NCC Moves to Enforce Tougher Non-Monetary Sanctions on Telecom Operators over Service Failures and Regulatory Breaches

The Nigerian Communications Commission (NCC) is set to roll out stricter non-monetary sanctions against telecom and ICT operators following persistent regulatory violations and poor quality of service across the industry.

Dr. Aminu Maida, Executive Vice Chairman of the NCC, disclosed the Commission’s new direction in response to ongoing service disruptions, including frequent network outages, poor maintenance of telecom infrastructure, and flagrant disregard for regulatory provisions—particularly by telecom tower companies and other ICT service providers.

Despite years of issuing financial penalties, the NCC found that many operators continued violating rules, viewing monetary fines as mere operational costs. Some companies were even found to have made annual provisions in their financial statements to pay such fines, a trend that has deeply concerned the regulator.

To shift the focus from revenue-driven penalties to actual compliance, the NCC has initiated a review of its Enforcement Processes Regulations (EPR) 2019. A newly released consultation paper outlines five key regulatory proposals that aim to strengthen the Commission’s enforcement powers, ensure fairness, and safeguard industry sustainability.

Key Proposals in the Review:

1. Non-Monetary Administrative Sanctions:
   The NCC plans to restrict licensing privileges and benefits for operators that violate key regulatory conditions. These sanctions will cover infractions related to licensing terms, interconnection debts, and other forms of non-compliance.
2. Expanded Liability for Corrosive Practices:
   The Commission proposes to widen both administrative and criminal liability for offences such as call masking, SIM boxing, and call manipulation—targeting both licensed and unlicensed players in the sector.
3. Clearer Definitions for Fines and Penalties:
   The NCC aims to provide better clarity on general and specific fines listed under Regulations 15 and 16 of the 2019 EPR. This includes a detailed review of the current fine schedule, informed by findings from the 2024 Regulatory Impact Assessment (RIA).
4. Accountability for Boards and Management:
   A critical update will address persistent offenders by introducing regulatory actions that could impact the composition and activities of licensees’ boards and executive management. This will provide clear grounds for when the Commission can intervene at the leadership level.
5. Asymmetric Sanctions Based on Licensee Size:
   To avoid crippling smaller operators, the NCC proposes asymmetric enforcement, where the severity of sanctions is scaled to the size and market strength of the operator. While no exemptions will be granted, this approach ensures fair treatment while maintaining sector stability.

The Commission has opened the consultation process to industry stakeholders to gather feedback before it activates the formal rule-making process in Q3 2025, in accordance with Section 71 of the Nigerian Communications Act (NCA), 2023.

The upcoming review marks the second major overhaul of the EPR since its original issuance in 2009 and its last revision in 2019. According to the NCC, the changes are necessary to close loopholes, ensure effective enforcement, and promote a more compliant and resilient telecommunications industry.

The 2024 RIA revealed that stakeholders are increasingly concerned about the lack of clarity and fairness in current sanctions, as well as the overreliance on financial penalties that do not necessarily drive better service delivery or compliance.

With these proposed reforms, the NCC is aiming to restore service quality, hold operators accountable in more impactful ways, and realign regulatory enforcement with the evolving needs of Nigeria’s digital economy.