NCC orders telcos to compensate subscribers for poor network service

The Nigerian Communications Commission has directed Mobile Network Operators to compensate subscribers in areas where network quality falls below prescribed standards.

This was disclosed in a statement issued on Sunday by the Head of Public Affairs at the Commission, Nnenna Ukoha.

The directive comes as part of efforts to strengthen consumer protection and ensure that telecom users are not left to bear the impact of poor service delivery.

What they are saying

According to the Commission, affected subscribers will receive compensation in the form of airtime credits.

• “The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within specific locations.”  

The Commission’s position is that subscribers should not be made to bear the full burden of service disruptions where operators fail to meet prescribed standards of service delivery.

• “Under this directive, erring operators will compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPIs). 
• “Mobile Network Operators (MNOs) shall be required to pay these compensations for instances of poor quality of service recorded within specified time frames. 
• “The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur,” they stated

The Commission also directed Tower Companies to reinvest fines imposed on them into infrastructure improvements.

• “The Commission is also mandating Tower Companies, which own the critical infrastructure for Quality of Service delivery, such as masts, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate,” they added.

More insights 

The NCC explained that the directive is part of its broader regulatory approach aimed at placing consumers at the centre of Nigeria’s telecommunications ecosystem.

It noted that 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 stated.

The regulator added that the compensation policy is designed to complement existing measures to monitor service quality and enforce performance standards across the sector.

The Commission said it will continue to enforce compliance by requiring operators to invest in network resilience, expand capacity, and upgrade infrastructure to meet growing demand.

What you should know 

Nigeria’s telecom sector has faced persistent complaints over poor network quality, dropped calls, and slow data speeds. As a result of this, the NCC intensified efforts to strengthen service quality monitoring and enforce performance standards across the telecom sector.

• They introduced new Quality of Service (QoS) Regulations in 2024, which set strict Key Performance Indicators (KPIs) for telecom operators, covering metrics such as call drop rates, call setup success rates, and network congestion.
• Under these rules, operators are required to meet defined thresholds, with penalties starting from about N5 million per infraction and additional daily fines for continued breaches, reinforcing compliance across the industry.
• As a result of this policy violation, early this year, the commission announced that telecom operators are facing potential penalties of about N12.4 billion following multiple breaches of QoS obligations, in what regulators describe as one of the most aggressive enforcement drives in recent years.

Earlier enforcement actions included fines imposed on operators such as Globacom, Airtel, and IHS Towers, which were penalised a combined N45 million for specific infractions.