Two decades ago, the Nigerian Communications Act (NCA) was enacted, marking a significant turning point for the communications landscape and ushering in an era of liberalisation. ADEYEMI ADEPETUN writes that a review of the Act becomes necessary to address new challenges and keep pace with the fast-changing ecosystem.
THE Nigerian Communications Act of 2003, a landmark legislation that triggered significant growth in the country’s telecommunications sector, is currently undergoing a critical review to ensure it remains relevant in the face of rapid technological advancement and evolving industry dynamics.
This review, initiated by the Nigerian Communications Commission (NCC) and the House of Representatives, aims to identify challenges, explore opportunities and chart future directions for a digital Nigeria.
Reasons for the review
THE need to review the NCA 2003, which had 158 sections, 10 chapters and two schedules is extensive. And as experts have stated, Nigeria can no longer regulate smartphones, using a landline framework.
While the journey has started, some of the objectives of this review include adapting to technological evolution, strengthening cybersecurity, addressing regulatory overlaps, enhancing innovation, protecting consumers, bridging divides and promoting digital inclusion among others.
Indeed, the current Act, enacted 22 years ago, needs to be updated to address emerging technologies such as 5G, artificial intelligence (AI), blockchain, and the Internet of Things (IoT). The review seeks to create a regulatory framework that is flexible and adaptable to these changing market conditions.
With the increasing reliance on digital infrastructure, enhancing the cybersecurity framework is a crucial aspect of the review. This includes addressing cyber threats and protecting the National Critical Information Infrastructure (NCII).
Further, the review aims to clarify the roles and responsibilities of different regulatory bodies, particularly the NCC and the National Broadcasting Commission (NBC), to avoid overlapping functions and ensure a better, streamlined regulatory environment. The revised Act is expected to foster innovation within the telecom sector, encouraging the development and adoption of new technologies and services.
Strengthening consumer protection mechanisms is another vital goal of the review, ensuring that the rights and interests of telecom subscribers are adequately safeguarded. The review also seeks to address the persistent challenges of poor power supply, high costs of Right of Way (RoW) approvals, and rising operational costs, which hinder the expansion of digital infrastructure, especially in underserved rural areas.
The new amended act will also ensure improved access to telecommunications services for all Nigerians. It aimed to bridge the digital divide and promote digital inclusion across the country.
Impact of the current Act
THE NCA 2003 played a pivotal role in transforming Nigeria’s telecommunications landscape in many ways, even though it appears archaic now.
Among others, NCA 2003 helped to dismantle monopolies, established a transparent regulatory framework, drove sectoral growth, enabled innovation and expanded access.
Specifically, the Act broke down monopolistic barriers, fostering competition and leading to significant growth in the sector. It empowered the NCC to operate as an independent regulator, creating a transparent and predictable environment for investment and innovation.
The Act helped the telecoms sector to contribute approximately 14 per cent to Nigeria’s Gross Domestic Product (GDP) as of the third quarter of 2024. The Act facilitated the emergence of transformative innovations such as mobile banking, e-commerce, and e-learning, which have fundamentally changed how Nigerians live, work, and interact.
With 1,154 licenses issued in the last two decades of Nigeria’s telecoms revolution, the Act expanded access, enabling mobile subscriptions to grow exponentially, from under 300,000 in 2001 to over 160 million today, while the Internet penetration has also seen a significant surge.
Experts’ submissions
SPEAKING at a colloquium on the matter in Lagos, the Chairman of the House of Representatives Committee on Communications, Peter Akpatason, noted that the 2003 Act is overdue and needs to be assessed and reassessed.
He said that although the NCA 2003 has been instrumental in shaping the country’s telecommunications landscape, 22 years later, it has become essential to reassess its provisions, identify challenges, and explore opportunities for growth and development in the rapidly changing economy.
He explained, “22 years ago, the Nigerian Communications Act was enacted to provide a framework for the regulation and growth of our industry. This digital revolution has opened vast opportunities for Nigerians and changed the way we live, work, and interact. Significant progress has been made in areas like e-commerce, e-medicine, and mobile banking, just to mention a few. Undoubtedly, exponential progress has been recorded in the last 22 years. However, a significant digital divide remains, with many Nigerians lacking access to digital services.
“Therefore, this event aims to review the impact of the Nigerian Communications Act 2003 on the telecommunications sector and identify challenges and opportunities arising from technological advancements and changing market dynamics. We will discuss future directions for a digital Nigeria, leveraging insights from industry experts and stakeholders. We will explore key areas, including regulatory frameworks and their impact on competition and innovation, as well as emerging technologies and their potential applications in Nigeria.
“The new Act must encourage measures to promote innovation, including research and development, innovation hubs, and partnerships with international organisations, as we experienced recently when the committee was sponsored to China by Huawei to study the digital environment there.”
The Speaker of the House of Representatives, Abbas Tajudeen, said the National Assembly would leverage the input of stakeholders to review and renew the NCA 2003, noting that the Assembly had also enacted the Nigerian Data Protection Act of 2023, which has the power to regulate the protection and processing of personal data.
Tajudeen, represented by the Deputy Chief Whip, Isiaka Ibrahim, said, “This law led to the establishment of the Nigerian Data Protection Commission. These laws are in addition to the Money Laundering Prohibition Act of 2022.
“The National Assembly has also passed the Nigerian Startup Act of 2020, which enables the government to create the necessary framework for digital entrepreneurship.”
The NCC EVC, Aminu Maida described the two-decade-old legislation as “increasingly misaligned with 2025 and future realities.”
He highlighted the Act’s transformational legacy, including the rise of mobile subscriptions from fewer than 300,000 in 2001 to over 150 million today, and the telecom sector’s contribution of approximately 14 per cent to Nigeria’s GDP as of Q3 2024.
However, he warned that emerging technologies and growing connectivity disparities have rendered several aspects of the Act outdated.
“Progress is not a destination, but a journey,” Maida stated.
“The industry is experiencing a seismic shift driven by AI, 5G, quantum computing, IoT, and blockchain. Our regulatory framework must evolve just as quickly if we are to maintain momentum and close the digital divide.”
Going forward
SETTING sight on the transformation expected from the review, its outcome is highly anticipated as it will shape the future of Nigeria’s telecommunications sector and its contribution to the nation’s economic and social progress in the digital age.
Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, said there should be periodic review of the NCA 2003. He said the parliament should be a bit mindful of interference coming from other sectors.
According to him, the act is weak on borderline protection, saying there is a need to insulate it from encroachment.
