Telecom
Satellite Spending Soars to $12Bn

Satellite operators Intelsat, SES, Eutelsat and Inmarsat are spending billions of dollars on high throughput space assets to deliver faster broadband for shipping
The top four operators of satellites for the maritime sector are investing around US$8.5 billion in new satellites, which will provide huge gains in broadband capacity for VSAT applications.
It is probable that the rest are investing, combined, at least another US$4 billion, if this includes a new constellation of L-band satellites by Iridium Communications.
Intelsat is spending up to US$2 billion on satellites over the next three years, peaking this year at up to US$800 million on high throughput and media satellites.
In the second half of this year Intelsat intends to launch three satellites. This could be followed by another three in 2017 and three in 2018.
Some of these will be used to replace existing satellites, while others are forming the new EpicNG constellation of high throughput Ku-band satellites.
The first of these, Intelsat 29e was brought into operation in the second quarter of this year. It delivers high throughput VSAT for ships operating in the Caribbean and over the North Atlantic.
According to Intelsat director of mobility product management Mark Richman, Intelsat 33e will be launched in August this year, and then Intelsat 32e early in 2017 to boost the EpicNG coverage.
Intelsat 33e arrived at the Guiana Space Center in French Guiana in late July in preparation for its launch on an Ariane 5 rocket. There are also plans to launch Intelsat 35e in the second quarter of 2017, and Intelsat 37e in the second half of 2017.
“EpicNG is moving forward as scheduled,” Mr Richman said. “The next main event will be bringing Intelsat 33e into service. Then it is building and launching the rest of the EpicNG constellation. Intelsat 29e has coverage over Latin America, the Caribbean, North America’s East Coast and the North Atlantic to Europe. Intelsat 33e will provide coverage over Asia, Africa, the Mediterranean and the Indian Ocean.”
The company also plans to launch Horizon 3e to provide spot beam coverage over the Pacific from 2018. “We will then add multiple layers of coverage and redundancy over critical areas of maritime traffic,” said Mr Richman. “The IS-32e satellite is planned to provide more coverage over the Caribbean and the North Atlantic. We will be increasing the coverage in key areas to address the expected growth in ship broadband.”
He continued: “We expect a 60 per cent increase in ship-to-shore traffic in the coming years. This is pretty significant for operations. And crew are bringing more mobile devices on board as they have high expectations for crew welfare services. They are deciding where they want to work according to the crew welfare that is on offer.”
Inmarsat has spent US$1.6 billion on its fifth generation constellation and Global Xpress Ka-band platform.
It has also announced it will proceed with a sixth generation of satellites with Ka-band and L-band transponders, which is likely to need similar amounts of investment as the Inmarsat-5 constellation.
In July, Inmarsat extended its long-term strategic partnership with VT iDirect to develop the next generation of satellite communications technologies.
This expands on the development of the Global Xpress technology. Research and development will create new solutions to support the growing integration of satellite and terrestrial networks.
They will also develop smaller, more powerful terminals, and study the boosting of waveform performance. This is part of the Inmarsat Communications Evolution initiative, which is a public-private partnership between Inmarsat and the European Space Agency.
SES plans to invest €2.8 billion (US$3 billion) over five years on new satellites. This is on top of the €900 million it spent on acquiring rival satellite operator O3b Networks and the €1.2 billion in debt it took on, according to a recent presentation it gave to investors. The capital investment includes five satellites, of which three will have high throughput spot beams over maritime areas.
Growth in satellite capacity is in response to rising demand for broadband VSAT on commercial ships, offshore vessels and cruise ships. SES expects the number of ships with broadband connectivity to double from 13,200 in 2015 to more than 32,000 in 2020. SES sales director Giovanni Auciello said these ships will be able to connect to a multi-layer of satellite coverage. “Our next generation satellites are Ku-band, SES-14, SES-12 and SES-15, which are under construction and should be launched by the end of 2017 and operating in 2018.” The O3b satellites provide Ka-band to maritime from at least 45 degrees north and south of the Equator. Cruise ships sailing in the Caribbean are already using O3b coverage.
Eutelsat intends to invest €1.3 billion in satellites and ground infrastructure over the next three years, which could result in the addition of six satellites. Not all of these will service the maritime broadband market, though.
Eutelsat is considering very high throughput satellites that could be launched after 2020. Others have invested in new satellites. Telenor has invested around NKr1.6 billion (US$187 million) in its Thor 7 regional Ka-band service. ViaSat Inc and Telesat are investing in new high power satellites. All this is estimated to be at least US$1 billion in total.
