NCC Orders Telcos to Compensate Subscribers

The Nigerian Communications Commission has directed mobile network operators to compensate subscribers affected by prolonged or repeated poor quality of service under a new framework that takes effect from April 2026.

The commission announced the directive on Tuesday, April 7, 2026, stating that the move is aimed at strengthening accountability in the telecommunications sector and ensuring that operators take responsibility for service failures.

Under the framework, subscribers in impacted local government areas will receive automatic airtime credits for service disruptions affecting voice calls, SMS, and data services. Both individual and corporate users are eligible for the compensation.

“To qualify, a subscriber must have experienced poor network service in an affected local government area and must have made at least one revenue-generating activity, such as a billed call, SMS, or data session, during the period,” the commission stated.

Subscribers will be notified via SMS once the airtime credits are applied, including details of the amount and reason for the compensation. For users with multiple SIM cards, only lines affected and with recorded billed activity in the impacted areas will be credited. Those who switched operators during or after an outage will not be eligible for compensation from their previous network.

The directive comes amid persistent network challenges faced by telecom operators, largely driven by frequent fibre cuts, alongside ongoing investments in infrastructure upgrades and network expansion.

Data from the first quarter of 2026 showed that operators recorded 577 network outages, with 361 linked to fibre cuts. MTN and Backbone Connectivity accounted for about 70 per cent of these incidents.

The commission clarified that subscribers are not required to file complaints to receive compensation. Operators are expected to monitor network performance using Quality of Service benchmarks to identify affected users automatically.

Airtime credits issued under the scheme will have no usage restrictions and can be applied to calls, USSD services, and data subscriptions on the operator’s network.

The NCC emphasised that the framework complements existing consumer protection measures, including the Consumer Code of Practice Regulations 2024 and the Quality of Service Regulations 2024, rather than replacing them.

The compensation mechanism applies only to Nigerian mobile network operators, while internet service providers operate under a separate framework. Foreign SIM cards roaming in Nigeria are not eligible, although subscribers on national roaming may qualify depending on the host network’s evaluation.

Only prolonged or repeated service failures that fall below regulatory thresholds will qualify for compensation. Short-lived outages and those resolved quickly are excluded, while incidents prior to November 2025 are not covered. Exceptional cases such as fibre cuts, vandalism, theft, or natural disasters will be reviewed before compensation is approved.

The commission added that operators may still face regulatory sanctions, including fines, for severe or repeated service failures, noting that compliance will be monitored and may be independently audited.

It explained that compensation amounts will be determined based on the subscriber’s billed usage during the outage period, the operator’s service performance in the affected area, and confirmation of at least one billed activity.

The NCC described the framework as a significant step toward ensuring subscribers receive value for paid services while holding operators accountable for maintaining acceptable service standards nationwide.

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