Onome Amuge
Efforts to deepen digital financial inclusion in Africa’s most populous country are entering a new phase as regulators move to guarantee near-instant refunds for failed airtime and data purchases, a high-frequency transaction that increasingly functions as a gateway to broader financial services.
The draft framework, jointly developed by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), seeks to standardise how transaction failures are detected, reported and resolved across the digital payments value chain. Regulators argue that seamless interoperability between telecom operators and financial institutions has become essential as airtime and data purchases increasingly serve as an entry point into wider digital financial services.
Mobile airtime in Nigeria functions not only as a communications commodity but also as a quasi-financial instrument. Millions of consumers routinely purchase airtime or data through bank apps, fintech wallets and USSD channels, often in small but frequent transactions. This convergence has exposed regulatory gaps when transactions fail; typically when a bank account is debited but airtime or data is not delivered promptly.
Under the proposed rules, such failures would trigger automatic reversals within half a minute. Mobile network operators would be required to restore debited inventory to licensed intermediaries’ stock positions immediately, while banks and payment service providers would coordinate refunds to customers in real time where failures originate in the financial leg of the transaction.
Regulators say the new regime responds to rising consumer complaints about delayed refunds, which have become a persistent friction point in Nigeria’s digital payments ecosystem. Although individual transaction values are often little, cumulative volumes are substantial. Industry executives estimate that airtime and data purchases represent one of the highest-frequency electronic payment categories in the country, making operational reliability critical for maintaining confidence in digital channels.
The initiative also highlights a growing recognition among policymakers that telecom infrastructure and financial services are no longer distinct silos. Nigeria’s digital economy has increasingly blurred those boundaries, with mobile operators offering payment services through licensed subsidiaries and banks relying on telecom channels for last-mile customer access.
By requiring joint accountability across banks, mobile network operators and NCC-authorised licensees, the framework effectively formalises this convergence. Failed transactions, whether originating from bank processing errors, delivery breakdowns by telecom intermediaries or handoff failures between operators and licensees, must now be resolved through coordinated protocols rather than isolated institutional responses.
Financial analysts view the move as consistent with Nigeria’s broader financial inclusion agenda. Despite rapid growth in mobile payments, trust deficits remain a barrier to adoption, particularly among lower-income users who rely heavily on prepaid mobile services. Instant refunds could reduce perceived risk and encourage greater use of electronic payment channels for everyday transactions.
There are also operational implications for banks and fintech firms. Real-time refund obligations will require more robust reconciliation systems, improved transaction monitoring and closer technical integration with telecom partners. Some payment service providers have already begun upgrading switching infrastructure to support faster dispute resolution, anticipating stricter regulatory expectations.
The draft circular, signed by Aisha Isa-Olatinwo, the CBN’s director of consumer protection and financial inclusion, has been released for public consultation until February 20, 2026. Stakeholders are being invited to comment on operational feasibility, compliance timelines and potential cost implications.
Some industry executives privately caution that the 30-second benchmark may prove challenging during network outages or peak transaction periods. They argue that achieving near-instant reversals consistently will require significant backend modernisation, particularly among smaller payment intermediaries.
Nevertheless, regulators appear determined to push ahead. Officials consider the initiative as part of an effort to align Nigeria’s digital transaction standards with international best practice, particularly as the country seeks to position itself as a regional fintech hub.
The framework also reflects lessons from recent disruptions in Nigeria’s payments landscape, where service reliability issues have periodically dented public confidence. Policymakers increasingly view operational resilience,including rapid error correction, as central to sustaining growth in digital financial services.
If implemented effectively, the new rules could have spillover effects beyond airtime purchases. Analysts expect similar real-time dispute resolution expectations to emerge in adjacent areas such as mobile money transfers, bill payments and merchant transactions, reinforcing the trend toward instant settlement across Nigeria’s financial ecosystem.
