Telecom
Gaps on Phone Number Recycling Fuel Identity Theft, Data Breaches- ICIR
When Okezie Kelechi lost his SIM card, the one he had used since his secondary school days, he didn’t think much of it.
He was shocked weeks later to find out it had been reassigned to someone else.
“I had no idea that if your SIM card has been inactive for more than three months, they will resell it,” he wrote on social media.
“They recycled my SIM card and sold it. Same number, I have had it since secondary school.”
Kelechi’s story is far from unique.
Across Nigeria, more people are waking up to the realities of what is known as SIM recycling, a process where telecommunication companies reassign inactive phone numbers to new users. While allowed under existing rules set by the Nigerian Communications Commission (NCC), the practice is now raising serious concerns over data privacy, fraud, and national security.
A regulatory gap with real-life consequences
Experts in Nigeria’s telecommunications and security sectors are increasingly warning that the NCC’s failure to establish stronger oversight of SIM recycling is endangering millions.
“Beyond the data breaches, this issue posed a big threat to national security. I have always maintained the need for a central data system in Nigeria,” said Daniel Makolo, a retired senior official of the Nigerian Immigration Service to The ICIR.
“There’s much more to this if we don’t pay attention to an appropriate central data mining system that gives us a history of each person in the country.”
Ayodele Ajayi, an engineering professor at the Federal University of Technology, Akure, explained the security risks from his own experience.
“I used to have one Airtel number, but I travelled out. Before I came back, it was reallocated to another user,” he said.
Because phone numbers are tied to Bank Verification Numbers (BVNs) and National Identity Numbers (NINs), reassigning them can expose people to identity theft and financial loss.
The NCC should find a way to notify users when their numbers are at risk of being deactivated, Ajayi urged.
He also recounted an incident he witnessed at a bank, “a woman was narrating how she used to have a particular number but lost it. Somebody saw the number and started using it.
The woman said that before she could act, the person who got the number had started using it and had connived with a bank office to almost wipe out all her savings.
“Upon arriving at the bank to check her account balance, she found out that she had only N50,000 left from about N5 million she had saved up.”
Ajayi emphasised that while recycling is a practical move for telcos to manage limited number availability, more caution is needed.
“Let people know so they can migrate their data to another line, particularly now that almost every channel we use is linked to the phone number, including our bank verification number (BVN)”, he stated.
Kelechi recalled that his number was reassigned to another user despite still being active on WhatsApp.
“I used to wonder why random Hausa boys were always messaging me and calling me baby.
He added that “when I finally visited MTN office in Nigeria, I was told the line has been sold to someone else. E pain me, I no go lie.”
Another social media user Elizabeth Kandi, @DrETKandi warning others about the hidden risks of SIM inactivity alleges that when reassigned the new user can have access to your USSD banking.
“If your Nigerian number was connected to your Nigerian bank accounts for USSD, if you didn’t use it for long, the network provider can disconnect and sell the number to someone else…but that person would be able to access your money via USSD,” Kandi wrote.
Her post underscores the growing fear that recycled numbers, still linked to sensitive services like mobile banking, can open the door to fraud and financial loss
Why do Telcos recycle SIMs?
At a virtual stakeholder meeting in April 2025, NCC Executive Vice Chairman Aminu Maida acknowledged the concern noting that with the evolving landscape, it has become necessary to address emerging challenges that could undermine consumer rights.
He further noted that the Quality-of-Service Business Rules 2024 stipulate that a prepaid line without a revenue-generating event for six months must be deactivated.
This means if a prepaid SIM card goes unused for six months (i.e., no calls, texts, or data use), it must be deactivated.
If the inactivity continues for another six months, the number may be recycled/reallocated to a new user.
In Section 28 of the NCC’s draft business it is stated that all recycled SIMs must be purged of any NIN attached to allow a new user to link their own NIN. But real-world cases suggest that in practice, many recycled numbers are not properly sanitised before reassignment.
