Regulatory Update: Nigerian Communication Commissions Publishes Draft Guidance on Unutilised and Unclaimed Recharges, 2024  

Introduction

The Nigerian Communications Commission (“NCC” or “the Commission”), in the exercise of its regulatory powers under the Nigerian Communications Act 2003 (“NCA” or “the Act”), has published the Draft Guidance on Unutilised and Unclaimed Recharges in the Nigerian Communications Sector, 2024 (“Draft Guidance”).

The Draft Guidance seeks to establish a regulatory framework for the treatment of unutilized and unclaimed recharges by telecommunications operators and service providers in Nigeria. It defines the obligations of service providers, prescribes mechanisms for managing such recharges and sets out compliance requirements to ensure transparency and consumer protection

Key Highlights of the Draft Guidance 

The Draft Guidance introduces critical regulatory measures regarding the administration of unutilised and unclaimed recharges within Nigeria’s communications sector. The key provisions are summarised as follows:

1. Definition and Scope: The Draft Guidance provides a clear definition of unutilised and unclaimed recharges, encompassing prepaid airtime and data balances that remain inactive or unredeemed beyond a prescribed period.
2. Obligations of Telecommunications Operators: It outlines the obligations of network service providers regarding the identification, documentation, and reporting of unutilised and unclaimed recharges. It also mandates enhanced transparency and accountability in the treatment of such recharges.
3. Consumer Protection and Transparency Measures: The Draft Guidance introduces measures aimed at protecting consumer rights, ensuring that customers are adequately informed of their recharge balances, expiry timelines and potential disposition of unclaimed recharges.
4. Regulatory Oversight and Compliance: The NCC will oversee compliance with the provisions of the Draft Guidance, requiring service providers to submit periodic reports on unclaimed recharges and their management practices. Enforcement mechanisms include regulatory audits and potential sanctions for non-compliance.
5. Framework for Utilization and Reallocation: The Draft Guidance prescribes the conditions under which unutilised recharges may be reallocated, repurposed or subjected to further regulatory directives. It also contemplates regulatory oversight in determining the final treatment of such recharges to prevent potential consumer exploitation.

Stakeholder Engagement and Submission of Comments

Pursuant to Section 57 of the Act, the Commission has invited stakeholders and industry participants to review the Draft Guidance and make written submissions on or before Friday, April 4, 2025 before its finalisation to stakeholders@ncc.gov.ng.

Additionally, a Virtual Stakeholders’ Forum has been scheduled for Tuesday, April 8, 2025, at 11:00 a.m, to facilitate industry discussions and stakeholder engagement. The virtual meeting link will be available on the Commission’s website on April 7, 2025. Stakeholders and interested parties can access the draft documents on the NCC website.

Conclusion 

The Draft Guidance represents a significant regulatory development in the Nigerian communications sector, with far-reaching implications for telecommunications operators, service providers and consumers. Industry stakeholders are encouraged to actively participate in the consultative process by submitting comments and attending the Stakeholders’ Forum.

For further inquiries or legal advisory services regarding the Draft Guidance and its implications, please contact our Technology, Media & Telecommunications (TMT) Practice at info@doa-law.com.