC detailing traffic volumes, pricing, and compliance data.
- Interconnectivity: Licensees are obligated to interconnect with other licensed providers and are barred from discriminatory practices that may stifle competition.
- Prohibition of grey routes: The use of unofficial or unauthorized channels — known as grey routes — to deliver SMS is strictly banned.
Additionally, only companies with proven records of ethical practices and secure operations will be granted licences, reinforcing the NCC’s focus on trust and accountability.
Boosting Digital Sovereignty and Cybersecurity
Industry experts note that this framework aligns with Nigeria’s broader agenda of strengthening digital sovereignty and cybersecurity. By enforcing centralized routing and tighter oversight, the NCC aims to ensure sensitive communications are not routed through unmonitored or insecure international pathways, protecting both citizens and the national digital infrastructure.
“This move is crucial for curbing revenue losses and boosting confidence in Nigeria’s digital economy,” said telecom analyst Emeka Umeike in an interview with BusinessDay. “It will help local operators reclaim lost revenues from cross-border messaging traffic and enhance service quality for end-users.”
Impact on Businesses
For Nigerian businesses that rely on A2P messaging, the framework brings greater regulatory clarity but also introduces new operational and financial considerations.
While the N10 million licence fee is manageable for major corporations, smaller enterprises and local messaging aggregators may need to rethink their strategies, potentially opting to partner with licensed providers to maintain service continuity.
Additionally, international messaging platforms can no longer bypass Nigerian networks, ensuring that all A2P traffic is properly accounted for and monetized.
The NCC has called on stakeholders — including mobile network operators, value-added service providers, banks, and the general public — to submit feedback as part of its final consultation phase. Adjustments to the framework may be considered before full implementation.
