Streamsowers & Köhn

NIGERIA

Nigeria
Tamuno Atekebo, Otome Okolo and Chukwuyere E Izuogu
Streamsowers & Köhn

Communications policy In accordance with the NCA, a licence applicant must receive a response
to the application within 90 days of submitting it. However, an offer let-
1 Regulatory and institutional structure
ter is normally issued to applicants for a class licence if the application is
Summarise the regulatory framework for the communications complete. For individual licences, depending on the service and complete-
sector. Do any foreign ownership restrictions apply to ness of the required information, the conclusion of the process can take
communications services? between four and 12 weeks.
The duration of a licence depends on the type of service authorised
Nigeria’s communications sector is primarily regulated by the Nigerian or spectrum licensed. The national carrier licence (NCL) and international
Communications Act (NCA) and the Wireless Telegraphy Act (WTA). gateway licence (IGL) are valid for 20 years. The unified access service
The NCA established the Nigerian Communications Commission (NCC), licence is valid for a term of 15 years while a digital mobile licence (DML)
which is charged with the responsibility of regulating the communications authorising the use of a specified mobile spectrum is valid for a term of 15
sector. The Minister of Communications Technology (the Minister) under years. On the other hand, an internet service, paging, prepaid calling card
the NCA is vested with the responsibilities of the formulation, determina- and special numbering services licence are all valid for a term of five years.
tion and monitoring of the general policy for the communications sector in The licence fees payable depends on the type of service. Fees payable are
Nigeria with a view to ensuring, among other things, the utilisation of the fixed by the NCC and published on its website. In addition to licence fees, a
sector as a platform for the economic and social development of Nigeria, prospective licensee is required to pay an administrative charge and, upon
the negotiation and execution of international communications treaties grant of the licence, a licensee shall pay an annual operating levy (AOL)
and agreements, on behalf of Nigeria, between sovereign countries and calculated on the basis of net revenue for network operators and gross rev-
international organisations and bodies, and the representation of Nigeria, enue for non-network operators.
in conjunction with the NCC, at proceedings of international organisations Fixed, mobile and satellite services are regulated and licensed under
and on matters relating to communications. the NCA and to operate any of these services a licence must be obtained
Under the NCA, the NCC is authorised to make and publish regula- from the NCC. As these services are operator-specific, they fall under the
tions and guidelines insofar as it is necessary to give effect to the full provi- individual licence category. In Nigeria, mobile telecommunications ser-
sions of the NCA among other reasons. vices are differentiated on the basis of whether the operator is authorised
The WTA sets out the framework for regulating the use of wireless by a digital mobile licence (DML), fixed wireless access licence (FWAL) or
telegraphy in Nigeria. unified access service licence. A DML authorises an operator to use appro-
Foreign ownership restriction does not apply to the provision of com- priate equipment in a designated part of the electromagnetic spectrum
munications services in Nigeria as a company with foreign ownership, and permits it to operate a network for the provision of public telecom-
as long as it is incorporated in Nigeria, can apply for a licence to provide munications services. In 2001, the NCC licensed four spectrum packages
communications services. Under the Nigerian Investment Promotion in the 900MHz and 1,800MHz bands to Communication Investments
Commission Act, a foreign national can own up to 100 per cent of a Limited, Econet Wireless Nigeria Limited (now Airtel) and MTN Nigeria
business or can invest in any business except those on the negative list. Communications Limited for use in the provision of digital mobile services.
Communications services are not on the negative list. An FWAL authorises an operator to use appropriate equipment in a
designated part of the electromagnetic spectrum for a term of five years
2 Authorisation/licensing regime (with renewal for a further five years) and permits it to operate a network
Describe the authorisation or licensing regime. for the provision of public telecommunications service. FWALs are granted
on a regional basis to reflect the 36 Nigerian states and the federal capi-
Under the NCA, there are two broad licensing frameworks: tal territory, with operators wishing to achieve national coverage required
• an individual licence, which is operator- and service-specific. Some to obtain licences in each of the licensing regions. In 2002, the NCC in
of the activities authorised by an individual licence are: fixed wireless authorising FWAL services also offered 42MHz paired in the 3.5GHz band,
access, unified access services, electronic directory services, internet and a total of 28MHz paired in the 3.5GHz band across the 37 licensing
exchange, international gateway, international cable infrastructure regions of Nigeria to 22 new licensees.
and landing station services, collocation services and commercial In 2007, the NCC in encouraging the roll-out of 3G (IMT-2000) mobile
basic radio communications network services; and service introduced the unified access service licence (UASL) scheme and
• a class licence, which generally authorises a whole class of service allocated 40MHz of paired spectrum in the 2GHz band in four equal blocks
providers to provide a specific service or operate a particular network. of 10MHz paired spectrum. On successful allocation of the spectrum, the
Some of the services subject to a class licence are sales and installa- allottees were issued with a spectrum licence and where necessary, a UASL.
tion of terminal equipment (including mobile cellular phones and HF, In addition, the NCC has indicated an intention to license the entire 2 X 70
VHF/UHF radio, etc), repairs and maintenance of telecoms facilities, MHz slot available in the 2.6GHz band to support the delivery of broad-
cabling services, telecentres/cybercafes and the operation of public band wireless services nationally and will issue a UASL to winners not cur-
payphones. An entity intending to carry out a service subject to an rently holding one. The UASL authorises the holder to provide both fixed
individual licence shall apply to the NCC in the prescribed form upon and mobile services including voice and data, and imposes special condi-
the payment of the processing or administrative fee (usually 5 per cent tions requiring its holders to build and operate a telecommunications net-
of the licence fee) and the licence fee while a person intending to oper- work to provide voice telephony, video services, multimedia services, web
ate under a class licence is to submit a registration notice in the pre- browsing, real-time video streaming, video surveillance, network gaming,
scribed form and a registration fee of 10,000 naira to the NCC. e-mail, SMS, file transfer, broadband data and location-based services, and

