By Williams Ago
Telecom service providers are set to address the issue of forfeiture of unused prepaid credit by consumers after prolonged inactive lines known as "use it or leave it.”
According to the new policy, if implemented, the stakeholders are proposing that airtime should be non refundable and not equivalent to cash after lines are purchased and remains inactive for a very long period of time.
The event was hybrid, featuring in-person and virtual participation by staff of NCC, telecom companies and other concerned industry stakeholders
Dr. Aminu Maida, Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC) at the opening of the stakeholders forum engagement on unutilised and unclaimed subscribers recharges held on Tuesday (08/04/2025) virtually, expressed NCC's commitment towards ensuring Quality of Experience for telecom consumers.
Represented by the Commission's Executive Commissioner, Stakeholder Management, Rimini Makama, Dr Maida stated also that, "we must address emerging challenges, especially those that may compromise consumer rights. One of such is the fate of prepaid balances when accounts become inactive."
He explained that striking the right balance between safeguarding consumer rights, ensuring effective regulatory oversight, and maintaining industry sustainability requires a collective effort.
According to him, "The Quality-of-Service Business Rules 2024 stipulates that 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.
"Subscribers have the right to reclaim their unused credit within one year, provided they can demonstrate ownership", he pointed out.
He stated however that, the broader debate remains—should operators be required to refund unused airtime, or should the principle of "use it or lose it" prevail?
"Our goal is to arrive at a framework that protects consumers while ensuring the continued efficiency and competitiveness of the industry. The Commission remains committed to fostering a fair, transparent, and consumer-centric telecommunications landscape", he noted.
He described the discussion as critical, which is aimed at refining its policies and ensuring that its regulatory approach aligns with the dynamic nature of the market.
NCC's head of legal and regulatory services, Mrs Chizua Whyte, presented the Key provisions of the Draft Guidance to include: establishing a 12-month window during which affected subscribers can claim unutilized recharges after their lines have been churned, provided they can verify ownership. This balances consumer rights with operational practicality.
Secondly, requiring operators to conduct comprehensive audits of all churned numbers and submit detailed documentation of all unclaimed and unutilized recharges, ensuring transparency and accountability in the process.
Thirdly, directing that unclaimed recharges cannot be monetized but must be made available through service options to the affected subscribers, including voice offerings, data plans, and value-added services on the primary network.
Other synopsis during the engagement on unclaimed and unutilised subscribers included: Consumer Safeguards: Operators must notify users about forfeiture policies and offer service alternatives (e.g., • data/voice plans) instead of refunds. • Mandatory consumer education campaigns and awareness.
Operational Barriers Cross Network service options are impractical due to varying operator costs, administrative complexity, and airtime's legal status as a consumable service (see also CBN regulations)
Global Alignment: The framework matches with International best practices especially in the U.S., EU. India, etc., prioritizing transparency and service alternatives over cash refunds,
Compliance: Communications Service providers have 90 days to implement rules; non-compliance risks fines/audits. 'The Commission reviews audits within 10 days
Main Objectives of the Draft Guidance. The main objectives of the Draft Guidance are to: a. Provide a process for managing consumer recharges and credits through safeguards and service options. b. Provide billing transparency and clear benefits to consumers c. Set out clear and certain approaches that will provide regulatory certainty to the sector.
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