The Nigerian Communications Commission (NCC) has announced a new draft proposal mandating telecommunications operators to implement strategies that prevent customers from losing unused airtime associated with inactive SIM cards.
This initiative was unveiled during a high-level virtual stakeholder engagement forum held on Tuesday, titled ‘Draft Guidance on Unutilised and Unclaimed Recharges.’ The NCC aims to enhance consumer protection within Nigeria’s dynamic telecommunications landscape.
Aminu Maida, the Executive Vice Chairman (EVC) of NCC, who was represented by Rimini Makama, Executive Commissioner for Stakeholder Management, underscored the necessity of addressing the issue of unused prepaid credit on dormant lines, which affects millions of subscribers across the country.
Maida pointed out the rapid expansion of mobile subscriptions and the prevalence of prepaid plans, stating, “Prepaid plans have offered millions of Nigerians essential flexibility and affordability in mobile services. However, as the sector progresses, it is crucial to tackle emerging challenges that could undermine consumer rights.”
He highlighted the importance of finding a balance between protecting consumer rights, ensuring effective regulatory oversight, and sustaining industry growth. The forum serves as a platform to explore actionable solutions for this matter.
The proposed Quality-of-Service Business Rules 2024 stipulate that prepaid lines without revenue-generating activities for six months will be deactivated. Should inactivity continue for an additional six months, the line may be recycled. Subscribers will retain the right to reclaim their unused credit within one year, provided they can prove ownership.
“It is essential to ensure that consumer interests are not compromised through the forfeiture of unused credit,” Maida added.
The NCC is dedicated to promoting a telecommunications environment that is fair, transparent, and centered around consumer needs.
In her presentation of the draft, Chizua Whyte, Head of Legal and Regulatory Services at NCC, outlined explicit procedures for managing inactive subscriber accounts. She emphasized that operators would be required to conduct thorough audits of churned numbers and ensure that unused airtime is returned to subscribers through alternative service offerings, avoiding any monetization of forfeited recharges.
“The challenge of unutilised and unclaimed recharges on churned subscriber lines presents both a consumer protection concern and a regulatory opportunity,” Whyte noted. Many subscribers leave behind unused credits when disconnected after prolonged inactivity as per the quality of service regulations.
This draft guidance aims to establish clear, equitable, and transparent protocols for handling these funds, ensuring that subscribers maintain access to their purchased credits while providing operators with necessary regulatory clarity.
The NCC’s draft guidance specifies that operators must inform subscribers about the plan to offer service options for churned accounts. All unclaimed and unutilized recharges cannot be monetized; instead, affected subscribers may be offered options such as voice services, data plans, and value-added services using their unused recharges after churn, which cannot be transferred between networks.
Operators are also required to implement consumer education initiatives to inform subscribers about the new management approach for unclaimed and unutilized recharges.
Regarding compliance, the NCC has set a deadline for operators to adhere to the guidelines within 90 days from the date of issuance. The commission will review all audit reports concerning unutilized recharges within ten working days and will conduct regular audits and inspections to ensure adherence to these guidelines. Non-compliance may lead to penalties, including fines and other regulatory actions as stipulated in the relevant Act.
The final version of the guidance is anticipated to be refined based on stakeholder feedback and formally adopted in the forthcoming months.