The investment will help to double, to 240, the amount of demand for wide beam satellite transponders that provide broadband in C-band and Ku-band.
According to Northern Sky Research (NSR) the high throughput satellite capacity demand within maritime will rise from just 2 Gbps in 2015 to a huge 46 Gbps in 2025.
“There is a strong focus on new launches of high throughput satellites for the mobility broadband market for maritime and aviation,” said NSR senior analyst Brad Grady. “There is a tremendous amount of bandwidth coming over the next few years. It will be more competitive for the service providers for streaming data and providing value-adding services.”
He expects more market demand for roaming on Ku-band and Ka-band, a small but stable market for C-band, and the need for L-band for safety or machine-to-machine communications. “Satellite operators are developing a capacity ecosystem, investing in new high throughput satellites to capture that mobility market. We expect to see a number of new geostationary high throughput satellite launches coming over the next few years, which will help to increase capacity demand to 46 Gbps in 2025.”
Aside from VSAT, Iridium is preparing to launch the first group of new L-band satellites that will form its Next constellation. It estimated that total capital expenditure in Next would be around US$3 billion, including more than US$600 million this year. This will be the platform for the new Iridium Certus maritime communications service, which is due to begin in 2017.
The first shipment of Thales Alenia Space-built satellites is due to be launched in September. Other launches will follow over the next 12 months. A total of 81 satellites are scheduled to roll off the assembly line, with 66 serving as operational satellites to replace the existing Iridium network, and the remainder serving as ground and in-orbit spares, said Iridium director of product management Brian Pemberton.
When these satellites are launched and commissioned, this will allow Iridium to start its Certus maritime broadband service. “We are working with value-adding resellers, and recruiting more providers across the maritime market by the end of this year,” said Mr Pemberton. “We will start testing the terminals in the first quarter of 2017. We should have commercial services in the second quarter.”
Iridium director of maritime business Kyle Hurst said the initial service will deliver 350 Kbps of bandwidth, which could be doubled through a software update. But the new constellation will ultimately be able to deliver data streams of up to 1.4 Mbps. To achieve this, Iridium is working with suppliers, principally Cobham Satcom and Thales, to offer Certus terminals for a variety of bandwidth capabilities. “We are working with terminal providers and on commercial models for our partners,” said Mr Hurst. “Our new terminals will be up to 1.4 Mbps. We are looking at applications to further enable what we can do with Certus.”
Thuraya Telecommunications Co has started planning for a new constellation to replace its existing satellites. Thuraya-2 has an operating life to 2020 and Thuraya-3 to 2025. “We need next generation plans and expect to share this strategy by the end of this year,” said Thuraya marketing vice-president Christian Cull. “We will also have new products coming later this year. We are expecting tremendous growth in data for improving operations through real-time information and data analytics. These are good reasons for ship operators to look at changing satellite communications and investing in technology.”
Marlink was one of the first to use EpicNG for a maritime customer. An MSC Cruises vessel MSC Divina is using the Ku-band spot beams from the Intelsat 29e satellite for passengers’ broadband requirements. According to Marlink maritime president Tore Morten Olsen, there will be strong growth in passenger broadband demand. This can be met through EpicNG spot beams. “The infrastructure is already on board so ship operators do not need to make any changes,” he said. “And they do not notice the change-over as this is an overlay of the Ku-band fabric through IntelsatOne Flex.”
He also expects that Inmarsat’s Ka-band Fleet Xpress services will be integrated into Marlink’s solutions. “Ku-band and Ka-band can work together in our portfolio. There does not need to be a single solution. The focus is to provide peace of mind to our clients as we see more growth in VSAT. We are now offering a global 60cm antenna network for maritime as more capacity is available.”
KVH Industries has seen increasing use of its mini VSAT Broadband for transmission of operations data. KVH vice president of marketing Mike Mitsock said owners are able to reduce fuel costs and reduce risk by using this data. “A 10 per cent reduction in fuel costs can be achieved,” he said. “Route plans can be optimised by using weather routeing, and the risk of machinery damage can be mitigated.”
Mr Mitsock said KVH was looking at how to provide data analysis and fault diagnostics for owners. “We would proactively help owners by telling them that something needs to be fixed, so they can plan for the next port call or drydocking.” The challenges are how to get the data off the ship to a data centre and to analyse it. “The size of the files would be huge to upload, as ships could generate terabytes of data over a year. So we need to find a better way, to optimise the uplink,” he explained.
