Nigeria sets 30-second refund rule for failed airtime, data transactions

Nigeria is tightening consumer protection in its telecoms and digital payments markets, introducing new rules that require failed airtime and data purchases to be reversed or refunded within 30 seconds, under a joint framework involving mobile network operators, banks and Communications Commission (NCC)-authorised licensees.

The new requirements are contained in a joint circular issued on Monday by the Central Bank of Nigeria (CBN) to banks, other financial institutions, including payment service providers, and the general public. The circular, titled “Exposure Draft of the Joint CBN–NCC Framework for Resolution of Failed Airtime and Data Purchase Transactions,” outlines a coordinated response to rising consumer complaints linked to failed transactions and delayed refunds.

The move follows growing incidences of failed airtime and data purchases in which subscribers’ bank accounts are debited without successful service delivery. To address the challenge, the Nigerian NCC, the CBN, mobile network operators, deposit money banks and other industry stakeholders met to design a resolution framework aimed at improving transaction efficiency, speeding up complaint resolution and establishing a clear chargeback process across Nigeria’s digital financial ecosystem.

The circular, signed by Aisha Isa-Olatinwo, director of Consumer Protection and Financial Inclusion at the CBN, states that under the framework, unfulfilled airtime or data deliveries must trigger an automatic reversal of debited stock into the NCC-authorised licensee’s stock position. Mobile network operators are required to complete the reversal within 30 seconds, with the process currently being tested in a sandbox environment designed to simulate failed transactions and ensure seamless reversals.

According to the CBN, the framework was developed by its Consumer Protection and Financial Inclusion Department in collaboration with the Consumer Affairs Bureau of the NCC, mobile network operators, banks, payment service providers and other relevant stakeholders. It is intended to address escalating consumer dissatisfaction arising from failed airtime and data purchases where customers are debited without receiving value.

“This development buttresses the need for the proposed framework to institutionalise clear accountability, standardise resolution timelines and ensure a sustainable, coordinated approach to consumer redress across the financial and telecommunications ecosystems,” the circular said. The draft framework has been released for public consultation, with comments requested from banks, financial institutions, payment service providers and the general public by February 20, 2026.

The guidelines cover multiple failure points across the transaction value chain, including bank-level transaction failures, delivery failures by NCC-authorised licensees, and unsuccessful handoffs between mobile network operators and licensees. Where a transaction fails at the bank level, customers are entitled to immediate refunds, with banks, NCC-authorised licensees and mobile network operators jointly responsible for resolving such failures in real time.

For failed transaction deliveries originating from NCC-authorised licensees, refunds must be processed upon confirmation of the failure. Breakdowns between mobile network operators and licensees require instant reversals to the original issuer, applying across payment channels, including bank-to-bank and bank-to-non-bank transactions.

The framework also mandates real-time handling of failed transactions linked to barred lines or incorrect number ranges. In such cases, customers must be notified immediately of the failure, with explanations provided using transaction error codes supplied by mobile network operators and communicated through the relevant stakeholders.

Regulators say the measures reflect mounting pressure to reduce friction in Nigeria’s digital payments and telecoms markets, where service disruptions and delayed refunds have repeatedly undermined consumer confidence. By enforcing near-instant refunds and clearer accountability among operators, banks and licensees, the framework seeks to strengthen trust in electronic airtime and data purchases while aligning transaction handling with global best practices.

“The sale of airtime and data in Nigeria operates under a dual regulatory authority involving the Nigerian Communications Commission and the Central Bank of Nigeria,” the CBN said. “While the NCC regulates telecom infrastructure, players and delivery channels, the CBN regulates the financial institutions that facilitate these purchases. This convergence of communication and finance calls for strong inter-regulatory collaboration to ensure transaction success, consumer satisfaction and system integrity.”