NCC orders telcos to compensate Nigerians for poor network service

Nigeria’s telecom regulator has directed mobile network operators to compensate subscribers when network service falls below required standards, marking a shift toward stronger consumer protection in Africa’s largest telecom market.

The Nigerian Communications Commission (NCC) said operators must provide compensation in the form of airtime credits to users affected by poor quality of service in specific locations where performance targets are not met.

In a statement issued over the weekend, Nnenna Ukoha, NCC spokesperson said the directive is aimed at ensuring that telecom customers do not carry the full burden when operators fail to deliver reliable services.

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Under the new rule, telecom operators will be required to compensate affected subscribers directly whenever there are breaches of Quality of Service Key Performance Indicators within defined time periods and locations.

The airtime compensation will be calculated based on subscribers’ average spending patterns and their presence in local government areas where service failures occur.

The regulator said the move reflects a broader shift in its regulatory approach, placing telecom consumers at the centre of the industry while strengthening accountability among operators.

“Telecommunications services today underpin economic activity, 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 NCC said.

Nigeria has more than 200 million active telecom lines and millions of people depend on mobile networks for business, banking, education and government services. However, complaints about dropped calls, slow data speeds and unstable connectivity have remained common in several parts of the country.

Industry analysts say the new directive could push operators to improve investment in network capacity and infrastructure, especially as demand for data services continues to rise across Nigeria’s digital economy.

Previously, regulators mainly relied on fines imposed on telecom operators when service quality fell below standards. The NCC said the new compensation model is designed to complement those measures by ensuring that affected customers receive direct benefits when disruptions occur.

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The commission also extended its directive to tower companies, which own key telecom infrastructure such as masts that support network coverage. It said these companies must invest in infrastructure improvements using funds generated from regulatory penalties, alongside other financial sanctions the regulator may impose.

According to the NCC, operators are expected to strengthen network resilience, expand capacity and upgrade infrastructure to keep up with growing demand for telecom services in the country.

The regulator said it will continue to use policy tools aimed at improving transparency and fairness across the sector while ensuring that subscribers receive better service quality.

The directive comes at a time when Nigeria is pushing to deepen its digital economy, expand broadband access and improve connectivity nationwide. Experts say stronger service quality enforcement will be crucial as telecom networks become increasingly central to economic growth and digital inclusion.