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NCC orders telcos to compensate subscribers

The Editor by The Editor
April 8 2026
in Business
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NCC orders telcos to compensate subscribers

The Nigerian Communications Commission (NCC) 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 said the move was aimed at ensuring accountability in the telecommunications sector. Telcos are now required to identify affected subscribers and provide compensation directly, the telecom regulator said on its website on Tuesday.

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

“To be eligible, you must have experienced poor network service in an affected local government area, and you made at least one outgoing revenue-generating event (billed call, SMS, or data session) during the relevant period,” the regulator stated in a post on its website on Tuesday.

Subscribers will be notified via SMS once airtime credits are applied, with details of the amount and purpose of the compensation. For subscribers with multiple SIMs, only affected lines with billed activity in the impacted LGAs will be credited. Those who switch operators during or after an outage will not be eligible for compensation from the previous operator.

Telcos have been dealing with frequent network failures driven largely by massive fibre-cut incidents, while at the same time pushing major investments into upgrading core infrastructure and expanding coverage.

In the first quarter of 2026, telcos recorded 577 network outages, with 361 of them directly caused by fibre cuts; MTN and Backbone Connectivity together accounted for about 70 per cent of these incidents.

Subscribers do not need to submit claims. Operators are required to monitor their network performance across locations and service disruptions against Quality of Service KPIs. This enables them to identify affected subscribers without the need for individual complaints, the commission stated.

Airtime credits issued will have no restrictions and can be used for calls, USSD, and data subscriptions on the operator’s network. The NCC emphasised that this framework does not replace existing consumer protection mechanisms.

“The directive adds a direct compensation mechanism for affected subscribers. It aligns with measures set in existing legislation such as the Consumer Code of Practice Regulations 2024 and the Quality of Service Regulations 2024,” it said.

The compensation mechanism applies only to Nigerian MNOs. Internet service providers already have a separate framework in place. Foreign SIMs roaming in Nigeria are not eligible, though subscribers on national roaming may qualify, depending on the host network evaluation.

Only prolonged or repeated service failures falling below regulatory thresholds will qualify. Short or quickly remedied outages are excluded. Past outages before November 2025 are also excluded. Exceptional circumstances such as fibre cuts, vandalism, theft, or natural disasters will be reviewed before compensation is granted.

The NCC said operators may still face regulatory fines in addition to compensation for severe or repeated service failures. “Compliance will be monitored, and the commission may conduct independent audits through reputable audit firms,” the NCC noted.

The NCC explained that the compensation amount will be based on billed usage during the outage period, the operator’s Quality of Service performance in the affected area, and confirmation that the subscriber made at least one billed outgoing activity.

“This framework is a significant step in ensuring that subscribers receive value for services paid for and that operators are held accountable for maintaining acceptable quality of service across the country,” the NCC added.

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