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NCC Engages Stakeholders On Unclaimed Recharges,  Consumer Protection

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The Nigerian Communications Commission (NCC) has convened a  stakeholder engagement forum to address the issue of unclaimed and unutilized subscriber recharges. 

The forum, held on April 8, 2025, brought together key industry players to deliberate on regulatory measures aimed at protecting consumer interests while maintaining industry sustainability.

In his welcome address, the Executive Vice Chairman (EVC) of the NCC, Dr. Aminu Maida, whose speech was delivered by the Executive Commissioner for Stakeholder Management, Rimini Makama, emphasized the importance of addressing the fate of prepaid balances when accounts become inactive. 

He noted that there is need for a regulatory framework that balances safeguarding consumer rights, ensuring effective oversight, and maintaining industry competitiveness.

“The telecommunications industry has long been a pillar of economic growth, financial inclusion, and digital transformation. 

However, as the sector evolves, we must address emerging challenges, especially those that may compromise consumer rights,” Maida stated.

The NCC’s Quality-of-Service Business Rules 2024 stipulate that a prepaid line without a Revenue Generating Event for six months must be deactivated, and if inactivity persists for another six months, the line may be recycled. 

Subscribers have the right to reclaim unused credit within a year, provided they can demonstrate ownership. However, the broader debate remains whether operators should refund unused airtime or if the principle of “use it or lose it” should apply.

“Our goal is to arrive at a framework that protects consumers while ensuring the continued efficiency and competitiveness of the industry,” Maida added.

The Head of Legal & Regulatory Services at the NCC, Mrs. Chizua Whyte, in her opening remarks, provided insights into the Draft Guidance on Unutilized and Unclaimed Subscribers’ Recharges. She stressed that the NCC remains committed to fostering a fair and transparent regulatory environment that benefits all stakeholders.

“The issue of unutilized and unclaimed recharges on churned subscriber lines represents both a consumer protection challenge and a regulatory opportunity,” she said.

The draft guidance aims to establish a structured approach for managing unclaimed airtime credits. Key provisions include: “A 12-month window for subscribers to reclaim unused recharges after their lines have been churned, provided they verify ownership.

“A mandatory audit requirement for operators to document and report all unclaimed and unutilized recharges, ensuring transparency.

“A restriction on monetization, meaning that unclaimed airtime cannot be converted into cash but must be available through service options such as voice or data plans.

“The NCC has set a 90-day compliance deadline for operators, with penalties for non-compliance, including fines and regulatory audits.

The discussions also highlighted the importance of consumer education. Operators will be required to notify subscribers about forfeiture policies and offer service alternatives instead of refunds.

The framework aligns with international best practices in countries like the U.S., EU, and India, where transparency and service alternatives are prioritized over cash refunds. Due to operational barriers such as cross-network service limitations and the legal status of airtime as a consumable service under Central Bank of Nigeria (CBN) regulations, direct refunds remain impractical.

As part of its regulatory mandate under the Nigerian Communications Act 2003, the NCC is working to create policies that promote industry growth while safeguarding consumers. The draft guidance aims to provide: “A clear process for managing consumer recharges.

“Billing transparency and defined consumer benefits.

“A consistent regulatory approach to ensure certainty in the telecom sector.”

The forum reinforced the NCC’s commitment to collaborative regulation and the protection of Nigerian consumers, setting the stage for an industry-wide shift towards fairer management of unclaimed recharges.

With input from stakeholders, the final regulatory framework will be refined to ensure it meets the needs of both consumers and service providers in Nigeria’s evolving telecommunications landscape.

Tags: Dr. Aminu MaidaExecutive Vice Chairman (EVC) of the NCCMrs. Chizua WhyteNigerian Communications Commission (NCC)

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