Understanding the Recent Business Rules and Regulations by the Nigerian Communications Commission

Contributor: Udoka Janet

Introduction
In accordance with the powers conferred upon the Nigerian Communications Commission, under Section 70 of the Nigerian Communications Act 2003 (the “NCA”), the Commission is empowered to make, issue, and publish rules and regulations on various matters, including but not limited to written authorizations, permits, assignments, and licenses granted or issued pursuant to the NCA^[1]. The NCC has issued a set of business rules and regulations addressing consumer protection, service quality, accountability, and regulatory clarity in the Nigerian telecommunications sector. These rules and regulations are:

1. Consumer Code of Practice Regulations 2024
2. Quality of Service Regulations 2024 (the “NCC Regulations”).
3. Type Approval Regulations 2024
4. Type Approval Business Rules 2024
5. Quality of Service (QoS) Business Rules 2024^[2].
6. The Consumer Code of Practice Regulations, 2024

The new regulations took effect on July 29, 2024, and repealed the previous Consumer Code of Practice Regulations, 2007^[3]. The new regulation is designed to protect consumers by ensuring fair practices and transparency in the communications industry in Nigeria. The Regulations also prescribe the procedures to be followed by a Licensee in:

1. Preparing an approved Consumer Code of Practice by a Licensee in accordance with Section 106 of the Nigerian Communications Act, 2003, and the provisions of the Schedule to these Regulations.
2. Licensees must publish their Consumer Code on their website, in a national newspaper, and on at least one social media platform of their choice within thirty (30) days of receiving approval from the Nigerian Communications Commission (NCC)^[4].
3. Licensees are required to respond to consumer requests for information on their services within 96 (ninety-six) hours^[5];
4. Licensees are to obtain NCC approval 30 (thirty) days before publication of advertisements for goods and services^[6];
5. Licensees are required to retain consumer billing records for a minimum of 2 (two) years, an increase from the 12-month requirement under the 2007 Code^[7]
6. Licensees are required to retain complaint records for at least 2 (two) years following the resolution of such complaint(s)^[8].

The primary objective of these regulations is to establish standardized guidelines for the development and enforcement of Consumer Codes of Practice by communication service providers (“Licensees”). These regulations are designed to safeguard consumer rights, promote fair business practices, and enhance transparency within the industry. The Commission, through these measures, seeks to ensure that Licensees comply with clear and consistent consumer protection standards^[9].

1. Quality of Service Regulations, 2024

The primary objectives of the Regulations are as follows:

1. to protect consumers from unfair practices related to tariffs, charges, service availability, and the quality of communication services and facilities;
2. to identify areas of deficiency and implement corrective measures; and
3. to ensure that adequate information is made available to consumers to enable them to make informed choices regarding services and service providers.

Importantly, these Regulations repeal and replace the Quality-of-Service Regulations, 2013 (the “Repealed Regulations”)^[10]. While we note that the Regulations largely mirror the provisions of the Repealed Regulations, we have outlined below the key changes introduced by the new Regulations:

1. The Regulations authorize the Nigerian Communications Commission (NCC) to establish a Quality of Service (QoS) ranking system for its licensees. This system will be based on the achievement of predetermined thresholds and parameters set by the NCC, ensuring a transparent and objective evaluation of the performance of licensees^[11].
2. The Regulations have expanded the definition of a “Licensee” to include any person who either holds an individual license or engages in activities governed by a class license issued under the NCA. Under the Repealed Regulations, a Licensee was previously defined as any person providing fixed or mobile telephony services within Nigeria^[12]. The New Rules broaden the scope of the Regulations to encompass all holders of licenses issued under the Act. By expanding this definition, a wider range of entities become responsible for upholding service quality, closing potential regulatory gaps, and ensuring that all relevant licensees are subject to consistent standards of compliance^[13].
3. The Regulations grant the National Communications Commission (NCC) the authority to impose administrative fines on Licensees who violate the Regulations or fail to adhere to established standards. Unlike the Repealed Regulations, which did not confer the power to administer administrative fines, the current framework introduces fines as a direct consequence for each instance of non-compliance. Licensees are required to settle these fines within fourteen (14) days of receiving notice from the NCC^[14]. The payment of an administrative fine does not preclude the National Communications Commission (NCC) from pursuing further enforcement actions. The NCC retains the authority to impose additional sanctions as deemed necessary to address serious or repeated violations^[15].
4. The Regulations establish a comprehensive schedule of fines linked to non-compliance with the key performance indicators (“KPIs”).^[16] The penalties for non-compliance with network service KPIs, including those for 2G, 3G, 4G networks, data services, colocation services, and points of interconnect, are set out in the regulations. While the technical aspects of these KPIs are detailed in the Business Rules, the fines for violations range as follows:

(a) ₦5,000,000 to ₦15,000,000 per reporting area for each act of non-compliance;

(b) ₦500,000 to ₦2,500,000 for each day the violation persists^[17].

1. Type Approval Regulations 2024

The Nigerian Communications (Type Approval) Regulations, 2024 (the “TA Regulations”) revokes the Type Approval Regulations, 2008 and Type Approval Guidelines. Notable developments under the TA Regulations are as follows;

1. The NCC may now grant equipment holders^[18], a provisional type approval^[19] for communication prototypes for a trial period (not exceeding 180 days), to encourage research and development^[20]. Type approval (or exemption from type approval) granted by the NCC may be revoked or annulled on additional grounds, including but not limited to the following:

i. the equipment type has a defect that is known or has been reported to the NCC or any other competent authority; and

ii. the equipment type poses a threat to national security or public safety^[21].

1. The establishment of a complaint procedure regarding the operation of any type-approved equipment requires the submission of a formal complaint or objection to the National Communications Commission (NCC), along with any relevant supporting information^[22].
2. The Type Approval Business Rules 2024

These rules, issued pursuant to the TA Regulations 2024, are largely similar to the revoked Type Approval Guidelines. A significant development in the new regulations is the introduction of the NCC Device Management System (NCCDMS), which serves as a Central Equipment Identity Register (CEIR) for device record-keeping. The Business Rules stipulate that all type-approved devices must be registered in the NCC-DMS by the device suppliers^[23].

1. Quality of Service (QoS) Business Rules 2024

The Nigerian Communications Commission (NCC) has officially issued the Quality of Service (QoS) Rules, which establish guidelines for the implementation, monitoring, and effective management of telecommunications quality of service in Nigeria. The QoS Rules delineate the minimum standards and quality requirements, along with the associated measurements and key performance indicators (KPIs) for assessing the quality of service provided by telecommunications operators^[24]. The overall structure of the Draft Quality of Service (QoS) Business Rules, 2023 remains largely unchanged; however, the QoS Rules introduce several modifications and additions, including:

• 1. To reduce the target resolution timeframe for processing requests to block reported lost or stolen SIM cards from the previous duration of thirty (30) minutes to five (5) minutes or less^[25].
  2. Introduction of the QoS Key Performance Indicator (KPI) Index, this document introduces the QoS Key Performance Indicator (KPI) Index (the “QoS KPI Index”) designed to evaluate the performance of mobile operators. The QoS KPI Index will aggregate various Quality of Service (QoS) KPIs published by the National Communications Commission (NCC), providing a comprehensive performance metric that enables subscribers to effectively assess the quality of service offered by telecommunications providers. The Index will consolidate KPIs for voice, data, and SMS across multiple technology generations, including 2G, 3G, 4G, and 5G, as well as various services^[26].
  3. The reporting areas will be categorized into three designated priority groups: Priority 1, Priority 2, and Priority 3. This categorization aims to ensure compliance with the Quality of Service (QoS) Rules. A detailed list of the reporting areas will be provided to Licensees and will be subject to additional regulations issued by the Commission.

Conclusion

In light of the recent updates to the business rules and regulations by the Nigerian Communications Commission (NCC), it is essential for all stakeholders in the telecommunications sector to actively engage with these changes to foster a more transparent, accountable, and consumer-centric environment. The strengthened consumer protection measures, the introduction of a Quality of Service ranking system, and the new Type Approval protocols reflect a significant step towards enhancing service delivery and ensuring compliance across the industry. Licensees must prioritize adherence to these regulations to avoid penalties and maintain consumer trust. Additionally, ongoing training and awareness programs should be implemented to equip industry players with the necessary knowledge to navigate these regulations effectively. By embracing these changes, the telecommunications sector in Nigeria can move towards a more robust framework that not only protects consumer rights but also stimulates growth and innovation within the industry.

