Dealers React as NCC Announces Registration Fees For Mobile Devices

Dealers React as NCC Announces Registration Fees For Mobile Devices

  • Nigerian phone dealers warn proposed DMS registration fees could raise device prices for consumers
  • Traders support device registration but demand three to six months for sensitisation before enforcement
  • Association seeks Minister Bosun Tijani’s intervention over costs, implementation and potential effects on jobs

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Mobile phone dealers in Nigeria have raised concerns over proposed registration fees for newly imported devices under the Nigerian Communications Commission’s Device Management System (DMS), warning that the additional cost could eventually push up prices for consumers.

The Association of Mobile Phones and Allied Products Traders of Nigeria said it supports the broader objective of the DMS but opposes the financial burden attached to registering newly imported mobile phones and other devices.

NCC mandates device dealers and sellers to pay registration fees
Dealers react as NCC imposes registration fees on devices across Nigeria. Credit: Novatis.
Source: Getty Images

In a statement issued in Abuja, the association’s president, Musa Mamza, said manufacturers, distributors and dealers were unlikely to absorb the additional charges themselves.

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Dealers fear costs will reach consumers

According to Mamza, any registration fee imposed along the supply chain could ultimately be added to the retail prices paid by Nigerians.

“The companies that produce the devices refuse to say they will bear the cost, and so, the OEMs, dealers or distributors will be at the cost of paying that fee. Then they will transfer it to the end user,” Mamza said.

He stressed that traders were not rejecting the DMS itself, but wanted the NCC to reconsider aspects they believe could negatively affect businesses and consumers.

“We are not against the policy. We are against some of the aspects which are detrimental to the industry. This is our concern,” he added.

Traders demand more time

According to Punch, beyond the proposed fees, the association expressed concern about what it described as inadequate sensitisation ahead of implementation.

Mamza said thousands of phone dealers, distributors and retailers across Nigeria would need clear information and practical training to understand how the registration process would work.

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The association consequently called for a three-to-six-month sensitisation period before enforcement of the disputed provisions.

“This will give the NCC and other stakeholders enough time to educate the traders, explain the processes and address the concerns that have been raised,” Mamza said.

The group said it had communicated its concerns to relevant authorities and was seeking further engagement with the NCC before the payment component takes effect.

Traders seek minister’s intervention

Mamza also appealed to the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, to intervene and ensure traders’ concerns are considered.

“If the Minister of Communication is not aware, let him be aware and let him call the NCC to order. Let him do the right thing,” he said.

He warned that poorly coordinated implementation could affect businesses and jobs across Nigeria’s mobile-device distribution chain, especially if higher costs weaken consumer demand.

Why NCC wants device registration

The DMS is designed to give the telecommunications regulator a centralised system for identifying and managing mobile devices operating on Nigerian networks, Vanguard reported.

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NCC mandates device dealers and sellers to pay registration fees
Device dealers to pay registration fees; Nigerians react. Credit: NurPhoto/Contributor
Source: Getty Images

Such systems can help identify devices, tackle cloned or counterfeit phones and strengthen efforts against device-related fraud and security threats.

Mobile phone traders maintain that they support those objectives but want implementation structured in a way that does not impose additional financial pressure on businesses or consumers.

NCC announces date to activate anti-scam platform

Legit.ng earlier reported that the Nigerian Communications Commission has announced that its Telecommunications Identity Risk Management System will become operational in October, strengthening efforts to combat financial fraud and identity theft involving mobile phone numbers.

Known as TIRMS, the digital platform is designed to help banks, telecommunications companies and other service providers identify suspicious mobile numbers before fraudulent transactions are completed.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng