Stakeholders Push for Extension of DMS Implementation Timeline, Seek Clarification on Grey Areas

Industry stakeholders in the telecommunications de-vices manufacturing sector have called on the Nigerian Communications Commission (NCC) to consider ex-tending the implementation timeline for the deploy-ment of Device Management System (DMS) in Nigeria. The stakeholders, Original Equipment Manufacturers (OEMs) of telecoms devices, also sought further clarifi-cations on grey areas in the DMS implementation pro-cess. The DMS functions as a central equipment register, checking the IMEI of every SIM-enabled device against records of stolen, cloned, counterfeit, or non-type-approved devices before allowing network activation. Once the DMS goes fully live, an importer must upload IMEI and invoice data, pay a per-device fee, and obtain a DMS certificate before customs could clear a shipment. This step sits alongside the existing Form M, SONCAP, NRS VAT, and NCS customs steps. NCC had engaged with critical stakeholders, including OEMs, importers, dealers, and vendors to sensitise them on its intention to implement DMS in Nigeria as well as the onboarding of International Mobile Equipment Identity (IMEI) numbers of devices current-ly held in stock in the DMS system. NCC had also informed stakeholders of the plan to charge approximately N670 per IMEI for future phones and over N3,700 for high-end devices, but it said exist-ing stock already in Nigerian warehouses would be eligible for free on-boarding to the DMS, with the upload window for importers closing on September 7. The stakeholders were, however, worried that the duration of the grace period given for free onboarding of device IMEI to the DMS was too short, saying that they will need more time to complete the necessary registration on the portal and upload the IMEIs as requested. They also complained about the ambiguity in the implementation processes, and sought further clarifications on grey areas. According to them, there is no stated procedure in appealing in situations where a device is flagged due to a damaged IMEI that was damaged legally, especial-ly in a situation where a software or repair glitch caused the damage. They said the economic implication for importers, reporters, and possibly consumers, had not been addressed. The stakeholders, in a statement, said with the timeframe given, shipments that had been dis-patched would have to be subjected to the DMS, thereby creating unplanned financial burdens, when viewed from the procurement chain and from the importer to consumer. According to the statement, while NCC has stated that it would train some technicians in line with the policy, details as to what this would entail, particularly the financial implications, have not been disclosed The statement said, “The initiative is commendable. However, the commission needs to ensure it is phased, timed and executed efficiently. “Right now, there are too many grey areas and a timeline that is impractical, and those are challenges that should be addressed.” During NCC’s engagement with stakeholders, the commission tried to provide answers to some ques-tions raised, but the stakeholders were yet to be con-vinced with some of the clarifications given by NCC during the engagement. For instance, the issue of what the DMS will mean for small and micro-importers who brought in only a few devices at a time, and whether the new require-ments could push some of them out of the formal market, was raised. In its response, NCC stated that micro-importers must meet the same licensing requirements regardless of import volume, but did not address whether this could push them out of the formal market. Another issue on how the DMS will affect the second-hand and refurbished device market, particularly for importers and dealers who relied on used phones as a significant part of their business, was also raised. In its response, NCC stated that legitimate ownership transfers could be accommodated, but repairs or board changes affecting the IMEI might create authentication problems. The issue of how the DMS will affect dealers who currently operated through informal or grey-market supply channels was also raised during the engage-ment, and NCC said the DMS was designed to address grey-market operators, but did not provide further details on its specific impact on them. The stakeholders called for further clarifications before the full implementation of the DMS.