NCC to enforce subscriber compensation for poor network service from April

The Nigerian Communications Commission (NCC) has announced that its directive mandating telecom operators to compensate subscribers for poor quality of service will take effect from this month.

The Commission disclosed this in a Frequently Asked Questions (FAQ) document released on Tuesday, providing clarity on how the compensation framework will work and the categories of subscribers eligible to benefit.

According to the NCC, the directive applies specifically to Mobile Network Operators (MNOs) that fail to meet their Key Performance Indicators (KPIs) on Quality of Service (QoS).

The affected operators include the country’s major telecom providers — MTN Nigeria, Airtel Nigeria, Globacom, and 9mobile — although the Commission did not specify which of them failed to meet the required benchmarks.

The regulator clarified that a separate compensation framework is already in place for Internet Service Providers (ISPs).

The NCC stated that compensation will cover service failures affecting voice calls, data services, or SMS.

To qualify, subscribers must meet two conditions: They experienced poor network service in an affected Local Government Area; and; They made at least one outgoing revenue-generating event — such as a billed call, SMS, or data session — during the relevant period.

“Operators are required and mandated to identify affected subscribers and provide compensation directly,” the NCC stated.

It further explained that only service failures that fall below the defined thresholds set by the Quality of Service Regulations will qualify for compensation. Brief, isolated, or quickly resolved interruptions may not be eligible.

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The directive was first announced late last month in a statement issued by the NCC’s Head of Public Affairs, Mrs Nnenna Ukoha. The Commission described the policy as part of a broader effort to place consumers at the centre of Nigeria’s telecommunications ecosystem.

“Telecommunications services play a critical role in economic activities, social interaction, and access to digital opportunities. When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system,” the Commission said.

Industry analysts say the move signals a significant shift in regulatory strategy. In the past, the NCC typically imposed fines on operators that failed to meet QoS benchmarks, without direct financial relief to subscribers who suffered service disruptions.

Telecom policy analyst Adekunle Adebayo described the new approach as “a consumer-focused reform.”

“Instead of simply penalising operators, this framework ensures that the end-users who experience dropped calls, failed data sessions, or poor connectivity receive tangible compensation. It aligns with global best practices in telecom regulation,” he said.

However, experts also caution that enforcement and transparency will be key to the policy’s success.

“The Commission must clearly publish performance data and compliance reports to build trust in the system,” noted digital economy researcher Ifunanya Okeke. “Subscribers need assurance that operators are accurately identifying affected users.”

The compensation directive comes at a time when telecom operators are grappling with multiple operational challenges, despite continued investments in network expansion and upgrades.

One of the most persistent issues is fibre optic cable damage. According to NCC data, operators recorded an average of 1,100 fibre cuts per week last year — a problem often attributed to road construction, vandalism, and accidental damage during infrastructure projects.

Industry stakeholders argue that while operators must be held accountable for service quality, broader structural challenges — including infrastructure protection and rising operating costs — also need to be addressed to ensure sustainable improvements.

With the new compensation regime taking effect this month, subscribers across Nigeria will be watching closely to see how swiftly and transparently operators implement the directive.