Economy
SIM-NIN linkage: Blocked lines rise to 40 million
No fewer than 40 million telephone lines were barred by telecommunication operators over the weekend following the expiration of the February 28, 2024 deadline issued by the Nigerian Communications Commission mandating telecom consumers to link the Subscriber Identity Module to their National Identity Numbers.
This represents a 28 million increase from the 12 million telephone lines initially planned to be deactivated by telcos, following the NCC directive.
In a December 2023 notice, the NCC had asked telcos to bar SIMs that had not been linked to their owners’ NINs by February 28, 2024.
On Thursday, the NCC Director of Public Affairs, Reuben Mouka, ruled out an extension of the deadline, warning that telcos that failed to enforce the deadline would be sanctioned.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, then disclosed to The PUNCH telcos would bar 12 million lines as a result of the directive.
However, on Sunday, the ALTON chair revealed that the number of barred lines had risen to 40 million, pointing out that SIMs without NIN were included in the number.
In an exclusive interview with The PUNCH, Adebayo said, “I can tell you that over 40 million lines have been blocked and the affected customers are those who didn’t submit their NIN at all. Some persons have not presented any NIN to operators. They haven’t registered their SIMs or participated in the harmonisation programme.
They simply haven’t made any presentation of the NIN number to their operators and those were the persons blocked. So why is the number so alarming despite repeated warnings? It shows many people still communicate but are not registered.”
In the December 2023 notice, the NCC had also asked the Global Satellite Mobile Communications operators to bar SIMs holders whose NINs have been submitted but not verified by March 29, 2024; and interdict those who have less than five lines linked to an unverified NIN by April 15, 2024.
The Federal Government had, on December 16, 2020, introduced the SIM-NIN synchronisation initiative meant to enable security agencies to track criminals.
The synchronisation involves validating the NIN with the National Identity Management Commission and matching the subscriber’s NIN records with the SIM registration information (verification) to ensure proper subscriber identification.
However, Nigerians have raised questions on why security agencies have not used the SIM-NIN linkage to track criminals, especially bandits and kidnappers, who often use mobile telephone lines to speak with victims’ families during ransom negotiations.
Presently, there are 224.7 million active mobile telephone lines in the country, according to the information released by the NCC on its website.
On Sunday, the ALTON chairman did not give the breakdown of subscribers or SIMs that were deactivated by telcos over the weekend.
He said, “No, we currently don’t have the breakdown of disconnected lines per network right now but I know over 40 million lines have been deactivated.”
Adebayo further hinted that another series of disconnections would be implemented by the end of the month and mid April.
Adebayo said, “The second tier of disconnections that will happen are those who have provided NIN but have more than five Mobile Subscription Identification Numbers associated with their NIN, and these have not been verified.
This is because some have differences in the order of their names, and some have differences in their date of birth.
The information provided to the operator when they did the SIM registration is different from what they provided (to NIMC) when they did their NIN. Some subscribers also have some differences in other records that are very critical to their verification process.
“So these people who have more than five MSINs attached to their NIN and haven’t been verified will be disconnected effective March 30, 2024. So we may have more disconnections happening by the end of this month.
If somebody has given a name that has not been verified and has been receiving text messages to verify and they haven’t done that, by March 30th, those people will be disconnected and the figures will further increase.”
He explained, “There are two sources of data-primary and secondary. During the first registration process, the customer’s information is on-boarded to a server when everyone did the SIM registration but the secondary record is for details given during NIN. Hence your primary record has to be uniform with the secondary data across the platforms before you can be verified.
“Furthermore, for those who have less than five MSINs, by April 15th, they will be disconnected if they don’t harmonise their records before then. So we are going to go through a series of disconnections or service suspensions over the next two months if people don’t follow the laid down regulations.”
Reacting, the President, National Association of Telecoms Subscribers, Adeolu Ogunbanjo, has said the body will seek redress in court on Thursday if the deadline is not extended.
Adeolu, who confirmed that the number of barred subscribers was above 12 million earlier indicated, asked the NCC to consider the plight of customers and grant a 31-day extension.
In an interview with The PUNCH on Sunday, he said, “We have appealed to the Nigerian Communication Commission to extend the deadline till March 31st. But if this is not done, we will observe the situation for the next three days, that is Monday to Wednesday and if this is not granted, we will have to file a case in court on Thursday.
“We have and still appealing that this deadline be extended. We understand their position concerning security issues but a 31-day extension would not harm anyone and that is why we didn’t ask for three months. The NCC boss should please give us this gift as a resumption gift and not punish subscribers.”
