Gabriel Eze, Associate

Introduction

Determined to achieve full compliance with the Federal Government’s 2020 policy to link all Subscriber Identification Modules (SIMs) to National Identity Numbers (NINs), the Nigerian Communications Commission (NCC) has, on Wednesday 28 August 2024, released a press statement announcing 14 September 2024 as the final deadline for the linkage of NINs with SIM cards.

Happy with the rate of compliance, the NCC notes that over 153 million SIMs have been successfully linked to a NIN, reflecting an impressive compliance rate of 96 per cent, a substantial increase from 69.7 per cent in January 2024.

A Few Facts about the NIN-SIM Linkage Compliance

1. The NIN-SIM linkage compliance is a product of policy: The NIN-SIM linkage compliance is the product of the National Digital Economy Policy & Strategy (NDEPS), anchored on 8 Pillars of the Digital Nigeria Roadmap for Nigeria. Specifically, Pillar #6 (the soft infrastructure pillar) focuses on strengthening public confidence in the use of digital technologies and participation in the digital economy. A key policy objective of Pillar #6 is support for the accelerated implementation of a digital identity program.¹
2. The NIN-SIM linkage compliance applies to other government Ministries, Departments and Agencies (MDAs): The NIN-SIM linkage compliance runs across several other MDAs in Nigeria. For instance, the Corporate Affairs Commission (CAC), the regulatory agency with the statutory powers to oversee the registration and general administration of companies and nonprofit organizations in Nigeria, has severally announced the mandatory use of the NIN on its platform. This includes registration, post-incorporation matters, and documentation of companies, nonprofit organizations, partnerships, and sole proprietorships.
3. There have been several deadlines for the NIN-SIM linkage exercise: According to the NCC, since December 2023, it has since reviewed the deadline a few times. Despite the extensions, many phone lines are yet to be linked with verified NINs. In what some have described as a ‘NIN-SIM verification chaos’,² many telecom subscribers/consumers woke up one morning in July 2024 unable to access their phone lines for failing to verify their NINs with their SIMs. Thankfully, on 29 July 2024, the NCC directed all operators to reactivate all disconnected lines. There may not be another extension for NIN-SIM linkage. Telecom subscribers/consumers who have not completed the exercise are encouraged to do so within the available timeline. 

Reasons Businesses Should Take the NIN-SIM Linkage Exercise Seriously

The following are 5 reasons businesses should take the NIN-SIM linkage exercise seriously. They include as follows:

1. Avoidance of reputational and pecuniary risk: complying with the NIN-SIM linkage will help your businesses save customers, money, and reputation. Compliance will help mitigate identity fraud and other online crimes on your platform and against your business.
2. Corporate responsibility: by complying with the NIN-SIM linkage exercise, businesses play their role in assisting the government to improve and enhance national security, as well as accelerate economic planning and development.
3. Know Your Customers (KYC) compliance: to establish customer identity required for KYC compliance. This way, businesses can identify and mitigate risks such as money laundering, terrorism financing, proliferation financing amongst others.
4. Transaction Facilitation: to validate SIM-card registration records and allow it to be used as a digital identity. With identity being digitized and tied to biometrics, the NIN, Biometric Verification Number (BVN), Voter IDs, and SIM card registration details can provide channels for identifying customers in order to facilitate credible transactions.
5. The NIN as Nigeria’s Major ID Infrastructure: Considering the Federal Government’s big plans for the NIN, NINs will increasingly become the major valid identity infrastructure in the country. Already, the NIN is gradually becoming the mandatory ‘passport’ or gateway to public services as well as the ability of professionals in the private sector to offer services.

Conclusion

The NCC seeks the continued cooperation of all Nigerians to achieve a 100-percent compliance. As mentioned in its press statement, the NCC hopes that by verifying all mobile users, there would be strengthened confidence in digital transactions, reduction in fraud and cybercrime, and a greater participation in ecommerce, digital banking, and mobile money services. This will engender financial inclusion and drive economic growth in Nigeria. 

It makes a lot of business sense for the private sector to also drive the ongoing NIN-SIM linkage policy of the government. This is because the private sector—just as its public-sector counterparts—will need the users of their services to be fully compliant in order to keep those transactions safer and more secure. NIN-SIM linkage is everyone’s business. Have you linked yours?