A solution would be to do the initial data analytics on the ships. “Not all of the data needs to go off the ship.” Mr Mitsock added: “More analytics should happen on board. Some manufacturers are embedding analytics into the sensors so they can identify issues. We are working with software agents to develop local processing and analytics, so less data is sent to shore.”
Network service devices are a vital element for optimised broadband. Marpoint has developed the EVO² device as an enterprise-grade router for controlling a multi-person vessel network on all satellite broadband installations. This can include VSAT, FleetBroadband, Iridium, 3G, and WiFi. Business development director Anastasis Kyrkos said EVO² uses bandwidth allocation policies and network management to allow the running of multiple applications for crew internet, business email, file transfers, and video streaming. “All vessels will require innovative hardware and software network solutions to handle all their ship-to-shore and shore-to-ship communications needs,” he said.
Navarino has included full redundancy in its network service platform Infinity Cube. “It can switch between nodes and will allow several applications simultaneously,” said communications vice-president Christian Vakarelis. “It can automatically select the satellite network, maintaining connectivity, including continuous voice over IP and data transmissions.” It can operate GTMaritime’s email application, online training and chart applications. Navarino recently agreed to host C-Map’s digital navigation solutions on Infinity.
Telecom
Sophos Expands AI Capabilities with Arco Cyber Acquisition

Sophos, a global leader of innovative security solutions for defeating cyberattacks, today announced it has acquired UK-based Arco Cyber, a cybersecurity assurance company dedicated to helping organizations improve their security posture while staying ahead of compliance requirements and emerging threats.

Sophos
The acquisition is an important step in Sophos’ strategy to help organizations strengthen cybersecurity strategy and governance across all levels of maturity, delivered through the company’s global partner ecosystem.
Sophos refers to this as Sophos CISO Advantage, a set of capabilities designed to scale the knowledge, judgment, and operating discipline of a world-class CISO to organizations with or without dedicated security leadership, combining agentic AI, integrated platforms, and trusted human expertise delivered in partnership with managed service providers (MSPs) and managed security service providers (MSSPs).
Advances in agentic and AI-assisted systems now make it possible to deliver real-time insight into control performance, while remaining grounded in human oversight and judgment.
Arco Cyber accelerates this vision by adding capabilities that help organizations continuously validate whether security controls are effective, map controls to risk and compliance frameworks, and present clear, executive-ready insight that supports better decision-making.
“There is no shortage of exemplary security technology in the market,” said Joe Levy, CEO of Sophos. “What’s missing for most organizations is the ability to govern those tools, understand whether controls are actually working, and make informed decisions about risk. Arco has built a platform and a team that offers clarity, accountability, and proof.
“That work directly supports our strategy, and it gives customers a stronger foundation for simplifying compliance and managing cyber risk with confidence.”
A critical element of Sophos CISO Advantage is the role of MSPs and MSSPs in delivering these capabilities at scale. Most organizations rely on trusted partners to translate insight into action, provide context, and guide day-to-day decision-making.
Sophos CISO Advantage is designed to strengthen that relationship by equipping partners with AI-driven governance, continuous assurance, and clear risk insight, enabling them to deliver CISO-level leadership as a service.
This approach allows MSPs and MSSPs to elevate their role from technology operators to strategic security advisors, while giving customers greater clarity, control, and confidence in how cyber risk is managed.
Addressing a Leadership Gap in Cybersecurity
There are an estimated 359 million organizations worldwide, yet fewer than 32,000 have a Chief Information Security Officer (CISO).
Those with CISOs or other dedicated security leadership also require clear risk assessments, governance, prioritization, and demonstrability of security effectiveness to boards, regulators, and insurers.
“As cybersecurity matures beyond alerts and point solutions, organizations are increasingly focused on proving impact, not just activity,” said Phil Harris, Research Director, Governance, Risk and Compliance Solutions at IDC. “Boards, regulators, and insurers want clear evidence that security investments are reducing risk and strengthening governance. Platforms that integrate detection and response with assurance, advisory, and risk-based measurement are better aligned with how organizations actually operate.
“The Sophos and Arco Cyber combination represents a new category of platform-led cybersecurity that connects operations, assurance, and risk-based outcomes.”
For organizations with a CISO or similar leadership, Sophos CISO Advantage will provide a more efficient, integrated way to manage risk, track progress, and communicate outcomes. For organizations without one, it will deliver practical, CISO-level guidance that helps them take control of their security posture and decisions.