The business case for SIM recycling
For telecom operators, recycling isn’t just a technical choice, it’s economic.
Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), explained that subscribers do not have ownership rights to SIM cards in their possession, as the telecom operators pay procurement and recurring costs for each registered subscriber.
He further explained that SIM cards are “recycled” to prevent number exhaustion while reducing the cost of generating and maintaining them.
“SIM cards are reassigned to reduce the dormant subscribers, as telcos are profit-oriented organisations,” Adebayo said.
In the exercise of its powers under Section 70 of the NCC Act (2003), the commission made provisions for the development of a new numbering plan for Nigeria. Under the provision, telcos are obligated to pay a sum that is the ‘numbering plan fees’ to maintain their allocated numbers.
Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Court of Appeal to suspend the enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
WASPAN warned that the implementation before the determination of its appeal could expose telecom value-added service providers to sanctions and disrupt their operations.
Millions of subscribers across the country rely on borrowed airtime to communicate.
Seun Sofoluwe, an Abeokuta, Ogun State resident, said another interruption would have severe consequences for many Nigerians who depend on airtime and data lending services for their daily communication needs.
“A lot of people depend on the services, and it will be very bad for them, especially those who are so reliant on it that they do debt-to-debt servicing,” he said.
Debt-to-debt servicing refers to the practice of repaying an outstanding airtime loan immediately to qualify for another advance, underscoring the extent to which some subscribers depend on the facility to remain connected.
Sofoluwe’s concerns echo the experience of Lagos-based employee Farouk Rabiu, who recounted the hardship caused by the six-month suspension of airtime lending services before they were restored.
“I was devastated because, after exhausting my data, I was hoping to borrow credit to access my bank account. Instead, it was a major disappointment,” Rabiu had said after the services resumed.
Adding another dimension to the debate, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the earlier disruption showed that airtime credit had evolved far beyond a conventional telecommunications offering.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.
WASPAN, which represents licensed value-added service providers, has asked the Court of Appeal to restrain the FCCPC from enforcing the DEON Regulations pending the hearing of its appeal against the July 20 judgment of the Federal High Court in Lagos.
The association argued that immediate enforcement would expose operators to sanctions, create regulatory uncertainty and disrupt telecom-enabled services, including airtime credit and data advances, used daily by millions of Nigerians.
The FCCPC, however, has defended the resumption of enforcement, insisting the regulations are intended to sanitise the digital lending industry, curb predatory debt recovery practices, protect consumer data and eliminate illegal digital lenders.
The Court of Appeal is expected to determine whether enforcement of the regulations should remain suspended while it considers WASPAN’s appeal, a decision that could shape the future of telecom-based digital lending services and determine whether subscribers continue to enjoy uninterrupted access to airtime and data credit.
Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have entered into a partnership to deploy renewable energy solutions for telecommunications infrastructure in rural and underserved communities, a move expected to reduce operators’ energy costs and improve network availability.
Abraham Oshadami, executive commissioner for Technical Services at the NCC, disclosed this during the signing of a memorandum of understanding (MoU) in Abuja.
According to Oshadami, the NCC-REA Stakeholder Forum and MoU signing ceremony will enable telecom base stations located near mini-grids to access cleaner and more affordable electricity, reducing their reliance on diesel-powered generators.
He said the agreement came at a time when telecom operators are facing rising operational costs due to increased spending on diesel to power network sites amid unreliable electricity supply from the national grid.
The partnership reflects the growing relationship between the power and telecommunications sectors, as both rely on each other to deliver essential services.
Oshadami explained that while telecom infrastructure requires a steady power supply to remain operational, digital connectivity also supports electricity services such as smart metering, electronic payments and remote customer management.
According to him, the collaboration is aimed at improving access to reliable electricity and telecommunications services, particularly in remote communities where inadequate power supply has slowed digital inclusion.
He said both agencies had identified telecom base stations located within one to two kilometres of existing mini-grids, allowing the implementation of the initiative to begin immediately.