[Link] 1
NIGERIA Streamsowers & Köhn

other services that may be authorised, and that the 3G network be built and Spectrum;
operated according to certain defined technical standards.
tower sites;
In the broadband ecosystem, a wholesale wireless access service
licence (WWASL) authorises the holder to construct, maintain, operate and network equipment;
use a network consisting of a mobile communication system, a fixed wire- wholesale broadband/internet access; and
less access telecommunications system, or a combination of any of these Upstream segments wholesale leased lines and transmission capacity
systems comprising radio or satellite or their combination, within Nigeria,
Handsets/devices (includes the device operating
deployed for providing point-to-point or switched/unswitched point-to-
system); and
multipoint communications for the conveyance of voice, data, video or any
Downstream segments applications/content (includes m-commerce)
kind of message. The WWASL also authorises the holder to construct, own,
operate and maintain an international gateway, while an Infrastructure
Company (InfaCo) License authorises the holder to provide and operate The identified markets were further divided into wholesale and retail sub-
on a wholesale basis an open access metropolitan fibre network within a segment as follows:
designated geographical area in Nigeria, in particular among other things,
to construct, maintain, and operate fibre optic network facilities. Upstream Voice Data Downstream
Satellite services in Nigeria are normally authorised by a global mobile segment segment segment segment
personal communications by satellite (GMPCS) licence. In addition to Services
the general conditions applicable to fixed, mobile and satellite services, a provided as
GMPCS licence imposes special conditions requiring the holder to, among wholesale by Wholesale
other things, construct, operate, implement and maintain a GMPCS land an operator Wholesale voice
earth station for the purposes of establishing, maintaining, validating and to other broadband termination on
controlling command functions and communication with the space seg- operators access voice network
ment of a GMPCS system; deploy a GMPCS network for the purpose of Services
providing one-way or two point-to-point or point-to-multipoint communi- provided as Wholesale
cations for the conveyance of voice data or video; sell telecommunications wholesale by leased Wholesale
components and accessories used or intended for use in the installation an operator lines and voice
of GMPCS terminals; install GMPCS terminals; and provide activation, to other transmission termination on
operators capacity fixed network
billing, maintenance and related management services for subscribers to
GMPCS services. Licensing of satellite services continues to be by way of Service
a separate licence. provided as Retail
retail by each Retail voice broadband/ Supply of
individual access on internet access applications,
3 Flexibility in spectrum use
operator to its mobile on mobile content and
Do spectrum licences generally specify the permitted use consumers networks devices devices
or is permitted use (fully or partly) unrestricted? Is licensed Service Retail
spectrum tradable or assignable? provided as broadband/
retail by each internet access
Yes; in line with the Frequency Management Policy (FMP), an applicant individual Retail access on mobile
for a commercial frequency licence from the NCC must also hold a com- operator to its on fixed devices at fixed
mercial operating licence from the NCC (or must have submitted an appli- consumers networks location
cation for an operating licence to the NCC). The commercial operating
Service
licence authorises the provision for a specific service for which the spec- provided as
trum is intended to be used. An applicant for a frequency licence may also retail by each
be given a frequency reservation pending the outcome of the processing of individual
his or her commercial operating licence. However, the frequency licence operator to its Retail leased
will be subject to successful approval of the commercial licence. consumers Lines
Radio frequency spectrum is not tradable. A spectrum licence cannot
be assigned or transferred to a third party either in whole or in part without This study also determined that MTN held and Globacom and MTN col-
the prior approval of the NCC. lectively held significant market power for the mobile voice and upstream
segment respectively. As a result of this conclusion, the NCC (in exercis-
4 Ex-ante regulatory obligations ing its power to remedy anti-competitive practices under the Competition
Which communications markets and segments are subject to Practice Regulations) imposed on MTN as the operator with significant
market power in the mobile voice market the following obligations:
ex-ante regulation? What remedies may be imposed?
• accounting separation; collapse of on-net and off-net retail tariff;
The NCA imposes on the NCC the obligation to promote fair competition • submission of required details to the NCC; and
in the communications industry and to protect communications services • a determination of the pricing principle to address the rates charged
and facilities providers from misuse of market power or anti-competitive for on-net and off-net calls for all operators in the mobile voice market.
and unfair practices by other service or facilities providers or equipment
suppliers. The NCA also authorises the NCC to determine whether a licen- In respect of the joint dominance collectively held by Globacom and MTN
see is in a dominant position in any aspect of the Nigerian communica- in the market for upstream segment, the NCC imposed the following obli-
tions market. Further to this mandate, in April 2013 the NCC undertook gations on both operators: a price cap for wholesale services and a price
a detailed study of the level of competition in the Nigerian communica- floor for retail services as to be determined by the NCC on a periodic basis;
tions market and identified the following broad-based markets subject to accounting separation; and submission of required details to the NCC.
ex-ante competition regulation: This determination took effect from 1 May 2013 and is still in place
until reviewed by the NCC.
Market segment Sub-segment
5 Structural or functional separation
Mobile telephony (including messaging); and
Is there a legal basis for requiring structural or functional
Voice fixed-line telephony
separation between an operator’s network and service
Fixed data, retail data transmission services and activities? Has structural or functional separation been
leased lines; and
introduced or is it being contemplated?
mobile data (eg, dongles, data cards, tablets, internet
through mobile phone connections eg, 3G, GPRS, Licensees are required under the terms of their licence to, within 12 months
Data Edge) of being granted their licences, keep separate accounting records of their

