SIM reg: Fresh NCC sanction looms

September 6, 2016

Last year, the Nigerian Communications Commission (NCC) came down hard on all the telcos for failing to deactivate improperly registered subscriber identity module (SIM) cards on their networks. MTN was worst hit as it was slammed with N1.04trillion fine for keeping over five million such SIMs on its network. While the telco is still writhing in pains over the fine, LUCAS AJANAKU writes that the operators appear not to have taken any lesson as they have returned to their old ways.

Lafenwa is a sleepy residential community in Ado Odo Ota Local Government Area of Ogun State. A resident of the community, Augustine Ojogbede, father of three, had bought a mobile phone for his eldest son, 12-year-old Daniel, who was preparing to go to Federal Government Science and Technical College, Ushi Ekiti, Ekiti State. At least, the mobile phone will keep him and the other members of the family connected, Ojogbede had reasoned.

So, when one of the mobile operators “stormed” his community with a bus loaded with teenagers, male and female but mostly females, with packs of SIM cards and mouth-watering promises – such as free air time one hour after activation, free 2gigabytes of data, he decided to buy two SIM cards from one of the young women who identified herself simply as Gloria.

He sent for Daniel and his younger sister, Tolani, to come and do the biometric capture as part of the SIM card registration requirements of the NCC.

The obviously untrained agent used the data capture machine, about 10 inches in size, to capture the face of Daniel, who was backing the crowd that had gathered to watch the dancers that came with the telco’s SIM registration team. After the other information – such as state of origin, date of birth and others – had been taken down, then came the time to capture the finger print. Daniel’s right hand thumb couldn’t be captured by the machine. Gloria tried several times but no luck. Then she suggested that Mr. Ojogbede offer his thumb in place of Daniel’s. He did and paid N400 – N200 for the two SIM cards and N200 for its registration.

This is just one example of what is going on with SIM card registration across the country. Determined to grab subscribers, the telcos and their agents have decided to throw caution to the winds, ignoring the laid down procedures for SIM card registration and unwittingly compromising the security situation in the country.They also sell pre-registered SIMs at a premium price to willing buyers.

All the telcos except Etisalat Nigeria failed to respond to media inquiries concerning the development and the level of training, supervision and monitoring given to the agents commissioned to carry out SIM card registration on their behalf.

Chineze Amanfo of the Public Relations Regulatory & Corporate Affairs Division of Etisalat explained: “Etisalat carries out SIM Registrations at Experience Centres and authorised dealer partner outlets, and we are committed to strict adherence to NCC’s guidelines on subscriber registration. Our agents across all channels are duly trained and our supervisors in charge of SIM registration regularly carry out checks to ensure that all agents follow the laid down guidelines.”

NCC’s SIM Registration Regulations set forth very clear requirements for subscriber registration:  Biometric Information-four fingerprints; clear facial image of the subscriber collected in accordance with the agreed Registration Specifications.

Personal Information – full name;   mother’s maiden name; gender; date of birth;

Proof of Identity: any of the following must be sighted: National Identity Card, International Passport; Driver’s Licence; Letter of authentication by traditional ruler/community leader affixed with passport photograph (in rural areas).

Data quality: must be in accordance with Registration specifications in digital Image Standards, Data Dictionary.

Starting in 2007, the NCC commenced the SIM registration and finalised it in 2011 with enactment of the SIM Registration Regulations.

Key objectives of the exercise are to create a central database of telecoms services users in Nigeria, regardless of medium.Other objectives include facilitating know your customer (KYC) for adjacent sectors – such as the Federal Road Safety Commission (FRSC), Central Bank of Nigeria (CBN), National Identity Management Commission (NIMC), Independent National Electoral Commission (INEC) and others.

NCC’s actions were hinged on assisting law enforcement and security agencies to fight the growing level of insurgency (in the Northeast) and criminality (in the South), as some subscribers abused anonymity to embarrass, defraud or carry out illegitimate activities.  Unregistered SIMs have been implicated in acts of kidnapping, financial crimes (419) while registration/location information have been used successfully to track down criminals – such as the Osokogu case. SIMs can also be used to detonate improvises explosive devices (IEDs).

Before the sanction imposed on the telcos last year, NCC said from the about 38.78 million SIMs transmitted to it by the telcos were found wanting and were shipped back for correction but the telcos ignored all entreaties to do the right thing. At the peak of the Boko Haram insurgency, they were given August 11 timeline to deactivate all the SIMs. Director, Public Affairs at the NCC, Tony Ojobo, said a situation where a single individual had over 200 SIM cards unregistered was unacceptable.

