Telcos Pay for Network Failures as NCC Enforces Consumer Compensation

May 5, 2026

6:32 PM WAT

Nigeria’s telecommunications operators have started compensating subscribers for poor quality of service, following a directive from the Nigerian Communications Commission (NCC), even as millions of users continue to face persistent connectivity issues.


The move marks a rare instance of firm regulatory enforcement in a sector long plagued by dropped calls, slow internet speeds and inconsistent service delivery.


Findings show that major operators, including Airtel Nigeria and MTN Nigeria, have begun issuing airtime credits to affected subscribers for service disruptions recorded between November 2025 and January 2026.


Airtel customers have recently been prompted to check their balances using designated USSD codes, while MTN subscribers earlier reported receiving SMS notifications confirming compensation credited to their lines.


The compensation amounts remain modest, ranging from as low as ₦20 to about ₦600, depending on the severity of service disruption in specific locations.


The NCC clarified that the payments are not refunded, but regulatory compensation tied to operators’ failure to meet established quality-of-service benchmarks.


Executive Vice Chairman of the commission, Aminu Maida, said the initiative is part of broader efforts to strengthen consumer protection and enforce compliance across the industry.


Under the framework, network performance is assessed at the local government level, enabling regulators to determine the extent of service failures in different areas and apply compensation accordingly. Airtel has already commenced direct airtime credits to subscribers as part of the industry-wide rollout.


The development follows months of worsening network quality, which has disrupted business operations, financial transactions and communication nationwide, particularly in major urban centres.


Industry analysts say that while the compensation signals stronger regulatory oversight, it does little to tackle the underlying causes of the problem, including infrastructure gaps, rising operational costs and surging demand for data services.


The regulator’s latest action builds on earlier directives mandating operators to compensate subscribers, stressing that users should not bear the consequences of substandard service delivery.


Digital infrastructure analyst Teju Abolade noted that without sustained investment in network capacity and service improvements, the compensation regime may offer only temporary relief.


“Restoring network reliability remains critical to supporting financial inclusion, e-commerce and broader economic productivity, especially as Nigeria’s digital economy continues to expand,” he said.

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