NCC Sets ₦250,000 Fee for Interim Telecom Service Authorisation to Boost Innovation

NCC Sets ₦250,000 Fee for Interim Telecom Service Authorisation to Boost Innovation

The Nigerian Communications Commission (NCC) has introduced a ₦250,000 application fee for companies seeking an Interim Service Authorisation (ISA), a temporary licence that allows telecom operators to pilot new services in the live market before full commercial deployment.

The fee is contained in the Commission’s newly released General Authorisation Framework, a regulatory initiative designed to encourage innovation while safeguarding consumer rights within Nigeria’s telecommunications sector.

Explaining the framework, the NCC said it enables startups, technology firms, and existing operators to conduct real-world pilot trials without first obtaining a full telecommunications licence. This, according to the regulator, allows service providers to test technical feasibility, gauge market demand, and manage operational risks, while also giving the Commission an opportunity to assess service quality and potential consumer impact ahead of wider rollout.

Applicants are required to pay the ₦250,000 administrative fee at the point of submission. Successful applicants may also be required to pay additional charges for spectrum allocation and numbering resources, where applicable.

The NCC noted that the framework forms part of its broader efforts to modernise Nigeria’s licensing regime and enhance regulatory flexibility. Announcing the draft framework in July, the Executive Vice Chairman and Chief Executive Officer of the Commission, Dr. Aminu Maida, explained that emerging technologies often fall outside existing licensing categories, necessitating adaptive regulatory approaches.

He said the initiative is aimed at striking a balance between promoting innovation and protecting consumer rights and the public interest.

Under the ISA, authorised operators may test their services under strict conditions, including a cap of 10,000 customers, operations limited to approved locations, and continuous regulatory monitoring. The authorisation is valid for an initial three months and may be renewed once, allowing for a maximum testing period of six months.

To qualify, applicants must demonstrate that their proposed service is innovative or significantly different from existing market offerings. They are also required to explain how current regulations constrain the service, outline consumer protection measures, and submit monthly progress reports throughout the trial period.

The Commission emphasised that while limited regulatory forbearance may apply, all obligations relating to data protection, security, and consumer rights remain fully enforceable. It also clarified that participation in the ISA framework does not guarantee the issuance of a full telecommunications licence, as any transition to commercial deployment will depend on regulatory evaluations and the availability of appropriate licensing categories.

Industry observers believe the framework could fast-track innovation in Nigeria’s telecom sector while minimising the risks associated with unsuccessful service launches.