House Urges NCC To Delay SIM Recycling Over Fraud Concerns

By Johnson Emmanuel

The House of Representatives, led by Billy Osawaru, Member representing Orhionmwon/Uhunmwode Federal Constituency, adopted in Abuja a motion urging the Nigerian Communications Commission (NCC) to extend SIM card reassignment timelines from the current one year to 18 months, with additional requirements for public disclosure and police reporting. The proposal aims to align telecom practices with the Data Protection Act, 2023 and mitigate fraud risks. Osawaru argued the extension would improve traceability and reduce identity-linked crimes. The House also mandated its Committees on Communications and Commerce to engage the NCC, Nigeria Data Protection Commission (NDPC), and other stakeholders for policy review within four weeks. Akin Adegoke, Chief Digital Officer of Lotus Bank, reinforced systemic coordination, stating, “The solution is in coordination, not more customer warnings… real-time information exchange [should be] mandatory rather than optional.” The mechanism targets regulatory adjustment of dormancy thresholds, combined with cross-sector data synchronisation.

DECISION HIGHLIGHT
Legislative push to extend SIM recycling timeline and introduce disclosure protocols to prioritise subscriber protection over telecom operational efficiency.

DECISION MEMO
The proposal reflects growing regulatory concern that telecom identity management frameworks are misaligned with financial system dependencies. Current SIM recycling rules, designed for number efficiency, now intersect with banking authentication systems, creating systemic vulnerabilities. By extending the dormancy period and introducing disclosure requirements, lawmakers are attempting to rebalance incentives between operators and consumer protection.

However, the intervention remains procedural rather than systemic. Adegoke’s emphasis on real-time integration between banks and telecom operators exposes the core gap, the absence of interoperable identity verification infrastructure. Without this, longer dormancy periods may only delay, rather than eliminate, fraud risks tied to reassigned numbers.

Telecom operators’ defence of recycling policies on sustainability grounds highlights a structural constraint, finite numbering resources and revenue considerations. The House’s position implicitly subordinates these concerns to data protection priorities, signalling a regulatory tilt towards consumer risk mitigation. Yet enforcement capacity and inter-agency coordination will determine effectiveness, particularly given Nigeria’s fragmented digital identity ecosystem.

DATA BOX
Current SIM deactivation: 180 days inactivity
Current reassignment threshold: 12 months dormancy
Proposed reassignment threshold: 18 months
Policy reference: Telecom Identity Risk Management Policy
Legal framework: Data Protection Act, 2023
Proposed additions: Public disclosure in national newspapers; periodic police reporting
Institutional review timeline: 4 weeks

WHO WINS / WHO LOSES
Winners: Mobile subscribers with reduced exposure to identity theft; financial institutions seeking lower fraud risk; regulators asserting stronger data protection oversight.
Losers: Telecom operators facing extended number idle periods and potential revenue impact; new subscribers experiencing reduced number availability.

POLICY SIGNALS
Indicates a shift towards tighter data governance and consumer protection within telecom regulation; signals convergence of telecom and financial regulatory frameworks; prioritises identity security over operational efficiency.

INVESTOR SIGNAL
Raises compliance costs for telecom operators and may affect utilisation efficiency of numbering assets. Conversely, strengthens trust in digital financial systems, potentially supporting fintech adoption and transaction volumes.

RISK RADAR
Regulatory fragmentation between telecom and financial sectors; weak enforcement of disclosure requirements; absence of real-time interconnectivity between banks and telecoms; operational strain on numbering resources; residual fraud risk despite extended timelines.