The Nigerian Communications Commission (NCC), at a stakeholder’s forum unveiled frameworks for unclaimed and unutilized airtime with the aim to protect consumers’ right.
The Industry Consultative Forum hosted by the Commission in Abuja recently was a regulatory instrument being developed to address the issue of unutilised and unclaimed recharges (for airtime and data) by telecom consumers.
The event which was hybrid featuring in-person and virtual participation by staff of NCC, telecom companies and other concerned industry stakeholders, according to the organiser, the main objectives of the draft guidance are to provide a process for managing consumer recharges and credits through safeguards and service options; provide billing transparency and clear benefits to consumers and to set out clear and certain approaches that will provide regulatory certainty to the sector.
It was agreed at the forum that General Unused prepaid credit is forfeited after prolonged inactivity (‘use it or lose it”). Airtime is non-refundable and not equivalent to cash.
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Also to safeguard consumers, operators must notify users about forfeiture policies and offer service alternatives (e.g., • data/voice plans) instead of refunds. Likewise mandatory consumer education campaigns and awareness is important.
“Operational barriers cross network service options are impractical due to varying operator costs, administrative complexity, and airtime’s legal status as a consumable service.
On global alignment, it was said that the framework matches with International best practices especially in the U.S., EU. India, etc., prioritizing transparency and service alternatives over cash refunds.
For compliance, communications service providers was said to have 90 days to implement rules; non-compliance risks fines/audits which the commission reviews audits within 10 days.
Speaking at the forum, the Executive Vice Chairman/CEO, Nigerian Communications Commission, Dr. Aminu Maida earlier in his welcome address said the telecommunications industry has long been a pillar of economic growth, financial inclusion, and digital transformation and with the widespread reliance on mobile services, prepaid plans have provided millions of Nigerians with flexibility and affordability.
“However, as the sector evolves, and in line with our commitment to ensuring Quality of Experience for telecom consumers, we must address emerging challenges especially those that may compromise consumer rights. One of such is the fate of prepaid balances when accounts become inactive.
Dr. Maida who was represented at the forum by the Executive Commissioner, Stakeholder Management, Rimini Makama added that striking the right balance between safeguarding consumer rights, ensuring effective regulatory oversight, and maintaining industry sustainability requires a collective effort, and the forum presents an opportunity to explore practical solutions on this subject.
The EVC explained further that the Quality-of-Service Business Rules 2024 stipulates that a prepaid line without a Revenue Generating Event for six months must be deactivated, and if inactivity persists for another six months, the line may be recycled. Subscribers have the right to reclaim their unused credit within one year, provided they can demonstrate ownership.
Stating that the commission remains committed to fostering a fair, transparent, and consumer-centric telecommunications landscape, he said discussions at the forum is critical to refining the commission’s policies and ensuring that the regulatory approach aligns with the dynamic nature of the market. “As we deliberate, I encourage open and constructive engagement, as your insights will be invaluable in shaping a framework that balances the interests of all stakeholders.”
In her remarks, Head Legal & Regulatory Services of the Nigerian Communications Commission, Mrs. Chizua Whyte said the forum represents a crucial step in fulfilling the Commission’s mandate to create and develop regulatory instruments that foster a vibrant communications market and regulatory environment benefiting all stakeholders.
She said the Nigerian Communications Commission, empowered through the Nigerian Communications Act 2003, continues to develop and refine regulatory instruments governing the industry.
“Today’s session therefore addresses a matter of significant importance that affects millions of Nigerian subscribers and will also impact on the processes of the Mobile Network Operators (MNOs).
“The issue of unutilized and unclaimed recharges on churned subscriber lines represents both a consumer protection challenge and a regulatory opportunity. When subscribers are disconnected after extended periods of inactivity as defined by our Quality of Service Regulations, many leave behind unused credits.
“This Draft Guidance seeks to establish clear, fair, and transparent procedures for managing these funds, ensuring that subscribers maintain rightful access to their purchased credits while providing operators with regulatory clarity,” she explained.
She continued: “This Draft Guidance represents another step forward in creating an environment of regulatory excellence that protects consumer interests while providing clarity to service providers.
“We wish to reassure you that the Commission remains committed to upholding the highest standards of service and ensuring that the industry continues to evolve and thrive. This Stakeholders’ forum stands as testament to our commitment to transparent and collaborative regulation.
“Together, we can develop guidelines that are fair, practical and serve the collective interests of Nigerian consumers, operators, and our growing digital economy.”
BV.
