By correspondent.
The Executive Vice Chairman, Nigerian Communications Commission, NCC,Dr.Aminu Maida,has expressed the commitment of the commission in addressing emerging challenges, especially those that may compromise consumers’rights.
He stated this in his address in Abuja on Tuesday at the stakeholder engagement forum bordering on unclaimed recharges. The engagement was done on virtual platform.
Represented by the Executive Commissioner, Stakeholder Management, Rimini Makama, Maida said that as the sector evolves, and in line with the common’s commitment to ensuring Quality of Experience for telecommunications consumers, such challenges must be attended to, citing the fate of prepaid balances when accounts become inactive.
The EVC noted that the telecommunications industry has long been a pillar of economic growth, financial inclusion, and digital transformation, adding that with the widespread reliance on mobile services, prepaid plans have provided millions of Nigerians with flexibility and affordability.
He said:”Striking the right balance between safeguarding consumer rights, ensuring effective regulatory oversight, and maintaining industry sustainability requires a collective effort, this forum presents an opportunity to explore practical solutions on this subject.
Maida,who noted that the heart of the discussions centered on the issue of unclaimed recharges,reminded the forum of the Quality-of-Service Business Rules of 2024 which stipulates that a prepaid line without a Revenue Generating Event for six months must be deactivated.
According to the Rules, if inactivity persists for another six months, the line may be recycled while subscribers have the right to reclaim their unused credit within one year, provided they can demonstrate ownership.
“However, the broader debate remains—should operators be required to refund unused airtime, or should the principle of “use it or lose it” prevail? Our goal is to arrive at a framework that protects consumers while ensuring the continued efficiency and competitiveness of the industry.
“The Commission remains committed to fostering a fair, transparent, and consumer-centric telecommunications landscape,”he added.
He described the discussion as critical to refining NCC ‘s policies and ensuring that its regulatory approach aligns with the dynamic nature of the market.
He expressed optimism that with open and constructive engagement insights from the Forum would be invaluable in shaping a framework that balances the interests of all stakeholders and strengthen consumer trust and regulatory clarity.
In her opening remarks, the Headline, Legal& Regulatory Services,NCC, Mrs.Chixus Whyte, said that the forum bordering on the Draft Guidance on Unutilized and Unclaimed Subscribers’ Recharges in the Nigerian Communications Sector, remains crucial in fulfilling the commission’s aims and objectives.
“This 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.
Mrs.Whyte explained that NCC, empowered through the Nigerian Communications Act 2003, has continued to develop and refine regulatory instruments governing the communications industry in the country.
According to her, 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,” she said.
The head of legal and regulatory services described addresses at the session as a matter of significant importance that affects millions of Nigerian subscribers, adding that it will also impact on the processes of the Mobile Network Operators (MNOs).
Giving insights into the Draft Guidance,Mrs.Whyte disclosed that it “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 added that the Key provisions of this Draft Guidance include:”Firstly, 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.
“Secondly, requiring 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.
“Thirdly, 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 head of the legal and regulatory services assured that the commission has also outlined clear timelines for implementation.
She stressed that 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 our broader commitment to consumer protection while acknowledging the operational realities faced by our licensees.
” 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.
“Your input and comments during this session will be vital in refining this Guidance. We value your expertise, experience, and insights as we work to ensure the final framework serves the needs of all stakeholders.
“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. Thank you for your time, your commitment, and your contributions to this process.
We look forward to a productive session that will shape the future management of unutilized and unclaimed recharges in our communications sector,” she said.
The SYNOPSIS OF THE CONSULTATIVE FORUM ON UNCLAIMED AND UNUTILISED SUBSCRIBER FUND are:
1.General Unused prepaid credit is forfeited after prolonged inactivity (‘use it or lose it”). Airtime is non-refundable and not equivalent to cash.
2.Consumer Safeguards: Operators must notify users about forfeiture policies and offer service alternatives (e.g., • data/voice plans) instead of refunds. • Mandatory consumer education campaigns and awareness.
3.Operational Barriers Cross Network service options are impractical due to varying operator costs, administrative complexity, and airtime’s legal status as a consumable service (see also CBN regulations)
4.Global Alignment: The framework matches with International best practices especially in the U.S., EU. India, etc., prioritizing transparency and service alternatives over cash refunds,
5. Compliance: Communications Service providers have 90 days to implement rules; non-compliance risks fines/audits. ‘The Commission reviews audits within 10 days
7.Main Objectives of the Draft Guidance. The main objectives of the Draft Guidance are to:
a,Provide a process for managing consumer recharges and credits through safeguards and service options.
b. Provide billing transparency and clear benefits to consumers
c. Set out clear and certain approaches that will provide regulatory certainty to the sector.
