The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) are collaborating to create a new regulatory framework to resolve the problem of failed airtime and data recharges on electronic platforms like bank apps and USSD.
The Problem and Solution
- The Issue: Many consumers complain they are debited for failed transactions (like buying airtime) and often don’t receive an immediate refund or resolution, sometimes remaining in “pending” status for weeks.
- The Scale: An estimated one per cent to 3.6 per cent of electronic recharge transactions fail. While this percentage seems small, it represents a huge number of affected prepaid customers, making it the second biggest consumer issue in the industry. About 91 per cent of Nigerian telecom users recharge electronically.
- The Framework: The CBN and NCC are developing a system that will use a response code for every transaction. This code will allow regulators to identify where a transaction failed (which bank, telecom operator, or payment platform is responsible) and assign appropriate sanctions.
- The Goal: The initiative is designed to ensure that the consumer always gets the value they paid for. Dr. Aisha Olatinwo of the CBN stated that a failed transaction means “the transaction has not started,” and the customer should not lose money.
Enforcing Industry Standards
The new framework will mandate Service Level Agreements (SLAs) for all players in the electronic recharge ecosystem.
- Industry experts noted that the business grew quickly without first establishing required SLAs, leading to some service providers lacking the proper customer service or technology to manage failures.
- The mandated SLAs are expected to set a clear industry standard, forcing all companies to improve their technology and customer resolution processes.
Dr. Aminu Maida, NCC’s Executive Vice Chairman, stressed that the new efforts align with the commission’s goal of enhancing the Quality of Experience (QoE) for all consumers, moving beyond just measuring Quality of Service (QoS) to addressing every consumer interaction point.
