NCC Plans to Ramp Up Fines for Telecom Operators violating Rules in Nigeria

In a move to encourage stricter regulatory compliance, telecom operators in Nigeria, who have long preferred to pay fines rather than adhere to established regulations, are set to face heftier punishments. The announcement was made by Dr. Eugene Juwah, Vice-Chairman of the Nigerian Communications Commission (NCC), during a forum centered on public grievances pertaining to SIM replacement and enforcement guidelines.

Dr. Juwah told attendees of the forum that more rigorous sanctions are in the pipeline for operators infringing upon guidelines. Major telecom providers operating within Nigeria, who persistently report substantial profits, with a notable contribution from MTN, could be most affected by this change in the sanction system. The Nigerian telecoms market, projected [to generate $10.9 billion by 2019](https://www.techbooky.com/post-title/nigerias-mobile-market-to-generate-10b-with-user-base-to-hit-182-million-by-2020-ventures-africa/), could potentially feel the impact of this enforcement alteration.

Additionally, an estimation situates the value of the Nigerian telecommunication industry at over $25 billion. Contained within this thriving market is Etisalat, the smallest operator in Nigeria in terms of subscribers, which revealed a staggering [revenue of $6 billion last May](https://www.techbooky.com/post-title/etisalat-rolls-out-easylife-4-0-a-flat-tariff-system/). Given this substantial revenue, it’s possible for most companies to easily absorb the cost of basic fines, and this habit of paying over complying has given rise to lax observance of laid down rules.

So, what approach is the NCC taking to tackle this?

There have indeed been murmurs implying that the NCC has not been optimally effective in its regulatory duties. Responding to these, the Vice Chairman of the Commission has come forward with an approach of doubling fines to 10 million Naira (approximately $50,000). He acknowledged that prior fines were minimal and could be effortlessly covered by operators. However, stepping up financial penalties alone is not the endgame, he stated.

“I believe we should go beyond just financial fines and have other forms of punishment in order to maintain the confidence of investors in this sector,” expressed Dr. Juwah. “The most important thing is to maintain a level playing ground for all players.”

Additionally, Dr. Juwah shared the updated statistics revealing that there are now over 146 million active phone subscribers in Nigeria.

To further understand the spread of telecom subscribers in Nigeria, refer to the distribution graph below.