2 Getting the Deal Through – Telecoms and Media 2015

Streamsowers & Köhn NIGERIA

licence commercial telecoms undertakings and their other commercial individual consumer code shall become applicable from the date of its
activities. Also, under the Competition Practice Regulations, the NCC in publication.
issuing a direction to remedy an abuse of a dominant position or an anti- The competition provisions of the NCA and the provisions of the
competitive practice may direct a licensee to make changes in actions or Competition Practice Regulations may limit the application of certain cus-
activities including structural separation of services or businesses, as a tomer terms and conditions deemed to be anti-competitive in the commu-
means of eliminating or reducing the abusive or anti-competitive practice. nications sector. Also, the Regulations on Enforcement Processes require
Based on the outcome of the study of dominance in selected commu- every licensee to submit the contents and representations contained in
nications markets conducted by the NCC, accounting separation has been any promotions of products or services to the NCC for its prior approval.
introduced as a remedy to anti-competitive conducts. Failure to obtain the required approval shall constitute a contravention
under these Regulations.
6 Universal service obligations and financing
Outline any universal service obligations. How is provision of 9 Net neutrality
these services financed? Are there limits on an internet service provider’s freedom to
control or prioritise the type or source of data that it delivers?
The Universal Service Provision (USP) Fund established by the NCA is
Are there any other specific regulations or guidelines on net
geared towards promoting the widespread availability of network ser-
vices and applications services by encouraging the installation of network neutrality?
facilities and the provision of network services and application services There are no express restrictions or limitations on net neutrality or an
in unserved, underserved areas or for underserved groups within the internet service provider’s (ISP) freedom to control or prioritise the type or
community. source of data that it delivers. The Guidelines for the provision of internet
The USP Fund is financed from monies appropriated to the USP Fund service, the licence for the provision of internet service, the UASL and the
by the National Assembly; contributions from the NCC based on a portion WWASL do, however, impose some obligations on the ISP and the holders
of the annual levies paid by licensees; and gifts, loans, aids and such other of these licences. An ISP and the respective licensees are required not to
assets that may from time to time specifically accrue to the USP Fund. In show (whether in respect of charges or other terms or conditions applied
practice, the USP secretariat created by the NCC is responsible for imple- or otherwise) undue preference to or to exercise undue discrimination
menting and executing USP programmes and USP projects. The USP board against any particular person in respect of the provision of a service or the
supervises and provides broad policy directions for the management of the connection of any equipment approved by the NCC.
USP Fund.
10 Next-Generation-Access (NGA) networks
7 Number portability
Are there specific regulatory obligations applicable to NGA
Describe the number portability regime in your jurisdiction. networks? Is there a government financial scheme to promote
The Nigerian Mobile Number Portability Business Rules and Port Order basic broadband or NGA broadband penetration?
Processes (the MNP Business Rules) sets out the regulatory, legal and Yes, in addition to the application of regulatory obligations ordinarily
technical framework for implementing MNP in Nigeria. The NCC has applicable to other category of communications licensee, the holder of the
also issued the Mobile Number Portability Regulations 2014 to provide a WWASL will be required by the licence to, among other obligations, roll
regulatory framework for the operation of MNP in Nigeria. By the terms out services at least as follows: three state capitals in year one, four addi-
of the MNP Business Rules, MNP is obligatory for all MNOs and is cur- tional state capitals in year two, six additional state capitals in year three,
