Nigerian Regulator Unleashes Strict Airtime Compensation Rules for Telcos

The Nigerian telecommunications sector is set for a major shift as the Nigerian Communications Commission (NCC) mandates mobile network operators, including MTN, Airtel, Globacom, and T2mobile, to compensate subscribers for poor network quality.
The directive targets long-standing issues such as dropped calls, bounced SMS, and unreliable internet services, with compensation in the form of unrestricted airtime credits.
These credits will be automatically applied to affected subscribers who meet defined technical criteria, including experiencing poor service in a relevant Local Government Area and conducting at least one outgoing revenue-generating activity during the outage period.
The NCC has outlined clear thresholds for what constitutes a “major outage” or service degradation, focusing on disruptions affecting at least 5% of an operator’s subscriber base, multiple sites, or high-traffic states.
Between December 2025 and March 2026, 577 major outages were reported across 11 operators, highlighting persistent network unreliability.
While some service disruptions result from factors beyond operators’ control, such as fibre cuts, power outages, and vandalism, the compensation scheme specifically addresses issues stemming from operators’ negligence or failure to meet quality standards.
The airtime compensation mechanism complements existing consumer protection frameworks and will take effect from November 2025, with payouts commencing in April 2026.
Operators are required to monitor network performance against Quality of Service KPIs and notify subscribers once credits are applied.
The NCC emphasizes that sustained improvements in service quality will depend on collaborative efforts between regulators and telcos to address recurring challenges while ensuring compliance with regulatory standards.
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