Yemisi Izuora
The Nigerian Communications Commission (NCC) and stakeholders in the telecommunications sector entered into brainstorming session to draw up a guideline 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.
The stakeholder’s forum on the Draft Guidance on Unutilized and Unclaimed Subscribers’ Recharges in the Nigerian Communications Sector became necessary to address challenges facing consumers and operators as well.
In her opening remarks, the Head Legal and Regulatory Services At the NCC, 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.
Whyte, explained that the Nigerian Communications Commission, empowered through the Nigerian Communications Act 2003, continues to develop and refine regulatory instruments governing our industry.
“Today’s session 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).” she said.
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.
Key provisions of the Draft Guidance include:establishing a 12-month window during which affected subscribers can claim unutilized recharges after their lines have been churned, provided they can verify ownership. This balances consumer rights with operational practicality.
It also requires operators to conduct comprehensive audits of all churned numbers and submit detailed documentation of all unclaimed and unutilized recharges, ensuring transparency and accountability in the process.
Another provision is directing that unclaimed recharges cannot be monetized but must be made available through service options to the affected subscribers, including voice offerings, data plans, and value-added services on the primary network.
The Commission has also outlined clear timelines for implementation, with operators expected to achieve full compliance within ninety days of issuance, alongside comprehensive consumer education and notification requirements. In this digital age, where telecommunications services form the backbone of our economic and social interactions, proper management of consumer credits becomes increasingly critical.
The proposed Guidance aligns with the Commission’s broader commitment to consumer protection while acknowledging the operational realities faced by our licensees.
She said that the Nigerian Communications Commission and stakeholders across the industry have worked diligently to advance our communications ecosystem.
This Draft Guidance represents another step forward in creating an environment of regulatory excellence that protects consumer interests while providing clarity to service providers.
She maintained that their input and comments during this session will be vital in refining this Guidance and the Agency values their expertise, experience, and insights as everyone work to ensure the final framework serves the needs of all stakeholders.
She reassured them that the Commission remains committed to upholding the highest standards of service and ensuring that the industry continues to evolve and thrive, adding that the 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. We look forward to a productive session that will shape the future management of unutilized and unclaimed recharges in our communications sector.” she concluded.
Earlier, the Executive Vice Chairman and Chief Executive Officer of the NCC, Dr. Aminu Maida, expressed appreciation for the presence and participation of all stakeholders and highlighted the relevance of the forum in addressing critical challenges affecting both consumers and operators in the telecoms industry.
Maida emphasised the pivotal role of the telecommunications sector in driving economic growth, financial inclusion, and digital transformation across Nigeria. He stated that as mobile services continue to be a major channel for communication, prepaid plans have remained a preferred option due to their affordability and flexibility. However, he acknowledged that emerging challenges, particularly those concerning consumer rights, must be addressed with urgency.
He noted that a key concern is what happens to prepaid balances when mobile lines become inactive. Under the Quality-of-Service Business Rules 2024, a line without a Revenue Generating Event for six months must be deactivated, and if inactivity continues for another six months, the line may be recycled. Nonetheless, subscribers retain the right to reclaim unused credit within a year, provided they can prove ownership. The Executive Vice Chairman posed a critical question to stakeholders, should telecom operators be mandated to refund unused airtime or should the principle of “use it or lose it” continue to apply?
Maida explained that finding a sustainable solution requires a balanced approach that safeguards consumer rights while ensuring industry efficiency and competitiveness. He reiterated the Commission’s commitment to a transparent, fair, and consumer-focused regulatory environment, stressing that the contributions and insights from the forum would help shape a robust policy framework for the industry.
A synopsis of the consultative forum provided further insights into the core issues. It clarified that unused prepaid credit is typically forfeited after prolonged inactivity under the “use it or lose it” policy, and airtime is considered a non-refundable, consumable service, not equivalent to cash. Operators are, however, mandated to notify consumers about forfeiture policies and offer alternative services in place of refunds, supported by mandatory consumer education campaigns.
Operationally, the forum acknowledged that implementing cross-network service options is impractical due to varying operational costs, administrative complexities, and regulatory limitations, including policies of the Central Bank of Nigeria (CBN). The NCC stated that the Draft Guidance is consistent with international best practices in regions such as the United States, European Union, and India, where transparency and service alternatives are prioritised over cash refunds.
The main objectives of the Draft Guidance were reiterated during the session: to provide a comprehensive process for managing consumer credits via safeguards and service options; to enhance billing transparency and deliver clear consumer benefits; and to offer regulatory certainty through a standardised approach for all operators in the sector.
The forum concluded with strong commitments from the NCC to uphold high standards in service delivery while protecting consumer interests and encouraging industry-wide collaboration. Participants were encouraged to provide their input and feedback to ensure that the final framework reflects a balanced perspective that serves consumers, operators, and Nigeria’s growing digital economy.