The Nigerian Communications Commission's spectrum pricing policy is targeted toward achieving the following objectives as set out in the Frequency Spectrum (Fees & Pricing) Regulations of 2004 (Amended 2009).
- Establish a transparent, fair, competitive and non-discriminatory pricing structure that include, but not limited to, auctions, "beauty contest" and other internationally accepted methods of bidding for the acquisition of frequency spectrum;
- Standardise frequency spectrum fees and pricing system in order to promote uniformity, consistency and efficiency in spectrum management in Nigeria in conformity with international standards;
Ensure that the prices reflect the market value and are directly proportional to frequency spectrum size; - Promote efficiency and competition in the usage of frequency spectrum;
Facilitate access to frequency spectrum by simplifying and harmonising the electronic magnetic wave spectrum pricing process; and - To achieve government policy objectives of even development of telecommunications infrastructure across Nigeria and the universal service goals.
Please see below for the pricing formulas for Commercial Frequency Spectrum and Microwave Frequency Spectrum respectively;
Commercial Frequency Spectrum
The price of spectrum (excluding microwave frequencies) is calculated on an annual per state basis using the following formula;
Spectrum Fee = (U) × (B) × (K1) × (K2) per State
Where;
- U = Unit Price: This varies according to Licensing Region/Tier of the State in which the applicant seeks to operate.
Tier State(s) Prize (MHz/Year) Tier 1 Lagos 3,000,000 Tier 2 Delta; Federal Capital Territory, Abuja; Kaduna; Kano; and Rivers. 1,500,000 Tier 3 Abia; Anambra; Edo; Ogun; and Oyo. 1,200,000 Tier 4 Akwa Ibom; Bauchi; Bayelsa; Benue; Borno; Cross River; Enugu; Imo; Kogi; Kwara, Niger; Ondo; Osun; and Plateau. 600,000 Tier 5 Adamawa; Ebonyi; Ekiti; Gombe; Jigawa; Katsina; Kebbi; Nassarawa; Sokoto; Taraba; Yobe; and Zamfara. 300,000
- B = Assigned Bandwidth (Spectrum Size) in MHz
- K1 = Band Factor
- 1.0 for 3.5 GHz Band
- 1.6 for 1.8/1.9 GHz Band
- 1.4 for 800/900 MHz Band
- 1.2 for 2.0 – 2.5 GHz Band
- 0.33 for 10.5 GHz Band
- 0.12 for 26 GHz
- 2.0 for 450 MHz
- 0.5 for 5.0 GHz
- K2 = Tenure Duration Factor
- 0.3 for 3 months
- 1.0 for a 1 year License
- 4.0 for a 5 year License (Standard)
- 7.2 for a 10 year License
- 10.4 for a 15 year License
Duplex/Simplex
For simplex channel, unit price per State will be half of equivalent duplex channel.
Microwave Frequency Spectrum
Microwave frequencies are not priced on State basis. Unit price is uniform throughout the Federation and subject to review, from time to time. The fee for microwave frequencies is calculated using the formula below.
Price per Hop = (U) × (F1) × (F2) × (N) per Annum
Where;
- U = Unit Price: N18,000
- N = Total Number of RF Channels (for N+1 Systems)
- F1 = Band Factor
- 1.2 = 1 — 4 GHz Band
- 1.0 = 6/7/8 GHz Band
- 0.8 = 11/13 GHz Band
- 0.7 = 15 — 18 GHz Band
- 0.5 = 19 — 25 GHz Band
- F2 = Bandwidth Factor
- 1 = 3.5 MHz
- 2 = 7 MHz
- 4 = 14 MHz
- 8 = 28 MHz
- 12 = 40MHz
- 16 = 56 MHz
Renewal Date
All microwave frequencies are subject to renewal by 31st December of every year.