SIM-swap fraud remains one of Nigeria’s most persistent financial crime challenges, with billions of naira reportedly lost in telecom-related fraud over the past few years. As banks, regulators, and telecom operators search for more effective solutions, MTN Nigeria says collaboration between financial institutions and telecom companies could reduce the risk.
According to the Nigerian Communications Commission (NCC), Nigerians lost about ₦12.5 billion to telecom-related financial crimes between 2019 and 2023, many of which involved SIM-swap fraud and other social engineering tactics.
MTN Nigeria argues that banks should pay telecom operators for access to additional network security services that would help detect SIM swaps, recycled phone numbers, and other events before fraud occurs.
MTN Nigeria’s Chief Corporate Services and Sustainability Officer, Tobe Okigbo, said mobile phone numbers are not permanently owned by subscribers but are licensed assets managed by telecom operators.
“Ideally, if you’re going to use our numbers as identifiers, the banks should be paying us because if our numbers are used as identifiers, we’d build the security required so that if something goes wrong, we’d be culpable” – Okigbo
He stated that inactive phone numbers are recycled in line with NCC regulations after an extended quarantine period, adding that telecom operators are not responsible for how banks choose to use phone numbers as customer identifiers.
Stakeholders, like Adedeji Olowe, the CEO of Lendsqr amongst others, argue that the solution should go beyond commercial arrangements. Olowe called for better customer education on inactive SIM cards, improved communication before numbers are recycled, and adoption of telecom intelligence services that allow banks to verify SIM status before authorising sensitive transactions.
Meanwhile, a senior banking executive described MTN’s proposal as a practical solution but suggested that implementation would be more effective through an agreement coordinated by the Central Bank of Nigeria (CBN) and the Nigerian Inter-Bank Settlement System (NIBSS) rather than through individual commercial negotiations.
The proposal comes months after the CBN and the NCC launched the Telecom Identity Risk Management Portal (TIRM), a data-sharing platform designed to help banks and telecom operators identify recycled, swapped, and blacklisted phone numbers in real time.
CBN Governor Olayemi Cardoso said the platform would provide an additional layer of protection for consumers and the financial system.