rently available across only GSM networks (although number portability 12 additional state capitals in year four, 12 additional state capitals in year
is intended to be implemented in phases that will cover both CDMA, fixed five and two-thirds of all local government headquarters in the remain-
networks, and location). ing licence period. Also, a WWASL requires the holder to supply customer
Under the MNP Business Rules, MNP is ‘recipient led’. To initiate a premises equipment (CPE) adapted in such as way as to reasonably accom-
porting request, the recipient operator would receive a porting request modate the needs of hearing impaired individuals.
from a subscriber to port their number. The recipient operator, number Notwithstanding the application of the USP Fund for the facilitation
portability clearing house (NPC) and donor operator then exchange mes- of broadband penetration in Nigeria, there are other Commission-initiated
sages to validate the porting request. Porting is free and is normally com- projects such as the Wire Nigeria (WiN) Project aimed at facilitating the
pleted within 48 hours. roll-out of fibre optic cable infrastructure in which subsidies based on per
A port request, however, can be rejected for a number of reasons kilometre of fibre and incentives to encourage rapid deployment of non-
including where the number is not included in the Nigerian numbering commercially viable routes are provided. The State Accelerated Broadband
plan, where the number was ported within the last 90 days, where the Initiative (SABI) is aimed at stimulating the demand for internet services
number is not registered in the Subscriber Information Database, and and to drive affordable home broadband prices where subsidies on ter-
where the number is already subject to a pending port request. minal equipment based on broadband infrastructure deployed in state
capitals and urban and semi-urban centres are provided to operators. Also,
8 Customer terms and conditions under the ongoing Open Access Model for Next Generation Fibre Optic
Are customer terms and conditions in the communications Broadband Network (Open Access Model), there shall be a one-off gov-
sector subject to specific rules? ernment financial support to facilitate the roll-out of the InfraCos. This
financial support will be based on meeting pre-identified targets at certain
Yes, the NCA requires licensees to prepare individual consumer codes for points in time during the roll-out of broadband infrastructure phase.
their respective customers and such consumer code shall be subject to
the prior approval and ratification by the NCC. The individual consumer 11 Data protection
code governs the provision of services and related consumer practices
applicable to the licensee. Where the NCC designates an industry body Is there a specific data protection regime applicable to the
to be a consumer forum, any consumer code prepared by such industry communications sector?
body shall be subject to prior approval and ratification by the NCC. A con- Part VI of the General Code (in appendix I of the Consumer Code) sets out
sumer code prepared by a consumer forum, the NCC or licensees shall as the responsibilities of a licensee in the protection of individual consumer
a minimum contain model procedures for: reasonably meeting consumer information. These responsibilities stipulate that a licensee may collect and
requirements; the handling of customer complaints and disputes includ- maintain information on individual consumers reasonably required for its
ing an inexpensive arbitration process other than a court, procedures for business purposes and that the collection and maintenance of such infor-
the compensation of customers in case of a breach of a consumer code; mation on individual consumers shall be fairly and lawfully collected and
and the protection of consumer information. The Consumer Code of processed; processed for limited and identified purposes; relevant and not
Practice Regulation (the Consumer Code) also requires that the individ- excessive; accurate; not kept longer than necessary; processed in accord-
ual consumer code after its approval by the NCC be published in at least ance with the consumer’s other rights; protected against improper or acci-
two national newspapers (or as the NCC may direct), and the approved dental disclosure; and not transferred to any party except as permitted by

