Nigeria announces changes to international termination charges

Nigeria announces changes to international termination charges

National regulator the Nigerian Communications Commission (NCC) has determined a new international termination rate (ITR) for voice services paid by overseas telecom carriers for terminating international calls on local networks in Nigeria. It is to be set at $0.045.

The $0.045 rate is described as the floor price for ITR services. It will take effect from 1 January 2022. The rate is to be paid in US dollars to enable Nigerian operators to receive an increasing rate in naira terms to accommodate devaluation.

The ITR has been denominated in naira until now. This had negative impacts on local operators that were further exacerbated by occasional devaluation of the currency. This, says NCC, moved Nigeria from being a net receiver with respect to international minutes to a net payer.

According to TeleGeography’s CommsUpdate, the ITR for inbound traffic had previously been increased from 3.90 naira ($0.009) to 24.40 naira per minute in October 2016. The rate was maintained at this level from 1 June 2018.

The ITR floor price is the minimum that can be charged. Operators will be free to negotiate a rate above the floor; this will be left to commercial negotiation between operators and international carriers and partners.

The ITR only relates to the cost of bringing traffic into Nigeria. Nigerian operators will continue to pay the regulated mobile termination rate (MTR), the local termination rate, among themselves.

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