The Nigerian Communications Commission (NCC) has confirmed that applicants seeking the Interim Service Authorisation (ISA) are required to pay an administrative fee of N250,000, according to the newly published General Authorisation Framework.

This fee must be submitted with the General Authorisation application, alongside any applicable spectrum or numbering charges.

Driving Innovation in Nigeria’s Telecom Sector

The ISA is part of NCC’s modernised licensing framework, which aims to encourage experimentation, foster innovation, and expand opportunities for startups and technology-focused telcos.

The framework allows new operators from early-stage startups to larger firms to trial telecom services in a controlled, sandbox environment before a full market launch. This ensures the commission can evaluate feasibility, manage risks, and verify the quality of service for subscribers.

“Innovation demands a regulatory approach that is not only responsive but enabling,” said Dr Aminu Maida, Executive Vice Chairman of the NCC.

Highlights of the Interim Service Authorisation

The ISA allows operators to test novel services not currently covered by existing licenses, with key features including:

• Proof-of-Concept Pilots: Test new solutions like Open RAN and spectrum-sharing technologies.
• Regulatory Sandbox: Operate and experiment without a full license.
• Controlled Market Testing: Services piloted with around 10,000 customers in approved locations.
• Duration: Initial 3 months, renewable once for a maximum of 6 months (some references indicate up to 9 months).
• Reporting: Mandatory monthly updates to NCC.
• Consumer Safeguards: Data privacy and consumer protection laws remain enforced, even with temporary regulatory exemptions.

Pathway to Full Licensing

The NCC clarifies that the ISA does not automatically lead to a full license. Successful pilots demonstrate feasibility, but formal licensing will require NCC review and approval once a dedicated service category exists.

The framework gives telcos the flexibility to validate innovative solutions, while balancing regulatory oversight, consumer protection, and public interest.

Conclusion

By introducing the N250,000 ISA fee and the Regulatory Sandbox, the NCC is lowering entry barriers for startups and innovative telecom companies to test and refine services before scaling. This initiative is designed to stimulate innovation, improve service quality, and broaden telecom opportunities across Nigeria.