The Nigerian Communications Commission and the Central Bank of Nigeria are collaborating to develop a new framework aimed at resolving the recurring issue of failed airtime recharge and data subscription transactions carried out via electronic channels such as banking apps and USSD platforms.
The joint initiative follows increasing complaints from consumers who lose money due to failed transactions that result in debits without corresponding value. In several cases, such transactions remain in “pending” status for weeks without resolution.
Speaking at the 94th edition of the Telecom Consumer Parliament in Lagos, the CBN’s Director of Consumer Protection and Inclusion, Dr. Aisha Olatinwo, said the framework, spearheaded by the NCC, will ensure that consumers receive full value for their electronic transactions at all times.
“It’s very important to understand that if a transaction failed, then the transaction has not started. So, part of what we’re working together with NCC is to ensure that from start to finish, there is a response code, so we know where the failure is, we know which participant is failing, and we assign appropriate sanctions,” she said.
“The consumer must get value for what they paid for. And I think at the end of the day, if we check that behavior and put in place corrective measures, you will see minimal failure points.”
Providing insight into the challenge, Assistant Director at the NCC, Mr. Quasim Odumbaku, referenced a Mastercard report indicating that about 91% of telecom consumers in Nigeria rely on electronic channels for airtime recharges.
He added that other studies estimate between 1 per cent and 3.6 per cent of these transactions fail—a significant concern for regulators in a market where 98 per cent of subscribers are on prepaid plans.
Odumbaku noted that failed recharges now rank as the second most pressing consumer-related issue in the telecommunications industry.
“When you look at the total market, that’s huge. 1% is not much in terms of the percentage, but it is huge in terms of actual numbers. It’s an issue that cuts across different platforms,” he said.
Also speaking, the Managing Director of Credit Switch, Mr. Tayo Adigun, attributed the problem to the industry’s rapid growth, noting that it had advanced faster than the supporting systems.
However, he expressed confidence that the new framework being developed by the NCC and CBN, which mandates a Service Level Agreement for all stakeholders—will help resolve the issue.
“The industry is ahead of itself in the sense that we had started the business before we actually had a service level agreement.
“We have people who don’t have customer service or the technology or the investments you need to put in place before offering the service. But I’m very sure that once this SLA is in place, where everybody knows what the standard is, everyone will sit up,” he said.
According to him, the goal of the forum was not only to highlight the challenges facing the industry but also to outline concrete steps the regulator is taking to address them, particularly those affecting consumers.
He emphasized that consumers remain central to the NCC’s mandate, noting that the theme of the Parliament, “Addressing Network Quality for Improved Consumer Experience,” was both timely and significant.
