NCC Introduces N10 Million License for Bulk Text Message Providers

NCC Introduces N10 Million License for Bulk Text Message Providers

  • The NCC has introduced a new regulation requiring businesses that send bulk international text messages (A2P messages) to obtain a N10 million license
  • The move aims to tackle fraud, prohibit spam, and ensure that money generated from these messages remains within Nigeria’s economy
  • The NCC will also establish a central platform to monitor messages, enforce data protection, and promote transparency, with strict penalties for non-compliance

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian Communications Commission (NCC) has implemented a new regulation requiring businesses that send Application-to-Person (A2P) messages—bulk international text messages—to obtain a N10 million license.

NCC introduces N10 million license
The NCC has introduced a new regulation to obtain a N10 million license. Photo Credit: Contributor
Source: Getty Images

A2P messages are those automatically sent to phones by applications, and they can be found in services such as banks, online retailers, hospitals, and political campaigns.

According to the NCC, the new regulation is aimed at combating fraud, cleaning up the system, prohibiting spam, and ensuring that money stays within the country to contribute to the economy.

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The commission states that the bulk international text message system has been poorly governed for too long.

"The International SMS Service Ecosystem in Nigeria has not been fully brought under regulatory control. It has been observed that the excessive use of the Short Message Service has led to fraud, spam, and illegal activities," the NCC said.

It warned that without intervention, the problem will worsen as mobile phone usage and digital services continue to grow.

To address these concerns, the NCC is establishing a central platform, or gateway, through which all international bulk text messages must pass. This platform will enable the Commission to monitor messages in real time, ensure proper fees are paid, and make sure that the money stays in Nigeria.

Service providers must comply with strict requirements, including robust data protection, spam filters, and message encryption. They must also collaborate with local mobile networks and ensure that all messages come from verified senders. Any message without a proper sender ID will be blocked and not delivered.

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To protect users from unwanted texts, the new rules stipulate that companies must obtain clear permission before sending any promotional content. Individuals must also be given the option to opt out of receiving such messages.

Companies are now required to retain records of all messages for a minimum of six months and must clearly state all charges involved. The NCC stated that fees for help requests, cancellations, or service information must be transparent, with no hidden charges.

Daily Sun reported that the Commission will issue licences to several providers to foster healthy competition but may limit the issuance of new licences if necessary. Only companies that demonstrate the ability to prevent fraud and safely deliver messages will be allowed to operate. They must also regularly report their message traffic and finances to the NCC.

Any company found in violation of the rules faces potential fines, suspension, or even the revocation of its licence. Offences such as charging illegal tariffs, ignoring security requirements, or evading taxes will be penalised, the NCC warned.

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NCC Introduces N10 Million License
Service providers are expected to comply with strict requirements, including robust data protection, spam filters, and message encryption. Photo Credit: Contributor
Source: Getty Images

The Commission added that these new rules align with the Nigerian Data Protection Act 2023 and support the federal government’s goal of enhancing cybersecurity and regulating Nigeria’s digital landscape.

The framework will be reviewed periodically to keep pace with technological advancements and market trends.

Vitel wireless become first mobile virtual network operator

Legit.ng reported that In a historic move, the Nigerian Communications Commission (NCC) has assigned a mobile number series to Vitel Wireless (Vitel), making it the country's first Mobile Virtual Network Operator (MVNO).

The assignment of the 0712 mobile number series to Vitel by the NCC represents a major turning point in Nigeria's telecom industry.

This change highlights the nation's increasing adoption of cutting-edge and affordable telecom options.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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