In a significant move to protect Nigerian consumers, the Central Bank of Nigeria and the Nigerian Communications Commission have jointly introduced comprehensive regulations mandating automatic refunds for failed airtime and data transactions. This framework addresses a persistent issue that has plagued telecom subscribers and digital payment users across the country for years.
New Regulatory Framework for Transaction Protection
The measures are detailed in an exposure draft dated February 5, 2026, which was officially released on Monday. This joint CBN-NCC framework establishes clear guidelines for all participants in the transaction ecosystem, including banks, mobile network operators, payment aggregators, merchants, fintech companies, and NCC-licensed service providers. The regulations aim to eliminate the financial losses subscribers experience when transactions fail without immediate resolution.
Defining Failed Transactions and Immediate Solutions
Under the new framework, a failed transaction is specifically defined as any instance where a customer's account is debited without successful delivery of the purchased airtime or data service. The cornerstone of these regulations is the requirement for automatic and instant reversals whenever such failures occur. Financial institutions and telecom operators must ensure customers receive prompt refunds when their accounts are debited without corresponding service delivery.
The regulators have also introduced a mandatory suspension mechanism for all airtime and data transactions during network downtimes exceeding ten minutes. During such service interruptions, operators must immediately notify affected customers and reverse any funds collected during periods of service degradation or complete outages. This provision directly addresses the avoidable losses subscribers suffer during poor network performance episodes.
Enhanced Monitoring and Transparency Systems
To improve transaction visibility across the entire value chain, the framework proposes several technological solutions. These include the implementation of real-time transaction codes, automated customer notification systems, and a comprehensive central monitoring platform. The CBN and NCC plan to establish a Central Monitoring Dashboard that will track transaction reversals, monitor service level agreement breaches, and record customer complaints systematically.
This dashboard will form part of a national failed transactions monitoring system featuring uniform error codes and end-to-end visibility across all stakeholders, including banks, payment aggregators, and mobile network operators. Additionally, all relevant parties will be required to maintain daily reports detailing both successful and failed transactions, which must be shared according to established standard operating procedures.
Specific Refund Timelines and Error Handling
The framework establishes clear timelines for transaction resolution, particularly for pending transactions with unclear outcomes. Banks and telecom operators must implement a "pending" error code for such transactions, which must then be treated as failed and reversed within a strict 24-hour window. Issuing banks are specifically tasked with processing instant refunds in cases of transaction timeouts, while regulators will actively monitor compliance with these refund timelines and impose sanctions on defaulting institutions.
Regular compliance audits will be conducted on banks, telecom operators, and their business partners to verify licensing status, assess operational capacity, and ensure adherence to service level agreements. These audits represent a proactive approach to maintaining system integrity and consumer protection.
Procedures for Erroneous Purchases and Consumer Protection
The draft framework also establishes detailed procedures for handling erroneous airtime or data purchases, including transfers to incorrect phone numbers or excessive top-ups. For transactions exceeding N20,000, customers must provide an affidavit of indemnity or a notarised indemnity letter before refunds can be processed. For smaller amounts between N1,000 and N20,000, refunds will require consent from the recipient through their mobile network operator.
In cases where airtime or data has been partially used after being credited in error, recovery options include placing liens on future credits or reversing funds after deducting reasonable administrative charges. These measures balance consumer protection with practical operational considerations.
Strengthened Consumer Safeguards
To enhance consumer protection further, all stakeholders must provide real-time refund updates to customers, display prices in standardized formats, and resolve customer complaints within 24 hours. The framework emphasizes data protection compliance, mandates regular service level agreement training for personnel, and promotes the adoption of standardized APIs to reduce integration failures across banking, fintech, and telecom systems.
This regulatory initiative comes as the NCC simultaneously conducts a comprehensive review of competition within Nigeria's telecom sector. The commission is examining whether recent increases in data and voice tariffs have resulted in improved service delivery for consumers, focusing specifically on how market structure, competition levels, and operator conduct affect the overall consumer experience.
The joint CBN-NCC framework represents a landmark development in Nigeria's digital financial ecosystem, establishing clear accountability mechanisms and consumer protection standards that could significantly improve the experience of millions of telecom subscribers and digital payment users nationwide.
