NCC Introduces New Licensing Framework For Nigeria's A2P Messaging Ecosystem

The Nigerian Communications Commission (NCC) has unveiled a new licensing framework to address challenges within Nigeria’s Application-to-Person (A2P) messaging ecosystem. This step aims to streamline operations and ensure the sector’s sustainable growth.

A2P messaging is an essential tool in telecommunications, allowing businesses to send SMS or notifications directly to mobile phones. Widely used for marketing, transactional alerts, and service notifications, A2P messaging is integral to the digital economy.

However, Nigeria’s A2P ecosystem has faced significant challenges, such as the lack of unified oversight, revenue leakage, security risks, and market disparities due to unregulated termination rates. These issues have hindered the growth of the sector and created vulnerabilities.

Why Regulation is Crucial

The NCC’s new licensing framework aims to tackle these challenges by promoting fair competition, standardizing tariffs, and enhancing security against fraud, spam, and unauthorized traffic. The framework will also retain revenue through taxation and levies, providing comprehensive oversight to protect both businesses and consumers.

During a virtual stakeholders’ forum on the draft framework, NCC’s Executive Vice Chairman, Dr. Aminu Maida, represented by Mrs. Chizua Whyte, highlighted the importance of A2P messaging for businesses and consumers. “A2P messaging plays a vital role in today’s digital world. It has become the go-to platform for sending transactional, promotional, and service-related notifications,” Dr. Maida stated. He stressed the need for collaboration among government, consumers, and industry players to foster innovation and ensure a fair and secure environment.

Licensing Framework Overview

The proposed framework includes key features such as:

Centralized Routing: International A2P messages must go through a secure platform.
License Fee: N10 million for a renewable five-year license.
Eligibility: Applicants must be Nigerian-registered corporate bodies with agreements with host network operators.
Compliance: Operators must follow data protection laws, encryption protocols, and submit periodic reports.

Benefits of the Framework

This initiative is expected to:

Protect consumers by reducing spam and fraud.
Retain revenue within Nigeria’s economy.
Promote fair competition and transparency in the A2P ecosystem.
Enhance consumer trust by safeguarding user data.

The NCC is inviting feedback from all stakeholders, including operators, businesses, service providers, and consumers, to finalize the framework. This regulatory move promises to create a robust and secure A2P messaging ecosystem, advancing Nigeria’s digital economy.