The Nigerian Communications Commission (NCC) has rolled out a new regulatory framework requiring companies that send bulk international SMS, also known as Application-to-Person (A2P) SMS, to obtain a mandatory licence costing ₦10 million.
According to the commission, the measure, which comes into immediate effect, is part of a wider push to fight fraud, block spam, prevent illegal digital charges, and stop capital flight from Nigeria’s telecommunications ecosystem.
According to the NCC, the bulk international text message system has been poorly regulated for too long.
“The Commission hereby introduces the International Application-to Person (A2P) Messaging Aggregator Service Licence as part of measures to enhance regulatory oversight, security of service and quality of service in the delivery of international A2P messaging traffic into Nigeria,” the NCC said on its website.
What This Means
Under the new directive, any organisation sending automated international SMS messages, such as banks, ecommerce platforms, hospitals, or political campaigns, must now route all communications through a centralised platform operated by the NCC.
According to the Commission, the platform will enable the NCC to monitor all message traffic in real-time, ensure only verified sender IDs are used, enforce transparent billing, and guarantee that revenues generated from international SMS services remain within the country.
Why It Matters
For years, Nigeria’s international bulk SMS segment operated with little regulatory oversight, allowing foreign platforms to profit from Nigerian traffic without remitting appropriate fees or taxes.
The NCC believes that bringing the segment under regulatory control will not only reduce fraud but also protect consumers, and support national security objectives in line with the Nigerian Data Protection Act 2023.
“The Licence will provide a structured and transparent framework for managing the flow of international messaging traffic through the Commission’s authorised platform,” NCC noted.
Is the Regulation Necessary?
The NCC insists that the regulation is essential to restore trust in Nigeria’s digital communication system. According to the Commission, unchecked international messaging has allowed fraudsters to thrive, often impersonating banks or agencies to steal from unsuspecting users.
It said the regulation will not only eliminate illegal SMS traffic but also improve accountability, and ensure that legitimate operators compete on a level playing field. The framework is also aligned with global best practices for telecom regulation and digital sovereignty.
About the New Compliance Requirements
The NCC has made it clear that any company that violates the rules risks fines, suspension, or full revocation of their operating licence. To comply with the new framework, companies must:
- Obtain user consent before sending promotional messages
- Allow recipients to opt out at any time
- Retain records of all messages for at least six months
- Clearly disclose all charges for services such as cancellations, balance checks, or customer support
- Guarantee secure delivery by working with local networks and adhering to strict data protection guidelines
Understanding the A2P SMS Ecosystem
Application-to-Person (A2P) SMS refers to automated text messages sent from software systems to users’ phones.
These are the messages you receive from financial institutions about transactions, delivery updates from ecommerce services, appointment reminders from hospitals, or campaign messages from political parties.
Unlike peer-to-peer SMS (texts sent from one person to another), A2P messaging is designed for mass communication and is essential to how businesses and institutions engage with their customers at scale.
Talking Points
The NCC’s introduction of a ₦10 million licence fee for international A2P SMS providers marks a significant step toward regulating a largely unchecked corner of Nigeria’s digital ecosystem.
At Techparley, we see this move as a critical effort to curb capital flight, ensure revenue retention, and protect users from rising threats of spam, phishing, and digital fraud.
For years, international bulk SMS channels allowed foreign service providers to monetise Nigerian traffic with minimal oversight. This regulation changes that dynamic, placing data sovereignty and national cybersecurity at the heart of digital policy.
The centralised routing system offers the NCC a real-time view of message traffic, while verified sender IDs and mandatory user consent strengthen consumer protection and platform accountability.
Critics may argue that the ₦10 million licensing cost could limit competition, but the NCC’s emphasis on transparency, fair play, and national interest suggests a calculated effort to prioritise safety over scale.
We believe this framework, if fairly enforced, could signal a new era of telecom regulation in Nigeria, one where trust, value retention, and consumer safety become non-negotiable pillars of digital engagement.
