Telecom
Telcos Lose N119Bn Monthly as Subscribers Abandon SIM Cards
MTN Nigeria, Globacom, Airtel, 9Mobile and ntel, the country’s main mobile network operators (MNOs), are losing monthly a handsome sum of potential revenues running into billions of naira to the rising profile of abandoned subscriber’s identity module (SIM) cards in the country.
According to report by business a.m., online news medium, as the total number of inactive SIM cards peaked at 85.49 million at the end of October this year, the total monthly amount lost by operators of global service for mobile communication (GSM) amounted to N118.983 billion.
Business a.m. said it arrived at the figure using the current average revenue per user (ARPU) in the industry which stands at $3.85 monthly at N362.464 to one dollar as benchmark exchange rate.
Experts in the industry have explained that by the Nigerian telecoms industry standard, a SIM card is labelled inactive after the subscriber failed to use it to access any telecommunications services for a period of 90 days at a stretch.
Data obtained from the industry regulator, the Nigerian Communications Commission (NCC) revealed that since inception of GSM services in the country, a total of 265.61 million telephone lines have been sold and connected by the MNOs including MTN, Globacom, Airtel, 9Mobile, nTel.
Analysis of latest industry figure from the NCC shows that within the first 10 months of 2019, a total of 6.33 million lines were made redundant by their holders despite 7.63 million new lines that were activated.
The trend of inactive lines continued in the country despite the rise in active mobile phone lines and tractions recorded in teledensity which at the end of October stood at 180.12 million and 94.50 per cent respectively.
In January this year, out of 249.22 connected lines, 75.59 million or 30.33 per cent were inactive. In February, 75.17 million, an equivalent of 30.26 per cent of total 248.45 million connected lines went completely offline, and as at March, out of a total 250.26 million lines that have so far been issued by operators, 76.83 million or 30.7 per cent were inactive.
The percentage went up in April (31.49 per cent), May (31.98 per cent) and June (32.78 per cent) when 79.67 million, 81.51 million and 84.74 million of total 253.05 million, 254.92 million and 258.49 million SIM connections were redundant respectively.
In July and August, out of 259.14 million and 263.62 million connected lines, 84.74 million or 32.55 per cent and 87 million or 33 per cent in that order were inactive.
As at the end of September, 85.5 million or 32.34 per cent of 264.40 million total connected lines had been abandoned for at least 90 days, while in October, 85.49 million subscriptions or 32.19 per cent out of total 265.61 million were inactive, leaving 180.12 million as the current active subscriptions in the system.
Telecoms consumers in Nigeria have been found to live multi-simming lifestyle where one person is in possession of more than one SIM card registered to his identity.
This trend is further promoted by the design and configuration of mobile devices type-approved by the NCC as many of the devices are made to accommodate more than a SIM card conveniently.
The operators have also been accused of contributing to the rising trend of inactive telephone lines in the system as their sales agents are often seen aggressively giving out SIM cards to existing and potential customers for free, or selling and registering the lines at ridiculously low prices.
Some subscribers told business a.m. during informal chats with them that they sometimes activated a SIM card just to enjoy a promo service being offered at that time by the operators, after which they ditched the telephone lines.
While telephone numbers assigned by the NCC to operators in ranges is seen as a scarce national resource, some industry experts hold that the situation is still normal since total active lines outnumber abandoned ones.
According to Olusola Teniola, the president of Association of Telecommunications Companies of Nigeria (ATCON), loyalty of prepaid customers to their networks is minimal, hence, it is easy for them to drop a line and go for another one.
He said: “With increasing migration of prepaid subscribers, from a usage basis, this means that there is far less loyalty to remain with an operator and easy for expats and mobile road warriors to dispense with SIM cards and return to obtain another SIM card when they return to Nigeria.
“So it is still okay that number of active SIM cards exceeds the number of inactive SIM cards. If it happens otherwise, it signifies saturation or heavy churn due to alternative offerings over Wi-Fi or other non-based SIM devices,” Teniola said.
