SIM Sale Suspension Backfires as Nigeria Slipped in Internet Subscriptions to 140.2m in June 2021

SIM Sale Suspension Backfires as Nigeria Slipped in Internet Subscriptions to 140.2m in June 2021

Emma Okonji

Internet subscriptions in Nigeria slipped in eight consecutive months from November 2020 to June 2021, to as low as 140.2 million, after attaining 154.4 million subscriptions in November 2020, according to the latest report on active internet subscriptions by technology, released by the Nigerian Communications Commission (NCC).
The figure is a combination of internet subscriptions on Mobile GSM, Fixed Wired lines and Voice over Internet Protocol (VoIP) technologies.

Analysts blame the decline on the suspension order on the sale and activation of new SIM cards in December 2020 by the Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami.
The figures, which were obtained from NCC’s website, showed that in November 2020, the total number of active internet subscriptions was 154.8 million, but it slipped to 154.3 million in December 2020, with a further slip in January 2021 to 151.3 million.

In February 2021, the figure dropped again to 148.5 million with a further drop in March 2021 to 144.9 million.
From April 2021 to June 2021, the figure also dropped consecutively to 141.8 million, 140.5 million and 140.2 million.
As at June 2021, the total internet subscriptions from Mobile GSM alone was 139.9 million, while subscriptions from Fixed Wired devices was 12,188, and that of VoIP was 348,068, totaling 140.2 million active internet subscriptions for the month of June 2021.

The figures gave information on the number of active subscribers for data (internet) services on each of the licensed service providers utilizing the different technologies, such as GSM, Fixed Wired and VoIP.
Also, the statistics in the last eight months from October 2020 to May 2021, showed a slide in broadband subscriptions and penetration level.

According to the statistics, in October 2020, the total number of broadband subscriptions was 87.7 million, with a penetration level of 45.93 per cent. In November and December 2020, the total number of broadband subscriptions dropped to 86 million and 85.9 million, with penetration level of 45.07 per cent and 45.02 per cent respectively.
Between January 2021 to May 2021, broadband subscriptions and penetration also dropped to 81.94 million, 80.28 million, 78.61 million, 77.61 million and 75.56 million, with penetration level of 42.93 per cent, 42.06 per cent, 41.18 per cent, 40.66 per cent and 39.59 per cent respectively.
However, in June 2021, broadband subscriptions picked up again to reach 76.29 million, with a penetration level of 39.97 per cent.

Worried about the slide in internet and broadband subscriptions between December 2020 and May 2021, industry analysts blamed the slide on wrong policy implementation, which they said, affected the growth of the telecoms industry, within the period.

Chairman, Association of Licensed Telecoms Operators of Nigeria, Mr. Gbenga Adebayo, blamed it on the suspension order on the sale and activation of new SIM cards in December 2020 by the Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami.

Statistics showed that the number of Nigerians with access to broadband (internet high-speed) services on their mobile devices as at Q1 2020, which stood at 87.6 million, reduced to 78.6 million by the end of March, 2021, which was attributed to policy implementation that rather set the telecoms sector backward. During the same period, basic active Internet subscriptions dropped also from 154.8 million to 144.9 million, according to the statistics obtained from NCC’s website.

The Nigerian Communications Commission, had in December 2020, announced the directive of the federal government to suspend further sales and activation of new SIM cards known as Subscriber Identification Module. The suspension was expected to last till the completion of the audit of the Subscriber Registration Database, which seeks to achieve global standards and quality in the issuance of SIM Cards.

Giving reasons for the suspension order, the federal government, in a statement released in December 2020 by NCC, said: “In line with the federal government desire to consolidate the achievement of the SIM Card registration exercise of September 2019, the Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami, has directed the Nigerian Communications Commission (NCC) to embark on another audit of the Subscriber Registration Database again. The objective of the audit exercise is to verify and ensure compliance by Mobile Network Operators with the set quality standards and requirements of SIM Card Registration as issued by the Federal Ministry of Communications and Digital Economy and the Commission.

Accordingly, Mobile Netowork Operators are directed to immediately suspend the sale, registration and activation of new SIM Cards until the audit exercise is concluded, and government has conveyed the new direction.”
While Nigerians were still battling with the suspension order, Pantami, in the same December 2020, issued a fresh directive that made it compulsory for all SIM card registrations to be linked with National Identity Number (NIN), another directive that caused so much pains on telecoms subscribers.
Following the reactions from Nigerians, the suspension order was lifted in April 2021, after its policy implementation had caused setback for the telecoms industry, Adebayo said.

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