NCC begins subscriber compensation for poor network service

The Nigerian Communications Commission (NCC) has announced that its directive requiring telecommunications operators to compensate subscribers for poor quality of service will take effect this month, marking a significant shift in the regulation of Nigeria’s telecom sector.

The Commission disclosed this in a Frequently Asked Questions (FAQ) document released on Tuesday, providing further clarification on how the compensation policy will be implemented and the categories of subscribers eligible to benefit.

According to the NCC, the directive applies only to Mobile Network Operators (MNOs) that fail to meet the Commission’s prescribed Key Performance Indicators (KPIs) on Quality of Service (QoS). It added that a separate compensation framework already exists for Internet Service Providers (ISPs).

The Commission, however, did not identify which of the country’s major mobile operators—MTN Nigeria, Airtel Nigeria, Globacom or 9mobile—failed to meet the required service quality benchmarks.

The NCC explained that the compensation covers disruptions affecting voice calls, data services and Short Message Service (SMS).

To qualify, subscribers must have experienced poor network service in an affected Local Government Area and must have carried out at least one revenue-generating activity, such as a billed voice call, SMS or data session, during the affected period.

The regulator noted that the policy applies to both individual and corporate subscribers.

It further clarified that eligible customers would not be required to submit applications for compensation, as operators have been mandated to identify affected subscribers and credit them automatically.

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

The NCC added that only service failures falling below the thresholds prescribed in its Quality of Service Regulations would qualify for compensation, noting that brief or immediately resolved service interruptions may not be eligible.

The compensation directive follows an earlier announcement by the Commission directing Mobile Network Operators to compensate subscribers in areas where network performance falls below regulatory standards.

According to the NCC, the policy forms part of a broader consumer-centric regulatory framework aimed at ensuring Nigerians receive value for telecommunications services.

The Commission noted that telecommunications services have become essential for business, education, financial transactions, public services and social interaction, making service reliability a national priority.

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

The regulator described the initiative as a major departure from previous enforcement measures, under which defaulting operators were primarily sanctioned through regulatory fines while affected subscribers received no direct compensation.

The new approach is expected to provide direct relief to consumers while encouraging operators to improve network performance.

Despite ongoing investments in network expansion, the NCC acknowledged that operators continue to face significant operational challenges, particularly widespread fibre-optic cable cuts and infrastructure vandalism.

According to the Commission, telecom operators recorded an average of about 1,100 fibre cuts every week last year, a situation that has continued to affect service quality and network reliability across the country.