NCC’s Head, Compliance and Monitoring Unit, Efosa Idehen, said some 18.6 million SIMs’ data were sent back to MTN; 7. 49 million sent to Airtel; 2.23 million to Globacom and 10.46 million to Etisalat.

Some of the SIMs ordered deactivated by the regulator were either unregistered, pre-registered or registered but had one defect or the other, including poor finger prints, poor facial information and other biometric hiccups.

The matter led to a tussle between NCC and MTN Nigeria, on which a whopping N1.04 trillion fine was imposed.

An agreement was later reached after eight months that MTN pay a reduced fine of N330 billion within three years in a staggered form, and be listed on the Nigeria Stock Exchange (NSE) as soon as it is commercially and legally possible.

NCC said the N330 billion would include the initial payment of N50 billion earlier made by MTN to the government.

The balance of N280 billion would be made in six tranches within a period of three years. MTN will pay N30 billion into the Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN), 30 days from the date of the agreement dated June 10, 2016.

Other dates of payments include: March 31, 2017-(N30 billion); March 31, 2018-(N55 billion); December 31, 2018-(N55 billion); March 31, 2019-(N55 billion) while the balance of N55billion will be paid in May 31, 2019.

It was also agreed that MTN shall tender an apology in line with the apology previously tendered in correspondences relating to the matter to the government of Nigeria and Nigerians within the one month of the execution of the agreement.

The agreement,which was signed by both parties, also mandated MTN, to subscribe to the voluntary observance of the Code of Corporate Governance for the telecoms industry and ensure compulsory compliance when the said Code is made mandatory for the telecommunications industry.

Both parties agreed that these terms of settlement cannot be altered, varied, annulled or modified, except by writing duly executed by both parties; and the terms of settlement constitute all the terms and conditions of the settlement and supersede and replace any previous offers, representations and terms.

The huge fine of N1.04 trillion caused panic within the management of MTN, which led to the resignation of three top executives. The first was the former Chief Executive Officer of MTN Group, Mr. Sifiso Dabengwa, who was forced to resign. He was immediately replaced by an Acting Executive Chairman, Phuthuma Nhleko.

Few weeks after his resignation, the former Chief Executive Officer of MTN Nigeria, Mr. Michael Ikpoki, and the former Head, Regulatory and Corporate Affairs of MTN Nigeria, Mr. Akinwale Goodluck also resigned.

Meanwhile, Ojobo has urged the carriers to remember the N200,000 penalty for selling an unregistered SIM card, warning that the commission had noticed the sale and use of pre-registered SIM cards.

He said: “Operators through their dealers/agents are still selling pre-registered SIM cards in several parts of the country. We wish to reiterate and draw attention to the following provisions:

“Sections 19 and 20 of the Nigerian Communications Commission (Registration of Telephone Subscribers) Regulations, 2011 state that:

“Any licensee who fails to capture, register, deregister or transmit the details of any individual or corporate subscribers to the Central Database as specified in these regulations or as may be stipulated from time to time by the Commission is liable to a penalty of N200,000 for each subscription medium.

“A licensee who activates any subscription medium without capturing, registering and transmitting the personal information to the Central Database commits an offence and shall on conviction be liable to a fine of N200, 000 for each unregistered activated Subscription Medium.

“Any licensee who activates or fails to deactivate a subscription medium in violation of any provision of these Regulations is liable to pay a penalty of N200,000 for each unregistered but activated subscription medium.

“Where the Commission is satisfied that a body corporate is culpable, the Director, Chief Executive Officer, Manager or Secretary shall also be liable to pay a fine of N200, 000 unless, having regard to the nature of his functions in that capacity and to all the surrounding circumstances, he proves that- the offence was committed without his knowledge, consent or connivance; and he took all reasonable precautions and exercised due diligence to prevent the Commission of the breach.”

NCC warned operators and their dealers to desist from the practice of pre-registering SIM cards and selling same in the open market in violation of the above stated provisions.

“The general public is also notified to stop purchasing pre-registered SIM cards and insist on being registered personally for any new SIM card purchased.

“All violators will face stiff sanctions as the NCC will enlist the assistance of law enforcement agencies to address and curb this menace.”

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