“Where mini-grids exist, we are able to identify nearby base stations and connect them to those power sources,” Oshadami said.
He added that future mini-grid projects would be planned with telecommunications infrastructure in mind, ensuring that electricity investments also support the expansion of digital services.
Telecom
Ex-Pan African Towers CEO Alleges DPI, Verod Using Court Suit to Pressure Him in $30m Buyout Dispute
A fresh twist has emerged in the legal disputes surrounding the acquisition of Pan African Towers (PAT), with the company’s former Chief Executive Officer, Azeez Amida, alleging that a lawsuit filed against him is retaliatory and intended to pressure him over an ongoing $30 million management buyout dispute.
Pan African Towers
The allegation is contained in Amida’s Statement of Defence and Witness Statement filed before the Federal High Court in Lagos in response to claims instituted by Pan African Towers.
According to the court filings, Amida argued that the latest suit should be viewed within the context of several pending disputes involving the company’s shareholders, including Development Partners International (DPI), Verod Capital Growth Fund III LP and African Development Partners International LLP.
The defence stated that Amida had already commenced separate legal proceedings against the investors over the management buyout transaction, seeking damages exceeding $30 million, while also pursuing claims against Pan African Towers arising from a Mutual Separation Agreement executed after his departure from the company.
He alleged that instead of filing substantive responses to those actions, Pan African Towers initiated fresh proceedings at the Federal High Court over expenditure approvals and procurement decisions made during his tenure as chief executive.
Amida maintained that the action was retaliatory and intended to exert pressure on him in relation to the earlier disputes.
The defence further explained that he had deliberately distanced himself from final expenditure approvals during his time as CEO because of disagreements over procurement practices and governance issues involving the board and shareholders.
According to the filings, following the appointment of a new Chief Financial Officer (CFO), financial approval responsibilities were structured to ensure the CFO retained final approval authority, while the CEO’s role was limited to endorsing requests that had already undergone departmental reviews.
The defence argued that many of the transactions now being challenged were processed through that governance framework, with approvals passing through the Finance and Human Resources departments before payment.
It added that the CFO, who remains with the company and has since been promoted, exercised the final approval authority over the disputed expenditures.
Amida also contended that the transactions cited in the lawsuit were not unilateral decisions but formed part of the company’s established governance and approval procedures involving multiple departments, executive management and, where necessary, the board.
According to the defence, documentary evidence, including internal emails, approval workflows and payment records, would be presented during the trial to support those claims.
The filings further stated that hospitality expenses, investor engagement costs and related business expenditures challenged in the suit were incurred in the ordinary course of business, known to directors and shareholders, reimbursed through established procedures and reflected in the company’s audited financial statements.
Amida also argued that the allegations only surfaced after his exit from the company despite extensive internal reviews conducted before both parties executed a Mutual Separation Agreement in November 2024.
He maintained that the agreement required any allegations of misappropriation unrelated to released assets to be investigated, supported by credible evidence and communicated to him within six months, with an opportunity to respond before legal proceedings could commence.
In a separate application, Amida challenged the jurisdiction of the Federal High Court, arguing that the dispute arose from his employment relationship and the Mutual Separation Agreement, matters he said fall within the exclusive jurisdiction of the National Industrial Court.
He also argued that a related case remains pending before the National Industrial Court and that the Federal High Court proceedings amount to an abuse of court process.
The defence indicated that it would rely on a range of documentary evidence during the trial, including audited financial statements, board communications, internal approval emails, banking records, employment documents, shareholder communications and the Mutual Separation Agreement.
The Federal High Court is yet to rule on the substantive claims or the preliminary jurisdictional objections.
While Pan African Towers’ allegations remain before the court, Amida has denied any wrongdoing and maintained that the action forms part of a broader pattern of litigation connected to the acquisition of the company.
The court is expected to determine the merits of the claims after hearing both parties.
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