He, however, observed that the telcos needed to win more post-paid subscribers to reduce the number of inactive lines.
“With more post-paid accounts the number of inactive SIM cards should decrease, as the SIM is usually provisioned subject to a tenured contract being in place,” he said.
Meanwhile, in a recently released numbering plan regulation, NCC said it would henceforth withdraw inactive lines after 12 months.
“Subscriber numbers that have not generated revenue by originating calls will automatically be recovered after 12 consecutive months,” part of the new numbering plan read.
In the new plan, NCC said it would conduct regular audit in order to ascertain the level of utilisation of numbers assigned to operators.
“The numbers issued will be categorised as follows: Assigned i.e. total number assigned by the regulator including operator codes; Quantity of numbers already assigned and sold to subscribers (SIM cards); Quantity of numbers in trade channels i.e. numbers with assigned SIM cards but not yet sold; Revenue generating subscribers during the preceding 90 days prior to the reporting period; and Quantity of numbers in quarantine,” the commission said.
The need for Nigeria to think outside the box in its need to drive towards global relevance with innovations and scientific developments will be on the front burner at the NITRA Innovative & Scientific Conference scheduled to hold on Thursday July 23, 2026 in Ikeja, Lagos.
NITRA
The Nigerian Communications Commission (NCC) will lead other delegates to discuss and take far-reaching decisions at the event, which has its theme as “Bridging Nigeria’s Digital Divide With Scientific Innovation”.
Other companies that have indicated interest in partnering with NITRA include mobile communications company, Tecno; Africa’s premier end-to-end AI solutions company, Hyperspace; and telecommunications data infrastructure company, Digital Realty.
Speaking on the proposed event, the Chairman, Nigeria Information Technology Reporters Association (NITRA), Chike Onwuegbuchi noted that the event will seek to create a platform for government and private organisations to deliberate on policies around scientific innovations in Nigeria, challenges, place of indigenous and foreign collaboration, roles of each stakeholder, and grassroots development in that regard, among others.
According to him: “The Federal government, with series of programmes and partnerships, has established the urgent need to create an ecosystem that thrives on scientific innovation, breeding institutions and individuals with a target of placing the country at the fore-front of Next-Gen development.
It is a known fact that digital and scientific innovations are crucial, not only to the survivability of a nation, but also to the sustainability of its growth and development, with significant effect on economic strength, global image, defense and security, government capabilities to function, and public health and safety, communication and digital footprint, among others.
The federal government is actively driving scientific innovation to foster economic diversification and build a $1 trillion economy by 2030. Efforts are heavily focused on commercializing research, establishing massive research funds, and funding strategic infrastructure, particularly in technology, biotechnology, and healthcare. Core government initiatives and policies include the newly instituted National Research and Innovation Development Fund (NRIDF), which aims to mobilize about $500 million annually to support research and the commercialization of scientific outputs; and the Nigeria Genomic City, a multi-ministerial initiative aimed at transforming Nigeria into a leading hub for genomics, precision medicine, and biotechnology. It is designed to protect indigenous data, stimulate artificial intelligence in health, and develop a highly skilled scientific workforce.
According to the General Secretary of NITRA, Mr. Chidiebere Nwankwo, the forum will also be a vehicle to propagating the views of decision makers to the public, thereby furthering the cause of public awareness and information dissemination on the topic.
The focus, he said will be on how Nigeria can sustain digital innovative growth and scientific development in Nigeria
The board of global payments company, PayPal, says a 53 billion dollars takeover offer from financial technology firm, Stripe, and private equity company, Advent International, does not adequately reflect the company’s long-term value.
PayPal
According to reports, the proposed acquisition, valued at 60.50 dollars per share, remains under consideration, with the board yet to formally respond to the offer.
The directors are said to be evaluating not only the financial value of the proposal but also the structure of the financing, the timeline for completing the transaction and the likelihood of obtaining regulatory approvals.
They are also considering the possibility of competing bids emerging.
