Nigeria sets age limit for SIM card ownership

The Nigerian Communications Commission (NCC) has proposed a ban on individuals under the age of 18 from owning and registering SIM cards. The move is aimed at aligning policies with the digital economy's growth and ensuring the safety of minors accessing mobile services. The NCC noted that parents and guardians can register SIM cards on behalf of their children, emphasizing the importance of child protection in the digital age. The proposal comes in the wake of the Nigerian Identification Number (NIN) registration drive launched in December last year, which aims to link SIM cards to unique NIN numbers to enhance security and regulation in the telecommunications sector. The President of the Africa Digital Economy Forum, Olusola Teniola, commended the NCC's initiative, highlighting the need to scrutinize minors' access to online services, particularly during the COVID-19 pandemic. Teniola emphasized the importance of stakeholder engagement in finalizing the policy to address concerns raised by service providers and ensure broad industry acceptance. While some telecom operators have suggested a lower age limit for SIM card registration, the NCC is leaning towards setting the bar at 18 years to align with other legal age restrictions in the country, such as driving licenses and alcohol purchases. The move aims to combat revenue loss resulting from parents and guardians acquiring multiple SIMs in their names and distributing them to minors. However, the impact on subscription numbers is expected to be minimal, with ongoing security challenges and previous network shutdowns in certain states already affecting user base growth. In a separate development, Airtel Africa has announced its intention to buy back 8.27% of minority shareholding in its Nigerian subsidiary. The move aims to increase Airtel's ownership to 100% and consolidate its strategic decision-making in the Nigerian market. By gaining full control of its Nigerian operations, Airtel Africa seeks to enhance competitiveness against regional rivals such as MTN, Vodacom, and Orange. The acquisition of the minority shares is seen as a strategic step towards achieving greater autonomy in the Pan-African telecommunications landscape. The decision by Airtel Africa to increase its stake in the Nigerian subsidiary contrasts with MTN's move to allow more local investors to hold shares in its operations. Airtel's choice to repurchase the minority shares is driven by a desire for control and strategic flexibility rather than a lack of interest in local participation. The company's listing on the London Stock Exchange provides additional options for managing its shareholding structure and optimizing value for shareholders. Overall, the regulatory changes proposed by the NCC and the strategic moves by Airtel Africa reflect the evolving dynamics of Nigeria's telecommunications sector. As the country continues to embrace digital transformation and foster industry competition, stakeholders are navigating a complex landscape of regulations, ownership structures, and market positioning to chart a sustainable path for growth and innovation.