NCC unveils new license framework for A2P messaging to curb fraud, boost telecom revenue

The Nigerian Communications Commission (NCC) has unveiled a sweeping new regulatory framework for Application-to-Person (A2P) messaging services, introducing mandatory licensing and stricter oversight in a bid to sanitize Nigeria’s fast-growing automated messaging ecosystem and plug persistent revenue leakages in the telecoms sector.

The framework, announced this week, requires all entities—telecom operators, service aggregators, and businesses—that send bulk messages such as bank alerts, promotional SMS, and automated notifications from applications to mobile subscribers, to obtain a compulsory five-year license from the NCC at a cost of ₦10 million.

In a statement, the NCC said the new regime would “ensure transparency, protect consumers from unsolicited messages, improve service quality, and eliminate revenue loss from international traffic routed through grey channels.”

Licensing Requirement: All A2P messaging providers must secure a five-year operational license at ₦10 million.

Centralized Routing: International A2P SMS must be routed exclusively through NCC-approved platforms to ensure proper monitoring and compliance.

Operational Standards: Licensees must adhere to strict data protection, encryption standards, interconnection rules, and traffic reporting obligations.

Ban on Grey Routes: The use of grey routes—unauthorized channels for SMS delivery—is explicitly prohibited.

Eligibility Criteria: Only companies with a verifiable track record of ethical and secure operations will be considered for licensing.

A2P messaging has become a core communication tool across Nigeria’s economy—used widely by banks, fintechs, hospitals, airlines, e-commerce platforms, and political campaigners.

However, the explosive growth in messaging traffic, especially from foreign-based platforms, has exposed the industry to spam, fraud, and regulatory loopholes.

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“It has been observed that 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,” the NCC warned.

The Commission said the unregulated nature of the A2P market had resulted in billions of naira in potential losses from untracked international SMS traffic, with local operators and government coffers missing out on rightful earnings.

The introduction of a centralized routing system, along with the creation of a unified oversight platform, is expected to strengthen NCC’s control over A2P traffic, especially cross-border flows.

The NCC emphasized that the framework is aligned with Nigeria’s broader push for digital sovereignty and improved cybersecurity, ensuring that sensitive communication data does not pass through insecure or unmonitored foreign networks.

According to the Commission, the centralized approach will help reduce scams, protect users’ privacy, and ensure compliance with Nigeria’s data protection laws.

While the ₦10 million license fee may be manageable for large enterprises like banks and telcos, analysts say smaller value-added service providers and message aggregators may face significant financial and technical barriers under the new regime.

Industry observers believe that many smaller players may need to consolidate, partner with licensed providers, or exit the market altogether.

“This is a game-changer for the A2P ecosystem,” said Tunde Salami, a telecom policy analyst. “It introduces long-needed clarity, but also raises the bar for compliance and security. Small firms will have to adapt quickly or risk being edged out.”

The framework also targets foreign-based messaging services that have long bypassed Nigerian telecom infrastructure using grey routes. With centralized routing now mandatory, such platforms will be required to connect via NCC-licensed hubs, thereby ensuring local operators receive due compensation and the government can monitor content and traffic volumes.

“For years, Nigeria has lost revenue from international A2P SMS routed outside of our networks. This new regime closes that loophole,” the NCC stated.

The NCC has opened a consultation window and is inviting feedback from key stakeholders—including mobile network operators, banks, tech firms, fintech companies, and the general public.

The framework will take effect after the conclusion of this final consultation phase. While the NCC indicated that minor amendments could still be made based on stakeholder input, the core structure of the licensing regime is expected to remain intact.

In the coming months, the Commission is also expected to release additional guidelines on implementation timelines, enforcement mechanisms, and penalties for non-compliance.

The NCC’s new framework for A2P messaging marks a pivotal shift in Nigeria’s telecom regulation. While it offers improved consumer protection and revenue assurance, it also demands higher accountability and operational standards from messaging service providers.

As implementation begins, industry players will be closely watching how the rules are enforced and how smaller firms adapt to the changing landscape.