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The Nigerian Communications Commission (NCC) recently held an Industry Consultative Forum in Abuja on a regulatory instrument being developed to address the issue of unutilised and unclaimed recharges (for airtime and data) by telecom consumers.
The virtual session was attended by industry stakeholders to engage them on the aforementioned matter owing to its importance to both consumers and operators.
Speaking at the session, Dr. Aminu Maida, the EVC/CEO, NCC, ably represented by the Executive Commissioner, Stakeholder Management, Rimini Makama, emphasized that 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 stipulate 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.
However, the broader debate remains—should operators be required to refund unused airtime, or should the principle of “use it or lose it” prevail?
The goal, according to the EV,C is to arrive at a framework that protects consumers while ensuring the continued efficiency and competitiveness of the industry. The Commission remains committed to fostering a fair, transparent, and consumer-centric telecommunications landscape.
“Today’s discussion is critical to refining our policies and ensuring that our regulatory approach aligns with the dynamic nature of the market. As we deliberate, I encourage open and constructive engagement, as your insights will be invaluable in shaping a framework that balances the interests of all stakeholders.”, the EVC noted.
Here are the takeaways from the draft guidance of unclaimed recharges
Regulatory Framework:
The NCC derives its authority from Sections 4(b) and (c) of the Nigerian Communications Act 2003, empowering it to protect consumers against unfair practices in the communications sector.
Core Principles:
Revenue Generating Events (RGEs): Activities that generate revenue for operators and determine the active status of prepaid accounts.
“Use it or lose it” Principle: A regulatory framework where unused resources are forfeited without refund after a period of inactivity.
Challenges with Refund Policies:
Airtime is not recognized as legal property that can be inherited
Prepaid credit is not equivalent to cash or a financial asset
Operational difficulties in implementing standardized refund procedures
Administrative burdens related to processing claims and identifying recipients
International Context:
The “use it or lose it” principle is common globally, especially in prepaid-dominant markets
Most jurisdictions (including the US, UK, South Africa, Kenya, and India) allow forfeiture of unused balances after inactivity periods
Consumer protection focuses on transparency rather than refunds
Proposed Solutions:
Subscribers with unclaimed recharges may receive service options (voice, data, value-added services) but balances cannot be monetized
Operators must implement consumer education campaigns about the new management approach
Subscribers must be notified about service options for churned accounts
Implementation Timeline:
Operators must comply with all guidance requirements within 90 days of issuance
The NCC will review audit reports of unclaimed recharges within 10 working days
Enforcement Mechanism:
The Commission will conduct periodic audits to ensure compliance
Non-compliance will result in penalties, including fines and other regulatory actions