[Link] 3
NIGERIA Streamsowers & Köhn

any terms and conditions agreed with the consumer, as permitted by any NCC organised a VAS summit to address issues mainly raised by WASPAN.
permission or approval of the NCC, or as otherwise permitted or required Subsequent to the VAS summit, the NCC sent out two questionniares to
by other applicable laws or regulations. members of WASPAN. The questionnaires included questions on revenue
Licensees are required by the Consumer Code to adopt similar provi- share, benchmarks, costs, challenges and different aspects of the VAS
sions guaranteeing the same level of protection (or higher) in the produc- industry. Consultation is ongoing between the NCC, WASPAN and other
tion of their own individual consumer codes. shareholders.
In addition, licensees are required by these responsibilities to meet Lastly, the majority of the MNOs operating in Nigeria have sold
generally accepted fair information principles including: providing notice or intend to sell their mobile towers in order to reduce their operating
as to what individual consumer information they collect, and its use or dis- expenditure and divest from non-core assets, thus allowing them to focus
closure; the choices consumers have with regard to the collection, use and, on core telecommunications business.
disclosure of that information; the access consumers have to that informa-
tion, including to ensure its accuracy; the security measures taken to pro- Media
tect the information, and the enforcement and redress mechanisms that
13 Regulatory and institutional structure
are in place to remedy any failure to observe these measures.
Summarise the regulatory framework for the media sector in
12 Key trends and expected changes your jurisdiction.
Summarise the key emerging trends and hot topics in The National Broadcasting Commission Act (the NBC Act) regulates the
communications regulation in your jurisdiction. broadcasting sector in Nigeria. The NBC Act also established the National
Broadcasting Commission (NBC), which is responsible for regulating the
In 2013, the Presidential Committee on Broadband of Nigeria issued the
broadcasting industry. There is also the Broadcasting Code (BC), which
Nigerian National Broadband Plan 2013–2018 (the Broadband Plan). The
was made by the NBC under the NBC Act. The BC represents the mini-
objectives are to promote pervasive broadband deployment, increase broad-
mum standard for broadcasting in Nigeria.
band adoption and usage, and ensure availability of broadband services at
affordable prices. Consistent with the objectives of the Broadband Plan,
14 Ownership restrictions
the NCC engaged industry stakeholders on the future direction of the Next
Generation Broadband Network (NBN) in Nigeria and subsequently con- Do any foreign ownership restrictions apply to media services?
ducted one-on-one sessions with select operators and industry stakeholders Is the ownership or control of broadcasters otherwise
on the strategic objectives for the deployment of nationwide optical fibre restricted? Are there any regulations in relation to the cross-
infrastructure for broadband, as well as to seek their input on the initiative. ownership of media companies, including radio, television and
The consultation eventually produced the Open Access Model. The newspapers?
Open Access Model is based on the principles of nationwide fibre penetra-
tion, non-discrimination and open access, optimised deployment strategy Yes, the ownership of broadcasting networks is restricted. The NBC Act
and cooperation of existing industry operators. The industry structure requires the NBC to satisfy itself when granting a broadcasting licence that
resulting from the proposed Open Access Model consists of three main lay- the applicant can demonstrate to the satisfaction of NBC that he or she is
ers of market operators, which are the passive infrastructure layer (layer not applying on behalf of any foreign interest. The NBC is also prohibited
1) responsible for the design, building and operation of the passive NBN from granting a licence to either a religious organisation or a political party.
infrastructure (eg, roll-out of fibre, maintenance of ducts, handholes and Foreign investors can therefore participate in broadcasting activities, pro-
manholes); the wholesale layer (layer 2) responsible for the design, build- vided that the majority of shares in a broadcasting company are held by
ing and operation of the active NBN infrastructure (eg, terminal equip- Nigerians.
