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Nigerian Communications Commission (NCC) has introduced a new compensation framework requiring mobile network operators to provide relief to subscribers affected by persistent poor service quality, as part of broader efforts to strengthen accountability in the telecommunications sector.
The directive, which takes effect from April 2026, mandates telecom operators to proactively identify impacted users and issue compensation without the need for formal complaints.
Eligibility Criteria
Under the framework, compensation will be extended to both individual and corporate subscribers located in affected local government areas where service disruptions—covering voice calls, SMS, or data—fall below regulatory standards.
To qualify, subscribers must have experienced service degradation within the impacted area and carried out at least one revenue-generating activity, such as a billed call, SMS, or data session, during the disruption period.
Eligible users will receive automatic airtime credits, with notifications sent via SMS detailing the compensation applied. For customers with multiple SIM cards, only lines directly impacted and actively used during the outage will be credited.
However, subscribers who switch networks during or after a disruption will not be entitled to compensation from their previous service provider.
Scope and Limitations
The NCC clarified that the compensation mechanism applies strictly to prolonged or repeated service failures that breach established Quality of Service thresholds. Temporary or quickly resolved disruptions are excluded, as are outages that occurred before November 2025.
Exceptional incidents—such as fibre cuts, vandalism, theft, or natural disasters—will be assessed on a case-by-case basis before compensation is approved.
Foreign SIM cards roaming in Nigeria are not covered under the framework, although users on national roaming arrangements may qualify depending on the host network’s performance evaluation.
Implementation and Oversight
Operators are required to monitor network performance using established Quality of Service key performance indicators (KPIs) to detect outages and identify affected subscribers. Compensation will be calculated based on factors such as usage levels during the outage and the severity of service degradation in the affected location.
Airtime credits issued under the scheme will be unrestricted, allowing customers to use them for calls, data, and USSD services.
The NCC emphasised that this initiative complements existing consumer protection regulations, including the Consumer Code of Practice and Quality of Service frameworks, rather than replacing them.
In addition to compensating subscribers, telecom operators may still face regulatory penalties for persistent or severe service failures. The Commission also noted that compliance will be closely monitored, with the possibility of independent audits to ensure transparency and adherence.
Industry Context
The directive comes amid rising network disruptions, largely driven by frequent fibre cuts and infrastructure challenges. In the first quarter of 2026 alone, hundreds of outages were recorded across the sector, underscoring the need for stronger service accountability mechanisms.
According to the NCC, the new framework represents a significant step toward ensuring that subscribers receive fair value for paid services while reinforcing service quality standards across Nigeria’s telecom ecosystem.
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