The Nigerian Communications Commission (NCC) plans to address the growing issue of unclaimed and unutilised subscriber recharges as the telecoms watchdog meets with stakeholders to debate its proposed guidelines.
Dr Aminu Maida, Executive Vice Chairman of NCC, says the Commission is engaging telecoms stakeholders to develop a regulatory framework that ensures “a fair, transparent, and consumer-centric telecommunications landscape,” especially for inactive prepaid mobile lines.
In a policy brief shared at the forum, and made available to Technology Times, the draft regulatory framework is focusing on protecting subscriber rights while preserving industry competitiveness, Dr Maida tells attendees at the forum on Draft Guidance on Unutilized and Unclaimed Subscribers’ Recharges in the Nigerian Communications Sector.
The Nigerian telecoms market accounts for 169,318,076 active phone subscriptions, 141,655,587 internet subscriptions and 98,875,607 broadband subscriptions as of January 2025, according to official data from NCC.
The draft regulation—anchored on the “use it or lose it” principle—is proposing that any prepaid line without a Revenue Generating Event (RGE) for six months be deactivated, and recycled after another six months of continued inactivity. In such cases, telecoms subscribers can reclaim their unused airtime within one year, if they can prove ownership.
NCC’s chief: Should operators be required to refund unused airtime, or should the principle of ‘use it or lose it’ prevail?
The draft regulation—anchored on the “use it or lose it” principle—is proposing that any prepaid line without a Revenue Generating Event (RGE) for six months be deactivated, and recycled after another six months of continued inactivity. In such cases, telecoms subscribers can reclaim their unused airtime within one year, if they can prove ownership.
While delivering Dr Maida’s welcome address at the virtual stakeholders forum held today, Rimini Makama, Executive Commissioner, Stakeholder Management at NCC, says that “striking the right balance between safeguarding consumer rights, ensuring effective regulatory oversight, and maintaining industry sustainability requires a collective effort.”
The EVC spotlights growing concerns over prepaid airtime balances left dormant when subscribers become inactive. “At the heart of our discussions today is the issue of unclaimed recharges,” Dr Maida states, noting that the evolving mobile ecosystem is demanding a balance between consumer protection and operational efficiency.
The regulatory proposal is sparking industry-wide discourse on whether telecoms operators should refund unspent airtime or enforce the forfeiture of such credits after prolonged inactivity.
However, Dr Maida says the broader question persists: “Should operators be required to refund unused airtime, or should the principle of ‘use it or lose it’ prevail?”
Dr Maida notes that this conversation is vital as “the fate of prepaid balances when accounts become inactive” is emerging as a critical consumer protection issue.
Under the Commission’s 2024 Quality-of-Service Business Rules, any prepaid mobile line that remains inactive for six months is facing deactivation, with recycling of the line possible after another six months. Subscribers are retaining the right to reclaim unutilised credit within a 12-month window, provided they are able to prove ownership.
However, Dr Maida says the broader question persists: “Should operators be required to refund unused airtime, or should the principle of ‘use it or lose it’ prevail?”
Mrs Chizua Whyte, Head of Legal & Regulatory Services at NCC, who also addressed stakeholders, explains that the proposed Draft Guidance is “establishing clear, fair, and transparent procedures for managing these funds.”
The Draft Guidance is introducing major compliance measures for operators while outlining safeguards for subscribers.
The proposed framework is establishing a 12-month grace period for consumers to reclaim airtime post-churn, while prohibiting cash refunds. Instead, service options such as voice bundles, data plans, and value-added offerings are being proposed as alternatives.
Operators are also being mandated to conduct full audits of churned numbers and report unutilised balances, ensuring what NCC is calling “transparency and accountability” in the process.
The proposed framework is establishing a 12-month grace period for consumers to reclaim airtime post-churn, while prohibiting cash refunds. Instead, service options such as voice bundles, data plans, and value-added offerings are being proposed as alternatives.
She says the regulation mandates mobile network operators (MNOs) to maintain comprehensive records and submit audits of all churned numbers and their associated unclaimed recharges.
“Operators will be required to provide alternative service options—such as voice, data, and value-added services—rather than cash refunds,” Mrs Whyte says, emphasising that airtime remains a consumable service and not equivalent to cash under Nigerian law.
“The Commission is directing that unclaimed recharges cannot be monetised but must be returned through service benefits to affected users,” Whyte explains, adding that operators are expected to comply within 90 days of issuance.
The Commission’s proposed measures, she adds, also align with global best practices in markets like the U.S., EU, and India, where regulators are prioritising transparency and non-cash remedies over airtime refunds.
She is emphasising the need for robust consumer education, clear billing transparency, and regulatory consistency to ensure the policy’s effectiveness.
NCC is acknowledging that cross-network refund schemes may not be feasible due to operational costs and legal interpretations that classify airtime as a consumable service rather than a cash equivalent.
The Commission is also drawing parallels with international standards in the US, EU, and India, where similar approaches are being adopted—prioritising transparency and customer value over refunds.
The regulatory watchdog is making it clear: non-compliance with the new directive may attract sanctions, including audits and fines. NCC is promising to review operator compliance reports within 10 days of submission.
Key highlights of the Draft Guidance include:
- A 12-month window for subscribers to reclaim their unused airtime post-deactivation.
- Prohibition on monetising unclaimed recharges.
- Mandatory consumer awareness campaigns by operators.
- A 90-day compliance window for all service providers, with the risk of fines or audits for non-compliance.
According to NCC, these proposed rules are designed to deliver regulatory clarity, boost billing transparency, and secure better protections for millions of Nigerian mobile subscribers.
“Together, we can develop guidelines that are fair, practical and serve the collective interests of Nigerian consumers, operators, and our growing digital economy,” Mrs Whyte tells stakeholders.
The NCC says it is reviewing all stakeholder input to refine the draft before full adoption, signalling a new era in consumer protection and regulatory accountability in Nigeria’s mobile industry.
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