ment, optic fibre electronics, routers, switches, data centres); and retail In terms of cross-ownership in the broadcasting industry, the NBC Act
service providers (RSP) who will purchase bandwidth connectivity from provides that a person is prohibited from having ‘controlling shares in more
wholesale operators and compete with each others in providing competi- than two of each of the broadcast sectors of transmission’. Apart from the
tive and innovative services to end-users. provisions in the NBC Act, there are no regulations or proposed changes
The operators operating in the proposed market structure are: regarding cross-ownership of media companies.
• infracos (layer 1 and layer 2) who will be geographically focused and
provide wholesale layer 2 transmission services on a non-discrimina- 15 Licensing requirements
tory, open access, price-regulated basis. InfraCos may also provide What are the licensing requirements for broadcasting,
layer 1 (dark fibre) services on commercial basis;
including the fees payable and the timescale for the necessary
• wholesale wireless last mile provider (layer 2);
authorisations?
• vertically integrated telco companies consisting of mainly existing pri-
vate telcos operating across the three layers; To operate a radio, sound, television, cable or satellite station in Nigeria,
• national long distance operators (NLDOs) consisting of private com- an application in the prescribed form is addressed to the Director-General
panies that construct, own and operate transmission networks for car- (DG) of the NBC requesting approval to purchase a set of application forms
rying long distance telecommunications services within Nigeria; and indicating the licence category and proposed location. If granted, the appli-
• RSPs who are expected to ride on the wholesale last mile provider to cant would be required to complete the application form and submit it to
provide services to homes, businesses and schools. The open access the DG. The form is accompanied by a certificate of incorporation, a certi-
model will create both the infraco licence and WWASL as new catego- fied copy of the company’s memorandum and articles of association, an
ries of licences. engineering design of systems including feasibility study, a letter of under-
taking to abide by the terms of the licence and a letter of reference from the
Further to the Open Access Model, the NCC has decided to assign by auc- company’s bankers.
tion, one slot of 30MHz nationally available in the 2.3GHz band for the Section 9(1) of the NBC Act sets out the criteria used by the NBC in
delivery of broadband wireless access service at the wholesale level, to the grant of a broadcast licence and these require the applicant to be a cor-
provide ISPs and other RSPs with the requisite bandwidth to service their porate body registered in Nigeria or a broadcasting station owned, estab-
subscribers. The auction took place on 19 February 2014. Presently, the lished or operated by the federal, state or local government. The NBC is
NCC is in the process of selecting infracos for the Lagos and North Central also required to satisfy itself that the applicant is not applying on behalf of
Zones, and has also announced the availability of frequency slots in the any foreign interest. If the NBC is satisfied with the application, it will make
5.4GHz band in all states of the Federation. Also, further to this and to recommendation through the Minister of Information to the President for
meet the objective of the Broadband Plan, NCC has decided to license the the grant of a licence.
entire 2 X 70MHz slot available in the 2.6GHz band to support the delivery The licence fee for an initial term of five years is as follows:
of broadband wireless services nationally. Also, the Wireless Application
Service Providers Association of Nigeria (WASPAN), an industry group
made up of value added service (VAS) providers, has requested better rev-
enue sharing between its members and the MNOs. On 7 August 2014, the

4 Getting the Deal Through – Telecoms and Media 2015

Streamsowers & Köhn NIGERIA

Type Fee (naira)

licence issued by the NBC. The BC also requires the local content for this
category of licence to be 80 per cent. The regulations and conditions gov-
Radio 20 million erning news, programmes, advertising and sponsorship in relation to other
Open TV 15 million forms of broadcasting or broadcast licence are also applicable to internet
Category A Cable TV 10 million
broadcasting.

