NCC Proposes 12-Month Grace Period for Unclaimed Airtime Refunds

By Adejumo Toluwanimi


The Nigerian Communications Commission (NCC) has proposed a 12-month grace period for subscribers to reclaim unused airtime on deactivated lines. This move aims to protect consumer rights and promote transparency in the telecommunications industry.
The proposal was made by the Executive Vice Chairman/CEO of the NCC, Aminu Maida, During a virtual stakeholder engagement forum held in Abuja, in which he was  represented by the Executive Commissioner for Stakeholder Management, Rimini Makama.
He stated that the telecommunications industry has played a significant role in driving economic growth, financial inclusion, and digital transformation in Nigeria, stressing that the prevalence of mobile services and the flexibility offered by prepaid plans have benefitted millions of Nigerians.
According to him, with the evolving landscape, it has become necessary to address emerging challenges that could undermine consumer rights, saying that the proposed framework seeks to address the issue of unclaimed recharges when accounts become inactive.

Background

The NCC’s proposal is part of its efforts to address emerging challenges in the industry, particularly those that may compromise consumer rights. According to the Quality-of-Service Business Rules 2024, a prepaid line without a revenue-generating event for six months must be deactivated, and if inactivity persists for another six months, the line may be recycled.

Key Features of the Proposal

– 12-Month Grace Period: Subscribers will have one year to reclaim unused airtime from deactivated lines, provided they can verify ownership.

– Audit of Deactivated Accounts: Telecom operators will be required to conduct an audit of all churned numbers and submit detailed documentation of all unclaimed and unutilized recharges.

– Transparency and Accountability: Unclaimed recharges cannot be monetized but must be made available through service options to affected subscribers.

– Compliance Window: Operators will have 90 days to comply with the new rule.

Reactions from Telecom Operators

Major telecom operators, including MTN Nigeria and Airtel Nigeria, have raised concerns and recommendations regarding the proposal. Some of the concerns include:

– Deviation from “Use or Lose It” Principle: Airtel Nigeria noted that the policy deviates from the “use or lose it” rule, referencing countries like Ghana, Mexico, and India, which adhere to this principle.

– Need for Clear Guidelines: MTN Nigeria pointed out that the policy lacks a structured framework detailing procedural steps for subscribers to initiate and complete claims.

– Threshold for Unutilized Recharges: Some recommended a minimum threshold below which unutilized and unclaimed recharge balances are not required to be retained after line deactivation.

Implications and Next Steps

The NCC’s proposal aims to strike a balance between consumer protection and industry sustainability. If adopted, the rule will strengthen consumer recourse mechanisms while promoting fair business practices in the sector. The proposal is currently undergoing stakeholder input and is expected to be finalized following regulatory review.

Conclusion

The NCC’s proposal for a 12-month grace period to reclaim airtime on deactivated lines is a significant development in the telecommunications industry. The move has sparked reactions from telecom operators, who have raised concerns and recommendations. As the proposal undergoes further review and stakeholder input, it remains to be seen how the NCC will address these concerns and implement the new rule.