NCC introduces new licensing, regulation framework for A2P messaging

The Nigerian Communications Commission (NCC) on Wednesday unveiled a comprehensive regulatory framework for Application-to-Person (A2P) messaging services, targeting the growing automated messaging sector to curb spam, plug revenue leakages, and enhance telecom sector oversight.

A2P messaging is vital for industries such as banking, fintech, airlines, healthcare, and political campaigns, providing automated communication to users. However, lack of formal regulation has led to rampant spam, security risks, and revenue losses due to unmonitored international traffic.

The Head, Public Affairs Department, NCC, Nnenna Ukoha in a statement stated that under the new framework, all businesses, telecom operators, and aggregators delivering bulk messages from applications to consumers—including bank alerts, promotional SMS, and automated notifications—must obtain a mandatory five-year license from the NCC at a fee of N10 million.

According to Ukoha, the regulation also enforces centralized routing of international A2P SMS, mandating that such messages pass through NCC-approved channels.

“This move aims to ensure regulatory compliance, prevent fraud, enhance quality of service, and safeguard government revenue by tracking international messaging traffic,” the statement added.

The statement stated, “Excessive use of Short Message Service has led to fraud, spam and illegal activities. This problem is expected to worsen as mobile connectivity and digital services grow exponentially.”

Ukoha  explained further that “By introducing this licensing regime, NCC intends to protect consumers from unsolicited messaging, improve transparency in message delivery, and ensure fair revenue distribution to local telecom operators involved in international traffic.

According to the statement, the key framework provisions include: Mandatory licensing with a N10 million fee for A2P service providers, compliance with data protection and encryption standards and regular reporting to NCC on traffic volumes and pricing.

Others are: Interconnection obligations preventing discrimination or blocking among licensees, strict prohibition of grey routes—unauthorized SMS delivery channels, licensing restricted to companies with proven ethical and secure operational records, support for Nigeria’s digital sovereignty and cybersecurity by securing communication data routing.

On implications for businesses, the notice by NCC said the new regulations bring clarity but also operational and financial demands, especially for smaller firms and aggregators that may face entry barriers or require partnerships with licensed entities. Centralized routing will block foreign messaging platforms from bypassing Nigerian networks, addressing longstanding concerns about revenue leakage.

“NCC is seeking stakeholder feedback from mobile operators, value-added service providers, banks, and the public before finalizing the framework. Minor adjustments may be made following consultations,” the statement by Ukoha added.