NCC suggests 12-month grace period for reclaiming airtime on deactivated lines

The Nigerian Communications Commission (NCC) has proposed a 12-month grace period for subscribers to recover unused airtime on deactivated mobile lines.

The proposal was unveiled during a virtual stakeholder forum held in Abuja on Tuesday.

Dr. Aminu Maida, Executive Vice Chairman and CEO of the NCC, represented by the Executive Commissioner for Stakeholder Management, Rimini Makama, emphasized that the initiative seeks to balance consumer rights with the practical needs of the telecommunications sector.

Maida highlighted the significant role the telecommunications industry has played in Nigeria’s economic growth, financial inclusion, and digital transformation.

He noted that mobile services and the flexibility of prepaid plans have greatly benefited millions of Nigerians.

However, as the industry evolves, it is essential to address emerging challenges that may threaten consumer rights.

Maida explained that the proposed framework aims to tackle the issue of unused airtime that remains unclaimed when accounts become inactive.

According to the Quality-of-Service Business Rules 2024, a prepaid line without any revenue-generating activity for six months is considered inactive and is deactivated. If inactivity continues for an additional six months, the line may be recycled.

Under the new proposal, subscribers with deactivated lines will have a one-year period to reclaim any unused airtime, provided they can verify their ownership of the line.

Maida further explained that the initiative intends to strike a balance between protecting consumers and ensuring the efficient operation of the telecommunications industry.

He added, “The ongoing debate revolves around whether operators should refund unused airtime or if the ‘use it or lose it’ principle should apply. Our aim is to create a framework that safeguards consumers while ensuring the sector’s continued efficiency.”

During the forum, Mrs. Chizua Whyte, Head of Legal and Regulatory Services at the NCC, discussed the Draft Guidance on Unutilized and Unclaimed Subscribers’ Recharges, which is a crucial step toward fulfilling the NCC’s mandate to create regulations that support a thriving communications market.

She outlined several key provisions of the draft guidelines, stating that the 12-month window would allow affected subscribers to reclaim unused recharges once their lines are deactivated, as long as they can prove ownership.

The guidelines also require operators to conduct thorough audits of all churned numbers and submit documentation on unclaimed recharges to ensure transparency.

Additionally, the guidance mandates that unclaimed airtime cannot be converted into cash but should instead be made available through service options, such as voice, data plans, or other value-added services within the primary network.

Whyte acknowledged that unutilized airtime on churned lines represents both a consumer protection challenge and an opportunity for regulatory clarity.

She emphasized that the proposed guidance would ensure subscribers maintain access to their purchased credits, while giving operators clear regulatory direction.

The NCC is also requiring full compliance from operators within 90 days of issuing the guidance, alongside a comprehensive consumer education and notification campaign.

This initiative, she explained, aligns with international standards, as seen in countries such as the United States, the European Union, and India, where transparency and service alternatives are prioritized over cash refunds.

Whyte concluded by affirming the commission’s commitment to promoting a fair, transparent, and consumer-focused telecommunications environment, while the forum provided an opportunity for stakeholders to contribute their insights in shaping the final framework.