NCC Directs Telcos to Pay Users for Service Failures

NCC Directs Telcos to Pay Users for Service Failures NCC Directs Telcos to Pay Users for Service Failures
NCC Directs Telcos to Pay Users for Service Failures. Credit: PWC

The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to compensate subscribers who experience poor network service in areas where operators fail to meet approved quality standards.

NCC’s Head of Public Affairs at the commission, Nnenna Ukoha, in a statement on Sunday, said subscribers should not bear the burden of service disruptions caused by operators’ failure to meet required service levels.

The regulator said the directive requires telecom operators to compensate users directly whenever there are breaches in Quality of Service (QoS) Key Performance Indicators (KPIs).

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According to the commission, the compensation will be issued as airtime credits, calculated based on subscribers’ average spending patterns and their presence in Local Government Areas where network failures occur.

“Under this directive, erring operators will compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPls). Mobile Network Operators (MNOs) shall be required to pay these compensations for instances of poor quality of service recorded within specified time frames,” the statement said.

“The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur.”

The commission noted that the measure aligns with its regulatory approach that places consumers at the centre of Nigeria’s telecommunications ecosystem.

It emphasised that telecommunications services play a critical role in economic activities, social interaction, and access to digital opportunities.

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NCC Directs Telcos to Pay Users for Service Failures. Credit: Guardian Nigeria

According to the NCC, poor service delivery not only disrupts communication but also affects productivity, business operations, and public confidence in the sector.

The regulator explained that while fines have traditionally been used to deter poor service delivery, the new directive introduces a consumer-focused accountability framework within the industry.

The NCC added that the policy will complement existing efforts aimed at strengthening service quality monitoring and enforcing industry performance standards.

“When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system,” it added.

“While regulatory fines have traditionally served as a deterrent against poor service delivery, the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry.”

The directive will also affect Tower Companies, which provide key infrastructure such as telecom masts used by operators to deliver network services.

The commission said tower companies would be required to reinvest funds generated from regulatory fines into infrastructure improvements with measurable outcomes, in addition to any further penalties imposed by the regulator.

“The commission is also mandating Tower Companies, which own the critical infrastructure for Quality of Service delivery, such as masts, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate.”

The NCC stated that operators must continue to invest in network resilience, capacity expansion, and infrastructure upgrades to meet Nigeria’s growing demand for telecommunications services.

According to the commission, it will continue deploying regulatory tools that promote fairness, transparency, and accountability in the telecom sector while ensuring subscribers receive the quality of service they deserve.

Author

  • Jimisayo Opanuga

    Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.

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