Radio 15 million 20 Digital switchover

Open TV 11.25 million When is the switchover from analogue to digital broadcasting
Category B Cable TV 7.5 million required or when did it occur? How will radio frequencies freed
Direct broadcast satellite (single channel) 10 million up by the switchover be reallocated?
Direct-to-home (DTH) (multichannel) 25 million The federal government of Nigeria intends that by 17 June 2015, Nigeria
will have attained at least 90 per cent coverage in digital switchover as the
There is no specific timescale for the grant of a licence. deadline for migration to digital broadcasting. The NCC is proposing that
the radio frequencies freed up should be re-allocated to mobile broadband.
16 Foreign programmes and local content requirements
Are there any regulations concerning the broadcasting 21 Digital formats
of foreign-produced programmes? Do the rules require a Does regulation restrict how broadcasters can use their
minimum amount of local content? What types of media fall spectrum (multi-channelling, high definition, data services)?
outside this regime?
Yes. Broadcasters are required to use the spectrum assigned to them in
The NBC Act and the BC regulate the broadcasting of programmes and accordance with the technical specifications and conditions specified in
the minimum local and foreign programme content. Foreign content is their licence.
permissible provided it is essential and relevant to the entertainment, edu-
cation and information of Nigerians. The BC stipulates that a broadcaster 22 Media plurality
relaying foreign content shall ensure the proper acquisition of broadcast- Is there any process for assessing or regulating media plurality
ing rights to such content. In addition, with the exception of special reli- (or a similar concept) in your jurisdiction? May the authorities
gious and sports programmes or events of national importance, Nigerian
require companies to take any steps as a result of such an
broadcasters shall not link up live to foreign programmes.
assessment?
A licensee is required to adhere to a minimum of 60 per cent local con-
tent for open television and 80 per cent local content for radio. The cable/ There are no express provisions respecting media plurality under the NBC
satellite retransmission stations are mandated to reflect a minimum of 20 Act. However, the BC does incorporate some provisions that appear to
per cent local content in their programming. In addition, the NBC issued a support media pluralism. For instance, the BC provides that panellists in
regulation on local content in February 2009, which requires all terrestrial discussion programmes are expected to reflect various viewpoints, and
television stations operating in the country to air only Nigerian local con- for political broadcasts equal airtime shall be provided to all political par-
tent during peak family viewing hours, between 7pm and 10pm. ties or views, with particular regard to the duration and the particular time
There are no specific regulations on broadcast of foreign programmes within which such programmes can be broadcast during political campaign
to mobile devices. periods.