“Arco was founded to help organizations move from assumption to proof in cybersecurity,” said Matt Helling, CEO and co-founder of Arco Cyber. “By joining Sophos, we can deliver against that mission and reach far more customers who are struggling to demonstrate control effectiveness, prioritize risk, and justify security decisions.
“Sophos shares our belief that cybersecurity should deliver clarity, confidence, and control, not just data. Together, we can help organizations of all sizes turn security into a managed, defensible business discipline.”
Arco Cyber will join Sophos as a dedicated team to advance Sophos CISO Advantage. Its technology and expertise will be integrated into Sophos Central, the platform which delivers Sophos’ broader ecosystem including advisory services, managed detection and response (MDR), and partner-delivered services that enable MSPs and MSSPs to scale cybersecurity strategy for their customers.
Telecom
Inside Nigeria’s Telecom Exploitation Crisis Draining Household Budgets

By Blaise Udunze
For about a year now, millions of Nigerians relying on the internet to make a living have been groaning over the manipulation of airtime and data consumption that has turned into a relentless drain on household budgets. Painfully, individuals and businesses buying airtime or data increasingly feel less like paying for a service and more like entering a wager whose odds are permanently stacked against the consumer. Around the nooks and crannies of the country, across cities and rural communities alike, subscribers tell the same weary story of data that evaporates mysteriously, airtime consumed faster than reason allows, and customer care responses that sound rehearsed rather than responsive.

Inside Nigeria’s Telecom Exploitation Crisis Draining Household Budgets
The majority will agree that this collective frustration is not a coincidence, nor is it merely the product of careless smartphone use, because others might argue that there are several technical factors inducing rapid mobile data usage. Leave it or take it, it is the outcome of a broken ecosystem where multinational telecom companies wield immense power in an environment marked by weak institutional checks, limited transparency, and a population stretched thin by economic hardship.
The recent 50 per cent upward adjustment of telecom tariffs, later revised in policy conversations to 35 per cent, has intensified this tension, though it is not justifiable as exploitation. For millions of Nigerians already battling inflation, currency volatility, and shrinking purchasing power, the hike landed not as an economic necessity but as an additional burden. When communication costs begin to claim up to 15 per cent or, in some cases, nearly 30 percent of the national minimum wage, something fundamental has gone wrong. Access to communication is no longer a luxury; it is the infrastructure of modern survival. Yet the price Nigerians are now paying for this access is becoming socially and economically unsustainable.
A published report showed that as of January 2025, statistics from the Nigerian Communications Commission (NCC) disclosed that there were 141 million Internet users via the narrowband (GSM), while broadband penetration stood at 45 per cent. Data consumption has increased to 1,000,930.6 terabytes.
A review of the multinational telecom companies indicated that the new tariff for MTN’s revised data prices showed the 1.8GB monthly plan now goes for N1,500, against the previous 1.5GB plan priced at N1,000. The 20GB plan has been adjusted to N7,500, up from N5,500, while the 15GB plan now costs N6,500, rising from N4,500.
Under this new pricing regime, the same would be said of Airtel as it has replaced its cheapest monthly data plan of 1.2GB plan for N1,000 with 2GB plan for N1,500. For 3GB for N2, 000 (from 1.5GB at N1, 200), 4GB for N2, 500, formerly 3GB at N1, 500, and 8GB for N3, 000 (formerly 4.5GB at N2, 000). Other adjustments include 10GB for N4, 000 (formerly 6GB at N2, 500), 13GB for N5, 000 (from 10GB at N3, 000), 18GB for N6, 000 (formerly 15GB at N4, 000) and 25GB for N8, 000 as this replaces 18GB at N5, 000.
Further, the 75GB monthly bundle, which costs N16, 000 has been renamed as plan, costing N20, 000; 100GB for two months, costing N20, 000 have been upgraded to 150GB to cost N40, 000, while 400GB for three months, which cost N50,000 is now upgraded to 480GB to cost N120,000.
The bubble burst was further complicated tariff increase, which is the resurgence of widespread complaints about rapid data depletion. The issue is that businesses, students, families, and professionals are now raising alarms that data bundles, which previously lasted weeks, now disappear in days or even hours, which is questionable. Another critical area affected is small and medium-sized enterprises that rely on cloud services, digital marketing, logistics platforms, and online payments are finding their operating costs spiraling without any justification. For many, the crux of the matter is that profitability is being quietly eroded, not by poor business decisions, but by the rising cost and unpredictability of connectivity.
