ANALYSIS: NIN-SIM Linkage Cut Telcos’ Airtime Earnings By N37.17 billion

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Mobile telecommunications services providers in Nigeria may have lost an estimated revenue of N37.17 billion from the mandatory National Identity Number (NIN) – Subscriber Identity Module (SIM) records linkage.

This is because 20.84 million mobile phone lines in the country have become disconnected between November last year and May 2021 and telecoms operators are unable to sell airtime to them in the past six months.

t was gathered that the phone lines were disconnected due to inability of subscribers to retrieve lost SIM cards, improper SIM registration and long period of disuse of SIM cards by subscribers.

The Minister of Communications and Digital Economy, Dr Isa Patanmi, had in December 2021 made it mandatory for all Nigerians and foreigners with resident permits to obtain a National Identity Number (NIN) and submit to their telecom service provider for linking with their phone numbers.

The telcos were also instructed by the Nigerian Communications Commission (NCC) to immediately suspend the sale and activation of new SIM cards to allow another audit of the Subscriber Registration Database.

READ ALSO: 56 million Nigerians Have Been Registered With NIN – NIMC

The sale of SIM cards and retrieval of lost SIMs were put on hold till April this year.

Pantami had in December also threatened to block all SIM cards that were not registered with valid NIN within two weeks. However, the deadline for the exercise has been extended for more them three times with the latest deadline being June 30, 2021.

Industry data obtained by BizWatch Nigeria from the NCC showed that as of November 2020, there were 207.53 million active GSM phone numbers which declined to 186.69 million in May 2021, represented 10 per cent decline in active subscribers.

NIN-SIM Linkage Cut telcos airtime earnings by N37.17 billion
Source: NCC

Before the ongoing NIN-SIM linkage exercise, the telecom operators had been directed to disconnect any line found to have been improperly registered from their networks.

NCC’s guidelines also permit the telecommunications companies to disconnect and reassign SIM cards once they are inactive for a maximum of 180 days.

The N37.17 billion airtime earnings is based on the multiplication of an estimate of the number of inactive subscribers in the industry between November 2020 and May 2021, and a projected Average Revenue Per User for voice and data services provided by analysts in the telecommunication industry.

Sales of airtime remain the core revenue earner for telcos and generate income for operators via voice calls, SMS, data subscriptions and other value-added services.

A breakdown of subscribers’ data from NCC indicated that as of May, MTN had 74.04 million subscribers, Globacom had 49.78 million users, Airtel had 50.03 million subscribers while 9mobile had 12.84 million users.

An industry analyst said the average revenue per user in the first quarter of 2021 for data and voice revenue per subscriber per month is $4.35 (N1,784).

READ ALSO: NIN: World Bank Awaits Presidency’s Assent To Disburse N430 Million Fund

This meant subscribers whose mobile numbers had become inactive could have spent about $90.65 million (N37.17 billion) on airtime purchase during the period, using N410.17 to one dollar exchange rate.

Nigerians purchase airtime through various platforms such as physical recharge cards, the virtual top-up via USSD code, subscribers’ bank accounts domiciled on mobile devices, vending on web-based platforms and on Automated Teller Machines.

What is NIN?

The NIN consists of 11 non- intelligible numbers randomly chosen and assigned to an individual at the completion of enrolment into the National Identity Database (NIDB).

It is a unique identifier that is assigned to an individual, it can never be reassigned, given or used by another person.

All citizens and legal residents in Nigeria, from age zero (birth) and above are eligible to enrol for their NINs.

NIN is a mandatory requirement for the enrolment or registration for internal and external examinations with educational and examination board; provision of consular services; issuance of driver’s license; and registration for the issuance of travelling documents; and registration of voters, among others.

56 million Nigerians Register For NIN

The Director-General of the National Identity Management Commission (NIMC), Aziz Aliyu, has disclosed that the agency has completed the registration of 56 million NINs into database as of June 1.

The NIMC boss also noted that a minimum of two million Nigerians are registered monthly.

“As of today, NIMC has been able to register 56 million Nigerians with their NIN, and that has been possible since Dr Isa Pantami took over as Minister of Communications and Digital Economy in October 2020.

“We register at least two million Nigerians monthly, which is a good effort toward the digital economy agenda,’’ he said.

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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