SNIPPET

The recent updates to the business rules and regulations by the Nigerian Communications Commission (NCC) make it essential for all stakeholders in the telecommunications sector to actively engage with these changes to foster a more transparent, accountable, and consumer-centric environment.

KEYWORDS

Nigerian Communications Commission (NCC), Consumer Protection, Quality of Service (QoS), Regulations, Business Rules, Type Approval, Compliance, Licensees, Transparency, Accountability, Key Performance Indicators (KPIs), Telecommunications, Service Quality, Consumer Rights, Regulatory Framework

1. Section 70(1a – g) of the NCA. ↑
2. TEMPLARS Client Alert: The Nigeria Communications Commission Issues New Business Rules and Regulations; Ijeoma Uju, Oghomwen Akpaibor 2024. Available at https://www.templars-law.com/app/uploads/2024/08/Client-Alert-The-Nigeria-Communications-Commission-Issues-New-Business-Rules-and-Regulations-.pdf accessed September 2024. ↑
3. Regulation 11 of the Consumer Code of Practice Regulation, 2024. ↑
4. Section 6 (1) of the Nigerian Communications (Consumer Code of Practice) Regulations 2024. ↑
5. Paragraph 6, Schedule of the Nigerian Communications (Consumer Code of Practice) Regulations 2024. ↑
6. Paragraph 21Schedule of the Nigerian Communications (Consumer Code of Practice) Regulations 2024. ↑
7. Paragraph 30 (1) (e) Schedule of the Nigerian Communications (Consumer Code of Practice) Regulations 2024. ↑
8. Paragraph 61 Schedule of the Nigerian Communications (Consumer Code of Practice) Regulations 2024. ↑
9. SPA Ajibade & Co. Nigerian Communications Commission (NCC) Issues Three (3) New Regulations. Available at https://spaajibade.com/wp-content/uploads/2024/08/Nigerian-Communications-Commission-NCC-Issues-Three-3-New-Regulations.pdf Accessed September 2024. ↑
10. Section 20 Communications (Quality of Service) Regulations, 2024. ↑
11.  Section 18 Communications (Quality of Service) Regulations, 2024. ↑
12. Section 1 of the Repealed Regulations. ↑
13. Section 21(1) Communications (Quality of Service) Regulations, 2024. ↑
14. Ibid. ↑
15. Section 19 Communications (Quality of Service) Regulations, 2024. ↑
16. KPIs are indices used to evaluate how effectively an organisation, individual or system (the licensee in this context) is achieving key objectives. It measures the success of the licensees towards specific goals. ↑
17. Schedule to the Communications (Quality of Service) Regulations, 2024. ↑
18. An equipment holder is defined as a provider of communication services, a supplier or manufacturer of communications equipment. ↑
19. Type approval means an authorisation by the NCC to use or supply a type of communications equipment. ↑
20. Section 12(1) and (4) of the TA Regulations. ↑
21. Section 21 of the TA Regulations. ↑
22. Such information includes the (a) name and address of the complainant; (b) name and address, if known of the person against whom complaint is made; and (c) facts, including supporting data, where available, showing that the apparatus does not conform to the TA Regulations, or may cause harmful interference to communications network. See section 25 of the TA Regulations. ↑
23. Rule 15(d) of the Business Rules. ↑
24. “Quality of Service standards” means – (a) parameters, defining the applicable quality of service standards for specific services;(b) the methods of taking measurements that measure service performance against prescribed parameters described as “Measurement Methods” under the Quality of Service Regulations 2024; and (c) any applicable targets for the prescribed parameters identified in the Schedule to the Quality of Service Regulations 2024. ↑
25. Part II (2.0) of the QoS Rules 2024. ↑
26. Part II (4.0) of the QoS Rules 2024. ↑