NCC Cracks Down on Poor Network Service, Mandates Compensation for Customers

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Nigeria’s telecom regulator has ordered mobile network operators to compensate customers for persistent service disruptions, introducing a new policy that takes effect in April 2026. The Nigerian Communications Commission said the directive is designed to strengthen accountability across the telecommunications sector, requiring operators to identify affected users and issue compensation directly.

Under the new framework, subscribers in impacted local government areas will automatically receive airtime credits for service failures affecting voice calls, text messages, and data services. The policy applies to both individual and corporate customers. Subscribers will be alerted via SMS once airtime credits are issued, with clear information on the value and reason for the compensation. For customers using multiple SIM cards, only those lines affected within the specified local government areas—and showing billed usage—will be eligible. Users who migrate to another network during or after a disruption will forfeit any compensation from their previous operator.

The policy comes against a backdrop of recurring service outages in the telecom sector, largely attributed to extensive fibre cuts, even as operators continue to invest heavily in strengthening infrastructure and widening network coverage. In the first quarter of 2026 alone, telecom operators recorded 577 outages, 361 of which were directly tied to fibre damage. MTN and Backbone Connectivity together accounted for about 70 percent of the total incidents, underscoring the scale of the problem.

Subscribers will not be required to submit claims to access compensation. Instead, telecom operators must actively monitor network performance and evaluate service disruptions against Quality of Service standards, enabling them to identify impacted users automatically without relying on individual complaints, the commission said.

Airtime credits provided under the scheme will be unrestricted, allowing subscribers to use them for calls, USSD services, and data purchases on the operator’s network. The NCC noted that the new framework is intended to complement—not replace—existing consumer protection measures.

The compensation framework is designed to directly support subscribers of Nigerian mobile network operators, while internet service providers continue to operate under a separate framework. Foreign SIM cards roaming in Nigeria are not eligible, though those on national roaming arrangements may still qualify, depending on the host network’s assessment. It focuses on prolonged or repeated service disruptions that fall below regulatory standards, recognizing the frustration these outages cause. Brief or quickly resolved interruptions are not included, and incidents before November 2025 are excluded. Exceptional circumstances such as fibre cuts, vandalism, theft, or natural disasters will be carefully reviewed to ensure fair treatment for affected subscribers.

The NCC emphasized that operators may still face regulatory fines alongside compensation for serious or repeated service failures, highlighting the importance of accountability. Compliance will be monitored closely, with the commission retaining the right to conduct independent audits through trusted audit firms.

Compensation amounts will be calculated with the subscriber in mind, based on billed usage during the outage, the operator’s Quality of Service performance in the affected area, and confirmation that the subscriber carried out at least one billed outgoing activity. The framework is intended to provide tangible relief to users who experience service disruptions, reinforcing the NCC’s commitment to protecting consumer rights.

 

 


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