NCC, Telcos clash over compensation plan for poor network services

Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), has ordered mobile network operators to compensate subscribers for poor network services, sparking a clash with telcos who argue the directive is burdensome. Subscribers, however, are demanding even stronger measures, including full (100%) compensation for service failures.  

NCC, Telcos Clash Over Compensation Plan for Poor Network Services

The Nigerian Communications Commission (NCC) has taken a bold step to protect consumers by mandating telecom operators to compensate subscribers whenever service quality falls below approved standards.

This directive, announced in late March 2026, requires operators to issue airtime credits to affected users in specific locations where performance benchmarks are not met.

The move signals a shift toward stronger consumer protection in Africa’s largest telecom market, where over 182 million active telephone users have long endured dropped calls, slow data speeds, and unreliable connectivity.  

Telcos, however, are pushing back. They argue that the compensation plan could impose heavy financial burdens, especially in a sector already grappling with infrastructure challenges, high operating costs, and regulatory pressures.

Operators contend that service disruptions are often caused by external factors such as vandalism of telecom infrastructure, erratic power supply, and difficulties in securing foreign exchange for equipment imports. From their perspective, penalizing them without addressing these systemic issues may worsen the industry’s sustainability.  

On the other side of the debate, consumer advocacy groups such as the National Association of Telecoms Subscribers (NATCOMs) have welcomed the NCC’s directive but insist it does not go far enough.

NATCOMs President, Chief Deolu Ogunbanjo, described the move as a “long-overdue victory” for Nigerian consumers, while demanding 100% compensation for affected subscribers.

This reflects the frustration of millions of users who feel they have been shortchanged for years by paying for services that fail to meet expectations.  

The clash between regulators and operators highlights a deeper tension in Nigeria’s telecom sector: balancing consumer rights with industry realities. While the NCC’s consumer-centric approach is commendable, the sustainability of such compensation schemes depends on addressing root causes of poor service delivery.

Without significant investment in infrastructure, improved security for telecom assets, and stable economic conditions, telcos may struggle to comply without passing costs back to consumers in other ways.  

Ultimately, this confrontation could reshape Nigeria’s telecom landscape. If enforced effectively, the compensation framework may push operators to prioritize service quality and accountability.

Yet, if telcos’ concerns are ignored, the directive risks becoming another regulatory burden that stifles innovation and investment. The NCC must therefore strike a delicate balance, ensuring that Nigerian subscribers are protected while creating an enabling environment for operators to thrive.  

In the coming months, the outcome of this clash will determine whether Nigeria’s telecom sector moves toward a more consumer-friendly future or remains mired in disputes between regulators and operators.

For now, subscribers are watching closely, hopeful that this directive marks the beginning of a new era where their voices finally carry weight in shaping the services they rely on daily.