Telcos to compensate subscribers with airtime over poor service

The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within specific locations in the past few months. Nigerian telecommunications consumers have hailed the directive, calling the best the country’s telecommunications industry regulator has done in recent time. But […]

The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within specific locations in the past few months.

Nigerian telecommunications consumers have hailed the directive, calling the best the country’s telecommunications industry regulator has done in recent time.

But the NCC’s position is that subscribers should not be made to bear the full burden of service disruptions where operators fail to meet prescribed standards of service delivery.

Under this directive, erring operators will compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPIs).

And the Mobile Network Operators (MNOs) shall be required to pay these compensations for instances of poor quality of service recorded within specified time frames, a statement by the commission said.

The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur, the statement signed by NCC’s head of public affairs Nnenna Ukoha said.

Ukoha said the directive is rooted in the Commission’s broader regulatory philosophy that places the consumer at the centre of Nigeria’s telecommunications ecosystem.

Daily Trust reports that telecommunications services today underpin economic activity, social interaction, and access to digital opportunities.

When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system.

While regulatory fines have traditionally served as a deterrent against poor service delivery, observers say the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry.

 

 

 

The Commission said it had designed this measure to complement existing and ongoing efforts to strengthen service quality monitoring and enforce performance standards.

 

 

 

Further to this directive by the Commission to MNOs on compensation to consumers, the Commission has also mandated the Tower Companies who own the critical infrastructure for Quality Service delivery, such as masts, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate.

 

 

 

“The Commission will continue to reinforce the obligation of operators to invest consistently in network resilience, capacity expansion, and infrastructure upgrades to meet the growing demand for telecommunications services. At the same time, it will deploy regulatory tools that promote fairness, transparency, and accountability across the sector, ensuring that every subscriber receives the quality of service they deserve while sustaining a telecommunications industry capable of powering Nigeria’s digital future”, NCC further said.

 

 

 

Meanwhile, the National Association of Telecommunications Consumers of Nigeria (NATCOMS) has hailed the NCC directive calling it the best from it in recent time.

 

 

 

NATCOMS president, chief Deolu Ogunbanjo said consumers had suffered a lot in terms of poor network service in the past few months from all the major operators in the country.

 

 

 

Ogunbanjo said the poor service had resulted in loss of business earnings for many of the subscribers and some had lost other things beyond business earnings.

 

 

 

The NATCOMS president urged the NCC to make the regulatory checks on the operators’ performance in terms of quality service on a weekly basis in order to keep the operators on their toes.

 

 

 

The country’s telecom sector has faced complaints over poor network quality, dropped calls, and slow data speeds in recent months.

 

 

 

As a result of this, the NCC had intensified efforts to strengthen service quality monitoring and enforce performance standards across the telecom sector.

 

 

 

The regulatory agency had introduced new Quality of Service (QoS) Regulations in 2024, which set strict Key Performance Indicators (KPIs) for telecom operators, covering metrics such as call drop rates, call setup success rates, and network congestion.

 

 

 

Under these rules, operators are required to meet defined thresholds, with penalties starting from about N5 million per infraction and additional daily fines for continued breaches, reinforcing compliance across the industry.

 

 

 

As a result of this policy violation, early this year, the commission announced that telecom operators are facing potential penalties of about N12.4 billion following multiple breaches of QoS obligations, in what regulators describe as one of the most aggressive enforcement drives in recent years.

 

 

 

Earlier enforcement actions included fines imposed on operators such as Globacom, Airtel, and IHS Towers, which were issued a combined N45 million fine for specific infractions.