The telecom operators, backed by the regulator, have responded with familiar explanations that have always favoured their unscrupulous and illicit activities, with the explanation that data, they say, depletes faster because of background applications, automatic updates, high-definition streaming, malware, faster networks, and users’ failure to manage device settings. Technically, these explanations are not false because modern smartphones are indeed data-hungry, and digital behaviour has evolved. But this defence, repeated endlessly, misses the deeper issue, as the fact is that the problem Nigerians are confronting is not simply that data is consumed; it is that the system governing how data is measured, billed, and explained is not transparent, hard to understand, unaccountable, and tilted entirely in favour of the service providers.
In Nigeria’s telecom market, operators are both the umpires and the players. They measure usage, bill customers, interpret anomalies, and adjudicate complaints, which does not create ground for fair play. Subscribers, on the other hand, are expected to accept consumption figures hook, line, and sinker, which they cannot independently verify. An unacceptable fact is that there are no universally accessible, third-party audited data meters that allow users to confirm what they have truly consumed in real time. Customers and service providers do not have equal access to information; this asymmetry creates fertile ground for silent overbilling, whether intentional or structural, and it erodes trust in a sector that should be built on transparency not obscurity.
One critical aspect that must be addressed squarely is that the regulatory weakness compounds the problem. While the Nigerian Communications Commission possesses statutory authority, enforcement has often appeared slow, reactive, and insufficiently punitive. Penalties imposed on multinational firms with billion-dollar balance sheets rarely feel consequential. Investigations drag on, public disclosures are limited, and even when infractions are established, consumers seldom receive refunds. In such an environment, corporate restraint becomes optional. Where regulators lack teeth, corporations inevitably test boundaries.
The market structure itself offers little relief as the market setup does not protect consumers. Nigeria’s telecom sector is effectively oligopolistic, dominated by a few large powerful players with similar pricing models and limited incentive to compete on fairness. Tariff structures are deliberately complicated and complex, with multiple conditions and layered with bonuses, rollover conditions, expiry clauses, and promotional data that behaves differently from paid data. For the average subscriber, understanding these distinctions is exhausting. Complexity becomes a strategy, not an accident, reducing accountability while increasing revenue certainty for operators.
Though economic pressure on the telecom companies is real, and it must be acknowledged, knowing fully well that exchange rate volatility, energy costs, vandalism, and inflation have hurt profitability. Airtel’s revenue decline and MTN’s reported losses underscore the financial strain facing operators in Nigeria’s macroeconomic climate. It must be understood that corporate hardship does not justify consumer exploitation. The risk arises because multinational firms are subjected to pressure to meet global revenue targets and repatriate profits, adopt aggressive monetisation strategies in markets where regulation is weak and consumer resistance is fragmented.
From experiences thus far, the human cost of this imbalance is becoming impossible to ignore. From students like Abiodun Yusuf, who spends most of his allowance on data that barely supports his academic needs, and also to small business owners like Cynthia Jude, whose online shop struggles to stay viable, the stories repeat themselves with unsettling consistency and outcomes. Families ration children’s screen time not out of discipline, but out of financial desperation. The adverse part that has continued is the widening of an already dangerous digital divide, as rural communities withdraw from digital platforms altogether because of exploitation.
Perhaps most telling is how quickly exploitation has been normalized in Nigeria. Many Nigerians now shrug and say, “That’s how it is.” This resignation is the greatest victory for an unfair system and when people stop believing that fairness is possible, for this reason, exploitation becomes invisible, and abuse thrives without resistance.
Consumer advocacy groups like NATCOMS have begun to signal a shift in posture, including the possibility of court action. Labour unions have threatened boycotts. Civil society organisations warn of social and economic repercussions. These responses indicate that public patience is wearing thin. If left unaddressed, subscription apathy, however gradual, could ultimately undermine the very growth the telecom sector seeks to protect.
For a better understanding of what Nigeria faces is not merely a dispute over megabytes and tariffs, for clarity, it is a governance challenge that cuts across corporate ethics, regulatory independence, consumer empowerment and economic justice. A digital economy cannot thrive on distrust. Transparency and easily understandable data billing must become mandatory, not an aspirational goodwill promise. Independent audits should be public, regular, and credible. Complaint resolution mechanisms must be simplified, fast, and binding. Regulators must act not as mediators between equals, but as defenders of the public interest in an asymmetrical power relationship.
Equally important is consumer education, but awareness campaigns alone cannot substitute for structural reform. Digital literacy must go hand in hand with corporate accountability because the better it is understood that teaching users how to conserve data does not absolve operators from the responsibility to bill fairly and transparently.
