By Taibat Ummi Yakubu

A new regulatory system being introduced by the Nigerian Communications Commission (NCC) to tighten control over mobile devices entering and circulating in Nigeria is already generating concerns among industry players, with telecoms device manufacturers and importers asking the commission to extend the implementation deadline.

The stakeholders, mainly Original Equipment Manufacturers (OEMs), say they support the Device Management System (DMS) in principle but are worried that the short timeline, unresolved technical questions and potential financial consequences could create fresh difficulties for businesses and consumers.

At the heart of the controversy is the DMS, a central device registration system designed to track the International Mobile Equipment Identity (IMEI) numbers of SIM-enabled devices in Nigeria. The system is expected to identify stolen, cloned, counterfeit or non-type-approved devices and prevent them from gaining access to mobile networks.

Under the proposed arrangement, importers bringing devices into the country would be required to upload IMEI and invoice information, pay a fee for each device and obtain a DMS certificate before their shipments can be cleared by customs.

The new requirement would operate alongside existing import and regulatory procedures, including Form M, SONCAP, NRS VAT and Nigeria Customs Service processes, effectively adding another layer to the chain through which mobile phones and other connected devices enter the Nigerian market.

The NCC has been engaging OEMs, importers, dealers and technology vendors as it prepares for full implementation. During those engagements, the commission also outlined plans for onboarding devices already in the country, particularly phones and other equipment currently held in warehouses.

But it is the deadline that appears to have triggered the latest concern.

The commission had announced that existing stock would be eligible for free onboarding into the DMS, with importers expected to upload the relevant IMEI numbers before the September 7 deadline. Stakeholders, however, argue that the grace period is simply too short to complete the process, particularly for businesses holding large inventories or dealing with multiple shipments.

They are asking the NCC to extend the window and provide clearer guidelines before the system becomes fully operational.

The industry players also questioned the proposed charges for future device registrations, which the NCC said would be about N670 per IMEI for standard devices and more than N3,700 for high-end devices.

For businesses operating on tight margins, stakeholders fear that the additional regulatory cost could eventually travel down the supply chain and be reflected in the prices paid by consumers.

Their concerns go beyond the cost of registration.

One of the major unresolved issues is what happens when a legitimate device is flagged because its IMEI has been damaged or altered through a genuine repair, software malfunction or technical fault.

Stakeholders say the system needs a clearly defined appeal mechanism for such cases, arguing that legitimate owners and businesses should not be punished simply because a device develops an authentication problem.

They are also seeking clarification on the wider economic consequences of the policy for importers, dealers, repairers and consumers.

According to the stakeholders, devices that have already been shipped could arrive during the transition period and become subject to the new requirements, potentially creating unexpected costs that had not been factored into the original procurement and distribution process.

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They also questioned the proposed training of technicians under the new regime, saying the NCC had indicated that technicians would receive training but had yet to provide sufficient details about the programme, including who would bear the associated costs.

“The initiative is commendable. However, the commission needs to ensure it is phased, timed and executed efficiently,” the stakeholders said.

They argued that the current framework contains too many unresolved issues and that the implementation timeline does not adequately reflect the realities of the industry.

The concerns are particularly significant for small and micro-importers, whose businesses depend on bringing relatively small quantities of phones and other devices into the country.

During its engagement with stakeholders, the NCC maintained that micro-importers would still be required to meet the applicable licensing requirements irrespective of the volume of devices they import.

However, stakeholders said this did not fully answer the larger question of whether the new requirements could make it difficult for smaller operators to remain in the formal market.

The second-hand and refurbished phone market has also emerged as another area of uncertainty.

Dealers who depend heavily on used devices want to know how the DMS will distinguish legitimate ownership transfers from suspicious devices and how repaired phones will be treated where repairs involve components connected to the device's IMEI.

The NCC indicated that legitimate ownership transfers could be accommodated, but acknowledged that repairs or replacement of boards that affect an IMEI could create authentication challenges.

Another unresolved issue concerns businesses currently operating through informal or grey-market supply channels.

The NCC has made clear that the DMS is partly intended to tackle grey-market operations, but stakeholders say they need greater clarity on how the policy will affect dealers already operating within that space and whether the new requirements could force some businesses out of the formal economy.

The controversy does not necessarily mean that the industry is opposed to the DMS.

Rather, stakeholders say the objective of creating a cleaner and more accountable device market is welcome, but insist that the system must be introduced in a way that does not unintentionally punish legitimate businesses or increase costs for consumers.

For the NCC, the challenge now is to convince an industry already dealing with multiple regulatory and import requirements that the DMS will improve the market without creating another layer of bureaucracy.

For importers and dealers, however, the clock is already ticking.

With the free onboarding deadline of September 7 approaching, they want the commission to slow down, clarify the rules and give businesses enough time to prepare before the new system begins determining which devices can enter and operate in Nigeria's telecommunications market.