NCC, telcos bicker over method of determining consumer compensation

2026-03-30 - 07:23

By Prince Osuagwu, Hi-Tech Editor The Nigerian Communications Commission (NCC) and the telecom operators in Nigeria were yesterday locked in an argument over the methodology of determining that the telcos have not served some consumers and therefore should pay compensation. Sunday night, the Commission slammed the operators for giving substandard services to some subscribers and directed that the Mobile Network Operators (MNOs) should pay compensation to subscribers whose network quality of service experience is below specified targets within specific locations. However, the telcos said it was not totally in bed with the methodology of arriving at the infractions claimed by the regulator and therefore demanded some explanations. President of the Association of Licensed Telecom Operators of Nigeria, ALTON, Engr Gbenga Adebayo said: “I am aware of the directive of the commission to my members. But, we are engaging them because some of my members affected are confused about how the commission arrived at such decisions. While we would also want to comply with the Commission’s directives, we are also obligated to ask questions where issues are not clear; and that’s the stage we are at now. Perhaps, we may have a resolution within the window of the Commission’s directive. In an official statement signed by the Head, Public Affairs of the Commission, Mrs Nnenna Ukoha, the Commission said: “ Our 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. “The directive is rooted in the Commission’s broader regulatory philosophy that places the consumer at the centre of Nigeria’s telecommunications ecosystem. 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. “While regulatory fines have traditionally served as a deterrent against poor service delivery, the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry. “The Commission has designed this measure to complement existing and ongoing efforts to strengthen service quality monitoring and enforce performance standards. “Further to this directive the Commission is also mandating Tower Companies who 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. “The Commission will continue to reinforce the obligation of operators to invest consistently in network resilience, capacity expansion, and infrastructure upgrades to meet the growing demand for telecommunications services. At the same time, it will deploy regulatory tools that promote fairness, transparency, and accountability across the sector, ensuring that every subscriber receives the quality of service they deserve while sustaining a telecommunications industry capable of powering Nigeria’s digital future”.