By Ifeoma Ben, LLM, MBA
Nigeria’s telecom sector has revolutionised communication, but it also faces a rising tide of fraud, including SIM swap scams, unauthorised registrations, and mobile-linked financial crimes. The Nigerian Communications Commission (NCC) reports that over the past four years, ₦12.5 billion has been lost to telecom-based financial crimes, which threaten consumer confidence and undermine digital inclusion. Recent high-profile cases involving MTN and Airtel highlight systemic weaknesses in SIM registration and network security.
The Mechanics of SIM Swap and Telecom Fraud
SIM swap, a form of account takeover fraud, involves transferring a victim’s phone number to a rogue SIM card using stolen personal data. Fraudsters then intercept one-time passwords to drain bank accounts or commit identity theft. NCC has maintained stringent SIM replacement guidelines since 2017, mandating affidavits, valid ID, NIN linkage, and in-person verification at licensed outlets to safeguard against fraud. Despite this, unauthorised SIM registrations using illicit devices persist. For instance, Airtel faced a ₦104 million fine in June 2025 for infractions related to mass unverified SIM activations and premature MSISDN activations.
Regulatory Interventions: Measures and Enforcement
NCC has responded with a series of regulatory measures:
• Mandatory SIM blocking within five minutes of being reported lost or stolen, shielding consumers from fraudulent use.
• Collaborative crackdowns led by NCC, NIMC, and the Office of the National Security Adviser have uncovered illegal SIM clusters, some registering thousands of SIMs, and enforced a full NIN-to-SIM linkage.
• Consumer safeguards like the Do Not Disturb (DND 2442) short code and toll-free complaint line (622) ensure that subscribers have clear channels to report suspected fraud and billing issues.
These efforts reinforce consumer protection by ensuring verification integrity and immediate shutdown of fraudulent SIM lines.
Consumer Rights and Protection
Consumers have the right to secure registration, transparent services, and swift resolution of complaints. NCC’s enforcement of SIM swap protocols requiring affidavit plus valid ID and limiting registrations to approved outlets serves to protect these rights. Yet, there is tension: some customers feel burdened by these processes, though the NCC emphasises they are intended to prevent fraud. Empowering consumers also includes public education and escrow liability, encouraging banks and telcos to act promptly upon fraud incidents.
Impact on the Legal Industry
The regulatory response to telecom fraud has expanded legal practice areas in several ways:
1. Judicial and Administrative Defence: Telcos subjected to regulatory fines (e.g., Airtel’s ₦104 million sanction) require legal representation in defence or negotiation, necessitating experts in telecom regulation and administrative law.
2. Compliance Advisory: Lawyers are critical in aiding telecom companies to comply with SIM registration rules, NIN linkage mandates, data protection laws, and maintaining rigorous KYC protocols.
3. Litigation and Compensation Claims: Victims of SIM swap fraud increasingly seek legal recourse against telcos and banks for negligence, mismanagement, and failure to secure personal data.
4. Contractual Frameworks for Agents: With SIMs sold through extensive agent networks, legal professionals draft contracts that enforce ID verification, liability in fraud, and indemnification clauses.
5. Policy and Legislative Advocacy: Legal practitioners are influencing future NCC regulations and amendments to telecom and data protection laws, championing stricter fraud deterrence measures, consumer compensation policies, and clear liability frameworks.
Conclusion
Telecom fraud and SIM swap scams represent a serious threat to Nigeria’s digital trust and consumers’ economic well-being. The NCC’s evolving regulatory framework, including rapid SIM blocking mandates, strict registration protocols, and enforcement actions, reflects determined efforts to combat these threats. However, achieving comprehensive consumer protection will require ongoing public awareness campaigns, collaboration among telecom providers, financial institutions, and law enforcement, and robust legal frameworks. For the legal industry, this presents a promising field for advisory services, compliance support, dispute resolution, and policy development, vital roles in building a safer, more trustworthy telecom ecosystem.