Although the offer represents a premium of about 28 per cent above PayPal’s recent share price, the board believes the company could deliver greater value to shareholders if its ongoing turnaround strategy succeeds.
Following reports of the bid, PayPal shares gained about two per cent to close at 56.73 dollars.
Sources familiar with the discussions said Stripe and Advent have secured approximately 50 billion dollars in debt financing from JPMorgan and Morgan Stanley, while both firms would jointly contribute 17 billion dollars in equity.
Under the proposal, the two companies would jointly own PayPal instead of dividing its operations.
PayPal, Stripe, Advent International, JPMorgan and Morgan Stanley have all declined to comment on the proposed transaction.
The discussions come as PayPal seeks to strengthen its business after years of increasing competition from rivals including Apple Pay, Google Pay and emerging financial technology firms.
The company, which was valued at about 360 billion dollars in 2021, now has a market capitalisation of approximately 36 billion dollars.
Since assuming office as Chief Executive Officer in March 2026, Enrique Lores has embarked on a restructuring programme aimed at improving operational efficiency and restoring growth.
The restructuring includes the creation of three business divisions comprising Checkout, Venmo and Consumer Financial Services, and Payments and Crypto.
The company is also targeting 1.5 billion dollars in cost savings through the deployment of artificial intelligence technologies.
PayPal’s latest financial results indicated signs of recovery, with first-quarter revenue rising seven per cent year-on-year to 8.35 billion dollars, while total payment volume increased by eight per cent to 464 billion dollars.
If approved, the transaction would combine two of the world’s largest digital payments companies.
The combined business would process an estimated 3.7 trillion dollars in annual payment volume, significantly strengthening its position in the global online payments market.
However, analysts expect the proposed acquisition to face intense regulatory scrutiny because of the companies’ combined market share in merchant payment services.
To address possible antitrust concerns, the bidders have reportedly considered options, including separating PayPal’s Braintree business or other assets if required by regulators.
Sources said Stripe and Advent remain interested in pursuing the acquisition despite the board’s reservations, although negotiations are expected to continue.
Market observers are also awaiting PayPal’s earnings report scheduled for July 28 for further indications of the company’s financial recovery and future growth prospects.
Concerns over network reliability and its impact on Nigeria’s growing creator economy took centre stage at MTN Nigeria’s Data on Trial event, where content creator and streamer, Jarvis, challenged telecommunications operators to improve connectivity for digital creators.
Speaking during the event, Jarvis asked whether there were locations in Nigeria where uninterrupted internet connectivity could support real-life (IRL) streaming without network disruptions.
“Are there places where there is no breakage when streaming IRL?” she asked.
Her question highlighted the challenges faced by content creators who depend on stable internet services for live streaming, content uploads and real-time engagement with audiences.
Responding, MTN Nigeria’s Chief Technical Officer, Mr Yahaya Ibrahim, said network performance depends on several factors, including location, network coverage, device capability and the number of users connected to a particular base station.
He noted that operators continue to invest in expanding network capacity to meet the growing demand for data services.
Earlier, MTN’s General Manager, Network Performance and Quality Assurance, Mr Michael Ndukwe, explained the evolution of mobile network technology in Nigeria, from first-generation (1G) services to the current fifth-generation (5G) technology.
According to him, each phase of technological advancement has significantly increased network capacity and enabled new digital services.
Ndukwe cited Nigerian Communications Commission (NCC) data showing that Nigerians consumed about 13.2 million terabytes of data in 2025.
He added that data usage reached approximately 4.06 million terabytes in the first quarter of 2026, reflecting the country’s increasing reliance on digital platforms and online services.
According to him, the growth is being driven by wider adoption of 4G and 5G networks, increased smartphone penetration, the proliferation of smart devices and expanding use of social media platforms.
Participants at the event noted that as more Nigerians build businesses and careers around digital content, access to reliable and high-speed internet has become critical to sustaining the country’s digital economy and creator ecosystem.
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