NCC sets ₦250,000 authorization fee for new telcos to test their services

January 26, 2026

NCC sets ₦250,000 authorization fee for new telcos to test their services

Nigeria’s telecommunications sector continues to evolve as regulators adjust licensing structures to reflect emerging technologies and business models.

For a market that has historically balanced rapid private-sector innovation with tight regulatory oversight, changes to entry frameworks matter not only for startups, but also for capital allocation, service quality, and long-term competition within Africa’s largest digital economy.

The Nigerian Communications Commission (NCC) has disclosed that applicants seeking an Interim Service Authorisation (ISA) will be required to pay an administrative fee of ₦250,000.

This requirement is outlined in the General Authorisation Framework recently released by the Commission. The fee is to be submitted alongside the application for General Authorisation, in addition to any applicable spectrum and numbering fees.

The ISA forms part of a broader licensing update introduced by the NCC to accommodate services and technologies not clearly covered under existing regulatory categories.

Under the framework, startups and established firms are permitted to test new telecommunications services in a controlled, real-world environment without first obtaining a full operating licence.

The intent is to allow feasibility testing, risk assessment, and service validation while enabling the regulator to evaluate an operator’s technical and operational capacity before broader market entry.

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What the general authorisation framework introduces

The framework establishes several regulatory instruments, including Proof-of-Concept (PoC) pilots and a Regulatory Sandbox. These mechanisms allow controlled testing of emerging models such as Open RAN and spectrum sharing.

The ISA specifically applies to services that fall outside current licence classifications.

Authorisations are granted for an initial three-month period and may be renewed once, for a total duration of up to six months. Testing is conducted under NCC supervision, in pre-approved locations, with a capped number of participants, approximately 10,000 customers.

Operators are required to submit monthly performance and compliance reports during the testing phase.

According to the NCC, qualifying services must be genuinely novel, with applicants required to demonstrate why existing rules are restrictive and how consumer protection and market integrity will be maintained.

While temporary regulatory exemptions may be granted, data protection and consumer rights obligations remain fully in force.

In July, NCC Executive Vice Chairman Dr Aminu Maida stated that the framework reflects the need for a more flexible regulatory approach as innovation outpaces traditional licensing models.

He noted that the aim is to encourage experimentation while safeguarding public interest.

At the same time, the Commission has been clear that the ISA does not guarantee a full licence. Transitioning from interim authorisation to formal licensing will depend on subsequent regulatory review and the creation of an appropriate licence category.

For Nigeria’s telecom ecosystem, the framework lowers procedural barriers to experimentation but does not remove regulatory scrutiny.

The effectiveness of the model will depend on how efficiently pilot outcomes translate into scalable, licensed services, an area worth watching as more operators enter the sandbox.

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