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Mobile Operators Defy Government, Deepen Insecurity

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  • Mobile Operators Defy Government, Deepen Insecurity

Despite the danger the illegal sale of pre-registered Subscriber Identification Module (SIM) cards portends to the nation’s security, the practice has continued. Investigation reveals that virtually all the Mobile Network Operators (MNOs) are involved in the illegality.

Agents clad in the aprons of the service providers have been spotted in the Lagos areas of Island, Ikeja, Airport Road, Ikotun, Ojuelegba, Yaba and Oshodi, and in Mararaba Nyanyan, Berger and Wuse in Abuja.

The Nigerian Communications Commission (NCC) views the sale or use of pre-registered SIM cards as an offence attracting a fine or jail term or both. An indicted telecom company risks a N200,000 fine for every pre-registered card.

MTN was fined about $5.2 billion in October 2015, after it was discovered that some 5.2 million lines on its network were not properly registered. Other operators including Globacom, Airtel and Etisalat (now 9Mobile) were also fined about N100 million four years back.

Investigations showed that competition among the operators is a major factor fuelling the menace. But also, some Nigerians, ignorant of the dangers they are courting, prefer to simply buy pre-registered cards, rather than spend a few minutes inputting their details into a computer.

According to an Abuja-based security expert, Chukwuma Alozie, the purchase of such cards would appeal to criminal elements. He urged relevant authorities to monitor the service providers closely. He regretted that ignorance and the high rate of joblessness in the country were causing many unsuspecting youths to be lured into attaching their biometric details to multiple SIM cards.

“Hardly do they know that very soon they would be held for high crimes committed by those who bought the cards. They are not even aware that when many criminals use these cards, it confers the status of ‘hardened criminal’ on the unsuspecting registrants. They risk spending their lives in jail or dying at the gallows for crimes they did not commit,” said Alozie.

At a recent workshop in Gombe, organised by the NCC for law enforcement agencies on telecommunications matters, Inspector General of Police Ibrahim Idris described the sale and use of pre-registered SIM cards as a grave threat to security and governance.

According to him, “Criminal activities, including the use of pre-registered SIM cards, should be of concern to all of us. As a law enforcement officer, it is my belief that in addressing these challenges, we must re-strategise on our noble programme of community policing across communities and give our communities greater stake in securing national assets.”

The June subscriber statistics from the NCC showed that the operators have connected 243.9 million telephone lines with 162.8 million active. On this, MTN controls 40.9 per cent, amounting to 66.5 million customers; Globacom has 40.1 million subscribers and enjoys 24.7 per cent market share. Airtel with 39.9 million subscribers earns 24.6 per cent market control, while 9Mobile with 9.7 per cent market share services 9.7 million customers. The country has a teledencity of 116 per cent.

The problem is a recurring embarrassment to the industry, said Chief Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers of Nigeria (NATCOMS), urging the NCC to take drastic action.

He said some operators, who give permission to agents to start registering their (operators’) SIMs are to blame. “Because these agents want to register more and make some money, they just register anyhow, put a face on the profile and that is it,” he said.

According to him, the sharp practice is fuelled by competition among the operators. “They are the ones that should ensure due diligence is done. Perhaps, they should stop registration or start registering one person or two and keep a tab on them in the rural areas. But in the cities, they have enough customer care centres. Rather than them giving authority to some small boys, who would put them into trouble, they can get educated agents and ensure they supervise them regularly.”

The NATCOMS president also stressed the need for the enforcement arm of the NCC to step up its work.

The chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), Gbenga Adebayo, in an email response to The Guardian enquiry on the matter, said: “We need to continue to ensure compliance and sanctions on established willful infractions.”

Responding to The Guardian inquiry on what his office is doing to curb the menace, the Minister of Communications Adebayo Shittu said handling the problem was the responsibility of the NCC, “while the ministry handles the formulation of broad policy issues.”

The executive vice chairman, NCC, Prof. Umar Danbatta, on his part, maintained that selling pre-registered SIM cards is an act of illegality that undermines national security.

Danbatta, who did not rule out sanctions for any operator found culpable, urged Nigerians that rather than patronise criminals who peddle pre-registered cards, “the public should report them to law enforcement agencies, as part of their responsibility, not only as subscribers but also as good citizens.”

Describing the menace as grievous, he noted: “Our Compliances Monitoring and Enforcement Department is currently going round the country with a view to fishing out the perpetrators.”

Late last year, farmers in northern Nigeria urged wireless operators to block SIM cards that had not been formally registered, saying they aided the operations of Boko Haram.

An online news platform had quoted the head of the region’s association of small-holder farmers, Mohammed Sani, saying: “We will stage a protest against MTN and take necessary legal action, if it fails to comply with this directive.”

But MTN Nigeria’s General Manager, Corporate Affairs, Omasan Ogisi, in an email, said the telecommunications firm condemns any illegality including the sale and distribution of pre-registered SIM cards.

For her, the firm always takes punitive actions against agents found engaging in the illicit activity. The measures include blacklisting and withdrawal of SIM registration devices used for such an illegality.

“SIM registration kits/devices have been tagged to specific agents. And as such, we are able to tell which kit and agent is responsible for registering a SIM card and hand over such to law enforcement authorities for prosecution,” she said.

According to her, MTN has established partnerships with law enforcement authorities in places where such activities are prevalent. “By virtue of such partnerships, we are able to point them in the direction of such locations, so that they can apprehend the culprits and let the law take its natural course,” she said.

For her, the firm engages in periodic/continuous public awareness campaigns, highlighting the need for subscribers to desist from purchasing such SIM cards and ensures that they personally register the SIM cards they intend to use.

Also, 9Mobile’s acting director, Regulatory and Corporate Affairs, Seyi Osunsedo, said the firm strictly enforces rules that limit the ability of its trade agents to pre-register SIM cards.

She said: “We have since implemented the NCC’s rule mandating telcos to block any registered SIM card, which is not used within 48 hours after registration. This helps ensure that even if a line is pre-registered, the agent is unable to keep it on sale for more than 48 hours.

“In addition, our registration systems are designed to ensure that only validly registered lines are activated and if a line is not validly registered; such is unlikely to be activated even if purchased.”

Noting that pre-registered lines are typically listed using false details, she said: “9mobile continuously explores ways to further strengthen existing checks, to help prevent the pre-registration of lines. 9mobile also conducts spot checks, which have led to the arrest and prosecution of individuals found to be selling pre-registered 9mobile lines.

“9mobile also continuously educates its subscribers on the risks associated with purchasing pre-registered lines and the need to ensure that their lines are registered in their names and with their details.”

Airtel and Globacom were yet to respond as at press time.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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