Mobile phone dealers and other mobile device traders under the Association of Mobile Phones and Allied Products Traders of Nigeria have rejected the proposed registration fees for newly imported devices under the Nigerian Communications Commission’s Device Management System.
The traders, however, said they were not opposed to the DMS itself, describing the system as a useful mechanism for creating a register of mobile devices connected to Nigerian telecommunications networks.
In a statement issued on Thursday in Abuja, President of the association, Musa Mamza, said the major concern was the proposed financial obligation attached to the registration of newly imported devices, warning that the cost would eventually be borne by consumers.
According to him, original equipment manufacturers, distributors and dealers are unlikely to absorb the additional cost and would therefore factor it into the prices of mobile phones and other devices.
“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 urged the NCC to reconsider the payment component of the policy and intensify consultations with stakeholders before enforcing the proposed charges.
“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.
Mamza also raised concerns over what he described as inadequate sensitisation of traders ahead of the implementation of the DMS, saying many operators in the mobile phone market had yet to receive sufficient information or training on the system.
He called on the NCC to embark on a nationwide awareness campaign and provide practical training for dealers to enable them to understand the registration requirements and procedures.
The association further argued that the initial timeframe for implementation was inadequate, given the size and spread of Nigeria’s mobile device market.
Mamza said thousands of traders, distributors and retailers operating across the country would require adequate time to understand the new requirements before the policy could be effectively implemented.
He consequently called for a three-to-six-month sensitisation period before enforcement of the contentious aspects of the policy.
“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,” he said.
The association said it had communicated its concerns to relevant authorities and was seeking further engagement with the commission before the payment component of the DMS is enforced.
Mamza also appealed to the Minister of Communications, Innovation and Digital Economy, Bosun Tijani to intervene in the matter and ensure that the concerns of mobile phone traders were addressed.
“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 stated.
He warned that an improperly coordinated implementation could have wider consequences for businesses and employment across the mobile device distribution chain, particularly if additional costs were transferred to consumers and weakened demand.
The DMS is intended to provide the telecommunications regulator with a centralised mechanism for identifying and managing mobile devices operating on Nigerian networks. Such systems are generally used to improve device identification, combat the use of cloned or counterfeit devices and support efforts to address mobile-device-related fraud and network security concerns.
For the traders, however, the effectiveness of the initiative should not come at the expense of businesses and consumers, particularly where the financial implications of compliance have not been sufficiently addressed.