17 Advertising 23 Key trends and expected changes

How is broadcast media advertising regulated? Is online Provide a summary of key emerging trends and hot topics in
advertising subject to the same regulation? media regulation in your country.
Broadcast media advertising is regulated by the NBC Act, the BC, the In 2012, an ad hoc committee was set up to harmonise all the existing poli-
Advertising Practitioners Council of Nigeria Act (the APCON Act), the cies for the different sectors in Nigeria’s ICT industry. A recurring theme
Nigerian Code of Advertising Practice and Sales Promotion and the in the work of the ad hoc committee is the policy recommendation for a
APCON Vetting Guidelines (the Vetting Guidelines). Under the Vetting converged ICT industry in Nigeria. The federal government is presently
Guidelines, any broadcast media advertising material must be submitted considering this policy recommendation.
for approval by the Advertising Standards Panel (ASP) before it is aired. Also, in anticipation of the date for digital migration (see question 20)
By the provisions of the BC, all regulations governing broadcasting and the policy direction of the federal government towards convergence,
including the rules on programmes and advertising shall apply to internet the NBC Act may be reviewed.
broadcasting.
Regulatory agencies and competition law
18 Must-carry obligations
24 Regulatory agencies
Are there regulations specifying a basic package of
Which body or bodies regulate the communications and media
programmes that must be carried by operators’ broadcasting
sectors? Is the communications regulator separate from the
distribution networks? Is there a mechanism for financing the
broadcasting or antitrust regulator? Are there mechanisms to
costs of such obligations?
avoid conflicting jurisdiction? Is there a specific mechanism to
Yes, under the BC a terrestrial subscription service is required to carry a ensure the consistent application of competition and sectoral
free-to-air terrestrial public broadcasting station in its area of coverage free regulation?
of charge. A satellite subscription service is also required by the BC to carry
a free-to-air national public broadcasting station free of charge. As stated earlier (in questions 1 and 13) the NCC and NBC respectively
At present, there is no mechanism for financing these obligations in regulate the communications and broadcast sectors. In Nigeria there is
Nigeria. no competition law of general application, thus the NCC and NBC indi-
vidually regulate competition in their respective sectors. However, merg-
19 Regulation of new media content ers occurring in both the communications and broadcast sectors are also
subject to a review by the Security and Exchange Commission (SEC) in
Is new media content and its delivery regulated differently
accordance with the Investment and Securities Act (ISA). At present, there
from traditional broadcast media? How?
is no mechanism in place to avoid conflicting jurisdiction of the communi-
Internet radio and broadcasting streaming signals from and into Nigeria cations and broadcast sector regulators and the SEC over merger reviews
requires a licence from the NBC. In practice, most of the internet radio occurring in these sectors.
stations operating in Nigeria already have a radio (or other broadcast)

[Link] 5
NIGERIA Streamsowers & Köhn

25 Appeal procedure 26 Competition law in the communications and media sectors

How can decisions of the regulators be challenged and on what Describe the key merger and antitrust decisions in the
bases? communications and media sectors adopted over the past year
by your antitrust authority.
Decisions of federal regulatory and administrative bodies such as the NCC
and NBC are subject to judicial review by the Federal High Court (FHC) As mentioned in question 24, the NCC regulates competition in the com-
and can be litigated up to the Supreme Court. Decisions can be chal- munications sector while competition in the broadcasting sector is regu-
lenged on the grounds of lack of authority, breach of the rules of natural lated by the NBC.
justice, error of law on the face of the record and that the decision has been Some of the key mergers approved by the NCC in recent years are:
obtained by fraud. Under the NCA, a person dissatisfied or whose interest • the approval in principle granted by the NCC in 2013 in the ongoing
is adversely affected by any decision of the NCC must comply with a two- acquisition of Multilinks, Starcomms and MTS wireless by CAPCOM.
stage process within the stipulated time frame, before proceeding to the All the target companies are CDMA operators, operating in the mobile
FHC for a review of the decision of the NCC. A person who is dissatisfied voice market while CAPCOM is a special purpose vehicle set up to
with the decision of the NCC will request the NCC for a statement of the make the acquisition;
reason for the decision. Upon receipt of the NCC statement of reasons, the • the acquisition of Cellcom, Independent Telephone Network (ITN)
person may request the NCC in writing for a review of its decision specify- and Bourdex Telecom by Visafone in 2009; and
ing the reason and basis for its request. The NCC upon receipt of the writ- • the 2011 acquisition of Multilinks by Helios Towers. Multilinks is
ten submission shall meet to review its decision taking into consideration licensed to provide all types of access service under a UASL while
the submission of the dissatisfied person. It is only after the person has Helios Towers is authorised by the NCC to provide infrastructure shar-
exhausted this two-stage process that he or she can proceed to court for a ing and collocation services.
review of the NCC’s decision.
There have been no mergers or acquisitions (or any competition related
issues) in the broadcast sector in the past year.

Tamuno Atekebo tamuno@[Link]

Otome Okolo otome@[Link]
Chukwuyere E Izuogu chukwuyere@[Link]

16D Akin Olugbade Street, off Adeola Odeku Street Tel: +234 1 271 2276 / 3846, 461 1820 / 3582
Victoria Island Fax: +234 1 271 2277
Lagos [Link]
Nigeria

6 Getting the Deal Through – Telecoms and Media 2015