Economy
FG services foreign debt with $3.5bn
The Federal Government spent $3.58 billion servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.
This is according to data from the Central Bank of Nigeria on international payment statistics.
The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.
Data from CBN’s international payment statistics reveal that the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m.
In comparison, the highest monthly expenditure in 2023 was $641.70m, recorded in July. The sharp contrast in May’s figures between the two years ($854.37m in 2024 versus $221.05m in 2023) highlights the rising cost of debt obligations, as Nigeria battles massive devaluation of the naira.
The CBN showed significant month-on-month changes in debt servicing costs, with some months recording sharp increases compared to the previous year. A breakdown of the data revealed varied trends across the nine months.
In January 2024, debt servicing costs surged by 398.89 per cent, rising to $560.52m from $112.35m in January 2023. February, however, saw a slight decline of 1.84 per cent, with payments reducing from $288.54m in 2023 to $283.22m in 2024.
March recorded a 31.04 per cent drop in payments, falling to $276.17m from $400.47m in the same period last year. April saw a significant rise of 131.77 per cent, with $215.20m paid in 2024 compared to $92.85m in 2023.
The highest debt servicing payment occurred in May 2024, when $854.37m was spent, reflecting a 286.52 per cent increase compared to $221.05m in May 2023. June, on the other hand, saw a 6.51 per cent decline, with $50.82m paid in 2024, down from $54.36m in 2023.
July 2024 recorded a 15.48 per cent reduction, with payments dropping to $542.50m from $641.70m in July 2023. In August, there was another decline of 9.69 per cent, as $279.95m was paid compared to $309.96m in 2023. However, September 2024 saw a 17.49 per cent increase, with payments rising to $515.81m from $439.06m in the same month last year.
The data raises concerns about the growing pressure of Nigeria’s foreign debt obligations, with rising global interest rates and exchange rate fluctuations contributing to higher costs.
The global credit ratings agency, Fitch, recently projected Nigeria’s external debt servicing will rise to $5.2bn next year.
This is despite the current administration’s insistence on focusing more on domestic borrowings from the capital market.
It also estimated that approximately 30 per cent of Nigeria’s external reserves are constituted by foreign exchange bank swaps.
Regarding external debt, the agency said external financing obligation
The Federal Government spent $3.58 billion servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.
This is according to data from the Central Bank of Nigeria on international payment statistics.
The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.
Data from CBN’s international payment statistics reveal that the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m.
In comparison, the highest monthly expenditure in 2023 was $641.70m, recorded in July. The sharp contrast in May’s figures between the two years ($854.37m in 2024 versus $221.05m in 2023) highlights the rising cost of debt obligations, as Nigeria battles massive devaluation of the naira.
The CBN showed significant month-on-month changes in debt servicing costs, with some months recording sharp increases compared to the previous year. A breakdown of the data revealed varied trends across the nine months.
In January 2024, debt servicing costs surged by 398.89 per cent, rising to $560.52m from $112.35m in January 2023. February, however, saw a slight decline of 1.84 per cent, with payments reducing from $288.54m in 2023 to $283.22m in 2024.
March recorded a 31.04 per cent drop in payments, falling to $276.17m from $400.47m in the same period last year. April saw a significant rise of 131.77 per cent, with $215.20m paid in 2024 compared to $92.85m in 2023.
The highest debt servicing payment occurred in May 2024, when $854.37m was spent, reflecting a 286.52 per cent increase compared to $221.05m in May 2023. June, on the other hand, saw a 6.51 per cent decline, with $50.82m paid in 2024, down from $54.36m in 2023.
July 2024 recorded a 15.48 per cent reduction, with payments dropping to $542.50m from $641.70m in July 2023. In August, there was another decline of 9.69 per cent, as $279.95m was paid compared to $309.96m in 2023. However, September 2024 saw a 17.49 per cent increase, with payments rising to $515.81m from $439.06m in the same month last year.
The data raises concerns about the growing pressure of Nigeria’s foreign debt obligations, with rising global interest rates and exchange rate fluctuations contributing to higher costs.
The global credit ratings agency, Fitch, recently projected Nigeria’s external debt servicing will rise to $5.2bn next year.
This is despite the current administration’s insistence on focusing more on domestic borrowings from the capital market.
It also estimated that approximately 30 per cent of Nigeria’s external reserves are constituted by foreign exchange bank swaps.
Regarding external debt, the agency said external financing obligations through a combination of multilateral lending, syndicated loans, and potentially commercial borrowing will raise the servicing from $4.8bn in 2024 to $5.2bn in 2025.
The anticipated servicing includes $2.9bn of amortisations, including a $1.1bn Eurobond repayment due in November.
