6 Things to Know About Nigeria’s New Bulk SMS Regulation

The Nigerian Communications Commission (NCC) has rolled out a comprehensive new regulatory framework for digital bulk messaging services (Bulk SMS), particularly targeting Application-to-Person (A2P) messages. These automated texts, which range from bank alerts and online store notifications to hospital updates and political campaign messages, are set for a significant overhaul designed to combat fraud, enhance cybersecurity, and ensure national revenue retention.

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Here are six key aspects of the NCC’s new Bulk SMS Regulation that every Nigerian consumer and business needs to know:

Centralized Gateway for Bulk International Messages:

To address issues of fraud, spam, and revenue leakage, the NCC is establishing a mandatory central platform or gateway. All international bulk text messages (A2P messages) originating from outside Nigeria must now pass through this single approved channel. This measure aims to facilitate real-time monitoring of message traffic, ensure proper fees are remitted, and importantly, keep the revenue generated within Nigeria to contribute to the national economy.

Stricter Licensing and a New N10 Million Fee:

Under the new regulations, only companies demonstrating robust capabilities to prevent fraud and ensure secure message delivery will be granted operational licences for Bulk SMS. This commitment to quality and security comes with a higher entry barrier: new operators in this space will now be required to pay a licence fee of N10 million for a five-year tenure. This move is expected to streamline the industry and encourage more serious players.

Enhanced Data Protection and Security Mandates:

Service providers are now bound by strict rules designed to protect consumers. These include implementing strong data protection protocols in line with the Nigerian Data Protection Act 2023, utilizing effective spam filters to reduce unsolicited messages, and ensuring message encryption to safeguard sensitive information. This aligns with the federal government’s broader goal of strengthening cybersecurity and controlling Nigeria’s digital space.

Verified Sender IDs and Collaboration with Local Mobile Networks:

A crucial new requirement is that all messages (Bulk SMS) must originate from a verified sender ID. Service providers are mandated to work closely with local mobile networks to ensure this authentication. The NCC has issued a stern warning that any message without a proper sender ID will be automatically blocked and will not be delivered to users, tackling anonymous and potentially fraudulent messages.

 Explicit Consent for Promotional Content:

To protect users from unwanted texts and ensure their privacy, the new rules stipulate that companies must obtain clear and explicit permission from recipients before sending any promotional content. This is a significant step towards combating unsolicited commercial communications and giving consumers more control over the messages they receive.

Penalties for Non-Compliance and Continuous Review:

The NCC has warned that any company found in breach of the new rules risks severe penalties, including fines, suspension of operations, or outright revocation of their operating licence. Offences such as charging illegal tariffs, ignoring security rules, or avoiding taxes will be met with decisive punitive measures. The commission also affirmed its commitment to maintaining regulatory dynamism, noting that the Bulk SMS framework will undergo periodic reviews to keep pace with new technology and evolving market trends.

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