New Consumer Protection Rule Aims to Address Telecom Credit Losses
The Nigerian Communications Commission (NCC) is proposing a 12-month window for subscribers to reclaim unused airtime or data from deactivated lines. This new proposal forms part of a broader initiative to revamp telecom industry rules and ensure consumer protection in the handling of unclaimed and unutilised recharges.
The initiative was unveiled at a virtual industry consultative forum hosted by the Commission in Abuja on Tuesday.
Striking a Balance: Consumer Rights vs Industry Operations
Speaking on behalf of the NCC Executive Vice Chairman Aminu Maida, Executive Commissioner for Stakeholder Management Rimini Makama emphasized the importance of collaboration in updating the regulatory framework.
“Striking the right balance between safeguarding consumer rights, ensuring effective regulatory oversight, and maintaining industry sustainability requires a collective effort,” Makama said.
Under the Quality-of-Service Business Rules 2024, any prepaid line that fails to generate revenue for six months must be deactivated. If the line remains inactive for another six months, it becomes eligible for recycling—essentially reassigned to another user.
However, the Commission proposes that affected subscribers should be allowed to reclaim their unused credit within a year, provided they can prove ownership.
“Use It or Lose It”? NCC Seeks a Middle Ground
Maida raised an essential industry question:
“Should operators be required to refund unused airtime, or should the principle of ‘use it or lose it’ prevail?”
He clarified that the NCC’s goal is to develop a fair and enforceable framework that protects consumers while preserving the operational and financial sustainability of service providers.
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Operators to Audit Churned Numbers and Unclaimed Recharges
According to Chizua Whyte, Head of Legal and Regulatory Services at the NCC, the proposed guidance mandates telecom operators to:
- Audit all churned numbers
- Document all unclaimed and unutilised airtime and data
- Submit these records for transparency and accountability
Whyte stressed that unclaimed recharges cannot be monetised, meaning telcos can’t convert them into profit. Instead, these credits must be made available through service options to their rightful owners.
Operators will be given 90 days to comply with the new rule once implemented.
Consumer-Centric Policy with Operational Realism
Whyte reiterated that the policy proposal reflects NCC’s consumer-first commitment, while acknowledging the operational constraints telecom providers face.
“Establishing a 12-month window during which affected subscribers can claim unutilised recharges after their lines have been churned, provided they can verify ownership. This balances consumer rights with operational practicality,” she said.
What’s Next?
The policy is still in the consultation phase, with input expected from stakeholders across the telecom value chain. If adopted, it could reshape how telecom providers handle inactive accounts, potentially restoring millions in lost credit to consumers — especially low-income and rural users who are often most affected by line deactivation policies.