The Small and Medium Enterprises Development Agency and economists have stated that the rise in Nigeria’s public debt might create macroeconomic challenges, especially if the debt service burden continues to grow.
The Chief Executive Officer of the Centre for the Promotion of Public Enterprises, Dr Muda Yusuf, explained that the situation could lead to a vicious circle, warning that “we don’t end up in a debt trap.”
He said, “I think there is a need for us to be very conscious of and watch the rate of growth of our public debt. Because it could create macro-economic challenges especially if the burden of debt service continues to grow.”
He maintained that there is a need for the government to reduce the exposure to foreign debts because the number has grown so due to the exchange rate.s through a combination of multilateral lending, syndicated loans, and potentially commercial borrowing will raise the servicing from $4.8bn in 2024 to $5.2bn in 2025.
The anticipated servicing includes $2.9bn of amortisations, including a $1.1bn Eurobond repayment due in November.
The Small and Medium Enterprises Development Agency and economists have stated that the rise in Nigeria’s public debt might create macroeconomic challenges, especially if the debt service burden continues to grow.
The Chief Executive Officer of the Centre for the Promotion of Public Enterprises, Dr Muda Yusuf, explained that the situation could lead to a vicious circle, warning that “we don’t end up in a debt trap.”
He said, “I think there is a need for us to be very conscious of and watch the rate of growth of our public debt. Because it could create macro-economic challenges especially if the burden of debt service continues to grow.”
He maintained that there is a need for the government to reduce the exposure to foreign debts because the number has grown so due to the exchange rate.
Economy
Oil imports drop by $1.52bn in Q2/24 – says CBN
Nigeria’s oil importation dropped to $2.79bn from $4.31bn in Q2 of 2024. This amounts to $1.52bn decline or a 35 per cent decline.
This development was contained in the Central Bank of Nigeria’s quarterly economic report for the second quarter of 2024 released recently.
This reduction highlights shifting dynamics in the nation’s oil and gas sector amid ongoing structural and economic adjustments following the removal of fuel subsidies under the administration of President Bola Tinubu.
The report also noted that the overall value of merchandise imports contracted, falling by 20.59 per cent to $8.64bn from $10.88bn recorded in Q1 2024.
The sharp decline in oil imports contributed significantly to this trend, the report noted.
The report reads: “Merchandise import decreased in Q2 2024, following the decline in the import of petroleum products. Merchandise imports decreased by 20.59 per cent to $8.64bn, from $10.88bn in Q12024.
“Analysis by composition indicated that oil imports decreased to $2.79bn, from $4.31bn in the preceding quarter.
“Non-oil imports also declined to $5.85bn, from $6.57bn in the previous quarter. A breakdown of total import showed that non-oil imports accounted for 67.72 per cent, while oil imports constituted the balance.”
Economy
Naira slumps against dollar to end on negative note
The Naira depreciated against the dollar on Friday at the foreign exchange market to end the week on a negative note.
FMDQ data showed that the weakened to N1678.87 per dollar on Friday from the N1639.50 exchange rate on Thursday.
This represents a N39.37 depreciation against the dollar compared to N1678.87 exchanged on Thursday.
Meanwhile, at the parallel market, the naira gained N10 to exchange at N1740 per dollar on Friday compared to N1750 recorded the previous day.
The development comes as Foreign Exchange transactions turnover surged astronomically to $1403.76 million on Friday from $244.96 million on Thursday, according to FMDQ data.
DAILY POST reports that in the week under review, the naira recorded mixed sentiments of gains and losses.
This showed Naira had continued to experience fluatuations in the FX marketers despite the Central Bank of Nigeria interventions.
Recall that on Wednesday, CBN authorised commercial, merchant, and non-interest banks in the country to manage tradeable foreign currencies deposited in domiciliary accounts established through the new Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme.
-
News16 hours ago
Government to embark on sale of military assets, drones, others
-
News16 hours ago
Fake miracle preachers in trouble as govt moves to arrest them
-
News21 hours ago
Reps Pass For Second Reading Bill Seeking Adequate Funding Of Mineral Exploration Through PPP
-
News15 hours ago
EFCC arrests 35 suspected internet fraudsters in Abia
-
News15 hours ago
ACF pushes for northern presidential candidate in 2027
-
News15 hours ago
Okpebholo sacks Governing Councils of AAU, others
-
News21 hours ago
Reps Direct CBN, Ministry of Finance To Refund 50% Shippers’ Council Deduction
-
News20 hours ago
Reps Panel Threaten To Sanction Five Federal Polytechnics