At its core, the telecom debate reflects a large Nigerian dilemma, if not a broader problem in Nigeria, as corporate power has grown faster than institutional strength. Until regulators are truly independent and totally free from corporate and political influence, transparency is enforced by law, and consumers are recognized and treated not as passive revenue streams but as stakeholders with rights, exploitation will remain systemic rather than accidental or a series of isolated mistakes.
Communication is the bloodstream of modern society. When access to it becomes exploitative, the cost is paid not only in naira but in opportunity, dignity, and trust. Nigeria must decide whether its digital future will be built on fairness that respects consumers or allow it to rest on fatigue, frustration, and exploitation of users. The choice Nigeria makes will make more impact and the answer will shape not just the telecom sector, but the credibility of governance in an increasingly connected nation.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
General News
CBN, NCC Propose Instant Refunds for Failed Airtime, Data

Central Bank of Nigeria (CBN)and the Nigerian Communications Commission (NCC) have proposed that customers must receive refunds within 30 seconds for failed airtime and data purchases to curb persistent billing complaints in the telecommunications sector.

This was indicated in the Exposure Draft of the Joint CBN–NCC Framework for Resolution of Failed Airtime and Data Purchase Transactions, which was published on the website of the CBN on Monday.
The landmark exposure draft, dated 5 February 2026, seeks to “institutionalise clear accountability” and establish a “coordinated approach to consumer redress” across the financial and telecommunications sectors.
The most significant shift in the proposed framework is the introduction of standardised, automated timelines for resolving failed transactions.
Currently, Nigerians often face long delays when airtime purchases fail at the bank, aggregator, or Mobile Network Operator level.
To solve this, the regulators have proposed a 30-second window for automated reversals. Section 6.0 (ii) of the draft exposure, which dwelt on failed transactions, especially as it relates to unfulfilled airtime/data delivery, proposes a time to refund the purchaser of 30 seconds “if the transaction failed at the bank level… Failed transaction delivery from NCC Authorised Licensees… Failed transaction delivery from MNO to the NCC Authorised Licensee.”
The draft emphasised that stakeholders must “automate reversal processes across all stakeholders” to ensure that refunds require no human intervention from the customer.
The draft exposure also stated that “all parties involved in airtime and data transactions shall take the following actions to ease usage and facilitate consumer satisfaction: a. Stakeholders must immediately connect ONLY to relevant authorised licensees of the NCC and CBN. b. MNOs and banks must only connect to NCC Authorised Licensees/MNO digital channel partners for airtime and data vending… Notifications of failure create final settlement obligations between MNO and NCC-authorised licensees… The NCC and CBN will audit stakeholder compliance jointly or individually at quarterly or other intervals as may be determined.”
From a business and oversight perspective, the regulators are proposing a Central Monitoring Dashboard to be hosted jointly by the CBN and NCC, which will track reversals, Service Level Agreement breaches, and customer complaints in real-time.
“There shall be a Central Monitoring Dashboard hosted by CBN/NCC for tracking reversals, SLA breaches, and customer complaints. This will facilitate the establishment of a real-time national ‘Failed Transactions Dashboard’ with a uniform error code with end-to-end visibility across the value chain’, read the draft exposure.
This is designed to eliminate the “unclear ownership of liability” that often occurs when banks and telcos blame each other for failed recharges. To support this, banks and MNOs will be required to maintain and share daily reports of successful and failed cases.
The proposed framework also addresses the common problem of “lost” money when customers recharge ported phone numbers. The draft mandates that MNOs must validate a phone number against the ported number database before processing any recharge. If the system identifies a number as ported out or invalid, it must “proactively stop recharges” and send a failure code back to the bank to ensure the customer is not debited.
For erroneous recharges sent to the wrong person, the framework sets clear protocols: below N20,000, MNOs will request the recipient’s consent before a reversal, and when it is above N20,000, an affidavit of indemnity or notarised letter is required to process the recovery.
The CBN and NCC in the exposure draft signalled they will take a firm stance on compliance. Both agencies will conduct joint quarterly audits of all stakeholders, including banks, payment service providers, and MNOs, to verify compliance with the new rules. The regulators have warned they will “impose penalties for any breach” of the framework’s provisions.
Banks and other financial institutions have until 10 February 2026 to submit their inputs on the draft before it is finalised. Once implemented, the framework is expected to significantly restore “subscriber trust” in Nigeria’s digital financial ecosystem.
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