6 Nigerian Telcos in danger of losing their licences

The Nigerian Communications Commission (NCC) recently announced that it is considering the revocation or suspension of licenses of six telecom operators involved in call masking and refilling. This revelation has sparked concerns among industry players and investors about the state of the telecommunications sector in Nigeria. Olusola Teniola, President of the Association of Telecommunications Companies of Nigeria (ATCON), shed light on this issue in a recent interview with CNBC Africa. The issue at hand revolves around the malpractice of call masking and refilling, which has raised security concerns in the country. The NCC has been proactive in addressing this issue, engaging in dialogues with the telecom operators to uncover the root cause of the problem. However, the lack of concrete evidence has left the industry and stakeholders in a state of uncertainty. One of the key concerns highlighted by Teniola is the impact of these practices on national security. The ability of individuals to mask their identities during calls, especially in sensitive situations like instances of kidnapping, poses a significant threat to public safety. The NCC's move to potentially revoke licenses is a clear signal of the seriousness of the situation. In comparison to telecom operators in other parts of Africa, Teniola emphasized the need for more enforcement and clarity in regulatory procedures. The rapid growth of the industry has created opportunities for arbitrage, where certain entities exploit the disparity between international and local termination rates. Such practices not only hinder the sector's growth but also undermine investor confidence in Nigeria's telecommunications market. The impact of these regulatory challenges on investors considering Nigeria as a market cannot be overlooked. With the upcoming sale of NITEL and the expected listing of MTN Nigeria, the uncertainty surrounding the regulatory environment raises red flags for potential investors. However, Teniola reassured that the licenses under threat represent only a small fraction of the overall call traffic, with the majority of calls still flowing through legitimate channels. To address the root cause of the issue, Teniola stressed the need for a clear directive from the regulator on call handling procedures. Establishing a digital address system and implementing digital identification measures can help curb malpractices in the industry. While the threat of license revocation looms, Teniola believes that further dialogue and collaboration between the NCC, telecom operators, and industry stakeholders are essential to finding a sustainable solution. In conclusion, the potential revocation of licenses for telecom operators in Nigeria underscores the pressing need for regulatory reforms and enforcement in the telecommunications sector. As the industry grapples with issues of malpractice and security concerns, collaborative efforts between regulators and industry players are crucial to maintain the integrity and stability of Nigeria's telecom landscape.