The Nigerian Communications Commission (NCC) has introduced a comprehensive regulatory framework for Application-to-Person (A2P) messaging services in a bid to streamline operations, enhance consumer protection, and reduce revenue leakage within the telecoms sector. This move is seen as a strategic effort to sanitize the automated messaging space, which has become essential for sectors ranging from banking and healthcare to e-commerce and political campaigns.
Under the new guidelines, any business, telecom operator, or aggregator delivering bulk SMS—such as bank transaction alerts, promotional messages, or notifications via applications—must obtain a five-year license from the NCC at a fee of ₦10 million. This mandatory licensing regime aims to bring structure to an industry previously plagued by spam, fraud, and unregulated international traffic flows.
One of the most impactful elements of the framework is the requirement for centralized routing of all international A2P SMS. These messages must now pass through NCC-approved channels, ensuring compliance with local regulations, curbing fraud, and improving the overall quality of service. The NCC emphasized the rising risks in the SMS ecosystem, stating, “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.”
A2P messaging plays a vital role in Nigeria’s digital economy. It allows institutions such as banks, fintechs, airlines, and hospitals to send automated, timely information directly to customers. However, the lack of oversight has allowed grey routes—unofficial and often insecure channels—to thrive, undermining both user trust and government revenue. The NCC believes the new framework will bring much-needed transparency and fairness to all players in the value chain, especially local operators who have suffered from untracked international traffic.
In addition to licensing requirements, A2P providers must now comply with several operational obligations. These include:
- Adherence to data protection and encryption standards
- Submission of periodic reports to the NCC, including message volumes and pricing
- Mandatory interconnection with other licensees without discrimination
- A strict prohibition on the use of grey routes
Only companies with a proven track record in ethical and secure operations will be eligible for licenses, the NCC stated. This is in line with broader national goals around digital sovereignty and cybersecurity, ensuring that sensitive communication data does not pass through unauthorized or risky international networks.
For businesses, the framework brings regulatory clarity but also introduces new financial and operational responsibilities. While the ₦10 million fee may be manageable for large corporations, smaller firms and local service providers may find the entry barrier steep. These entities may need to collaborate with licensed operators to remain compliant.
The centralized routing policy also means foreign-based messaging platforms can no longer bypass Nigerian telecom networks—an important step in plugging cross-border revenue losses.
The NCC is currently seeking input from stakeholders, including telecom operators, value-added service providers, financial institutions, and the general public. Final consultations may lead to slight revisions before the framework takes full effect.
