Introduction
The Nigerian telecommunication sector has continued to experience exponential growth by attracting interests from local and international investors. With a teeming youth population, increase in remote work, online streaming, Nigeria presents immense opportunity for investments in the telecommunication sector especially the provision of internet services.
An Internet Service Provider (ISP) is a company that provides access to the internet through various technologies including fibre-optics, satellite and cable, to individuals and organisations and may also provide other related services such as web hosting, etc.
The Nigerian Communications Commission (NCC) is the regulatory authority with the responsibility of licensing Internet Service Providers in Nigeria. NCC has over the years, issued ISP licenses to some notable internet service providers in Nigeria while ensuring that the Nigerian telecommunication market remains competitive through strict regulations and supervisory oversight of licensed entities. Any entity desirous of providing internet services as an ISP in Nigeria must comply with all the licensing and technical requirements and be issued a license by NCC before it can legally operate in Nigeria.
This article discusses the regulatory requirements and processes for obtaining an Internet Service Provider’s license from the NCC in Nigeria.
Requirements for Obtaining Internet Service Provider’s License
An Internet service provider’s license is an individual license which means that the licensing terms, scope of operation and limitation, obligations, etc. are specific to the service being provided. This is distinct from a class license which has its terms and conditions and the obligations of the licensees common to all the holders. Therefore, to apply for an internet service provider’s license in Nigeria, the applicant must satisfy the conditions for obtaining individual license. These requirements include the following:
1. Company incorporation: The company laws in Nigeria, require that a local company must first be incorporated with the Corporate Affairs Commission (CAC) in Nigeria. There is no minimum share capital requirement for an Internet Service provider’s license, however, where the company has foreign participation, the minimum share capital requirement is N100,000,000 (One Hundred Million Naira) as required by the Federal Ministry of Interior. The corporate documents of the company including the certificate of incorporation, certified true copy of the memorandum and articles of association and status report are required to be submitted to NCC.
2. Tax Registration: Upon incorporation with CAC, the company must be registered with the Federal Inland Revenue Service (FIRS) and obtain its Tax Identification Number (TIN), Tax Clearance Certificate (TCC), etc. which are required to be submitted to NCC for obtaining an ISP license.
3. Security Clearance: An applicant for an ISP license may be required to obtain security clearance from the State Security Service (SSS) for the proposed service and provide NCC with the report on the company and its directors to NCC.
4. The applicant must meet the technical requirements including type approval of telecommunication equipment for operating ISP license as stipulated by NCC.
5. Evidence of sufficient financial resources to provide long-term services to the satisfaction of NCC.
6. Feasibility report of proposed services.
7. Any other document or information that NCC may require from the applicant.
Internet Service Provider’s Licensing Process
Upon satisfying the requirements for obtaining an ISP license, the applicant is required to submit an application to NCC for ISP license, supported by the required documents. The applicant must pay a non-refundable application fee which is 5% of the applicable ISP license fee. Upon the satisfactory review and approval of the application, NCC shall require the payment of the license fee within 30 days. Upon the payment of the license fee, the applicant would therefore be issued with an ISP license authorizing it to provide internet services in Nigeria subject to the terms and conditions stated in the license and compliance with all applicable laws and regulations.
License Validity and Renewal
The internet service providers license is usually valid for 5 years and subject to renewal before the expiration of the license. The application for the renewal of an ISP license must be submitted to NCC at least six months before the expiration of the license. The licensee must also have complied with the terms and conditions of the license including the payment of the annual operating levy to be eligible for the renewal of the license.
Conclusion
Nigerian teeming youth population, growing internet penetration, coupled with increase in remote work and online streaming, presents immense opportunity for investments in its telecommunication sector especially the provision of internet services. ISP license is issued by NCC which is the regulatory authority that regulates the Nigerian telecommunication sector. ISP license allows the provision of internet services through either fibre-optic, satellite or cable to individuals and organisations. Only companies incorporated in Nigeria can apply for ISP license after satisfying other licensing and technical requirements stipulated by NCC. If NCC is satisfied with the application for ISP license, it issues approval to the applicant and requires the payment of the full license fee to be paid within 30 days. Once the applicant pays the license fee, NCC issues the applicant with the license authorising it to provide internet services in Nigeria subject to the terms and conditions of the license and compliance with applicable laws and regulations.
Please note that the contents of this article are for general guidance on the Subject Matter. It is NOT legal advice.
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