NCC Hosts Stakeholder Engagement Forum On Unclaimed Recharges

Dr. Aminu Maida, Executive Vice Chairman/CEO of Nigerian Communications Commission (NCC), has emphasized the need for a balanced approach to protect consumer rights and industry sustainability.

He made this remark on Tuesday at the Commission held stakeholder engagement forum to discuss the issue of unclaimed recharges in the telecommunications industry.

Dr. Maida while reiterating the NCC’s commitment to fostering a fair, transparent, and consumer-centric telecommunications landscape, noted that the forum aimed to refine policies and ensure regulatory clarity in the industry.

According to him, the telecommunications industry has long been a pillar of economic growth, financial inclusion, and digital transformation. With the widespread reliance on mobile services, prepaid plans have provided millions of Nigerians with flexibility and affordability.

“However, as the sector evolves, and in line with our commitment to ensuring Quality of Experience for telecom consumers, we must address emerging challenges especially those that may compromise consumer rights. One of such is the fate of prepaid balances when accounts become inactive.

“Striking the right balance between safeguarding consumer rights, ensuring effective regulatory oversight, and maintaining industry sustainability requires a collective effort, and this forum presents an opportunity to explore practical solutions on this subject. At the heart of our discussions today is the issue of unclaimed recharges.

“The Quality-of-Service Business Rules 2024 stipulates 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 their unused credit within one year, provided they can demonstrate ownership.

Amongst the Key discussion he raised includes: Unclaimed Recharges: Subscribers can reclaim unused credits within a year, provided they demonstrate ownership.

“Refund or “Use It or Lose It: The debate centers around whether operators should refund unused airtime or apply the “use it or lose it” principle.

Dr. Maida concluded that for Industry sustainability to be achieved, there is urgent need to balance consumer protection with industry efficiency and competitiveness.

In her contribution to the draft guidance on unutilized and unclaimed subscribers’ recharges in the NCC sector, Mrs. Chizua Whyte, Head of Legal & Regulatory Services, emphasized the importance of this issue, affecting millions of Nigerian subscribers and Mobile Network Operators (MNOs) alike.

According to her, the 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.

“The Nigerian Communications Commission, empowered through the Nigerian Communications Act 2003, continues to develop and refine regulatory instruments governing our industry. Today’s session addresses a matter of significant importance that affects millions of Nigerian subscribers and will also impact on the processes of the Mobile Network Operators (MNOs).

“The issue of 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.

“This Draft Guidance 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.

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 Commission has also outlined clear timelines for implementation, with 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.

She reassured that the Commission remains committed to upholding the highest standards of service and ensuring that the industry continues to evolve and thrive, noting that, the Stakeholders’ forum stands as testament to the Commission’s 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” she added.