MTN’s Subscriber Decline in Nigeria: Navigating the NIN-SIM Compliance Challenge
In recent developments, MTN Nigeria, the nation's leading telecom operator, has witnessed a significant decline in its active subscriber base. This downturn is attributed to the enforcement of the National Identification Number (NIN) and Subscriber Identity Module (SIM) card linkage policy mandated by the Nigerian Communications Commission (NCC).
As of January 2024, MTN reported a loss of over 2.8 million internet subscribers, a record drop since May 2023. This decline has brought MTN's subscriber count down to 67.8 million from the previous 70.6 million. The NCC's directive, which aims to enhance security and curb improper telecommunications activities, required all telecom operators to deregister phone lines without a linked NIN and those with unverified NINs.
The impact of this policy has been profound on MTN, given its history of fines with the NCC, including a notable $5.2 billion penalty in 2015 for failing to disconnect unregistered SIM cards. In response to the NCC's directive, MTN embarked on an extensive campaign to inform its subscribers of the need to update or register their NINs. Despite these efforts, the deadline extension to July 31, 2024, has not alleviated the immediate effects on the subscriber base.
Interestingly, while MTN grapples with this challenge, competitors Airtel and Globacom have experienced subscriber growth. Airtel added approximately 890,935 subscribers, while Globacom gained 192,313, mitigating the overall industry impact of MTN's decline.
The NIN-SIM linkage policy, while essential for security, has presented a complex scenario for telecom operators. MTN's experience underscores the delicate balance between regulatory compliance and customer retention. As the deadline approaches, the industry will closely monitor the situation, hoping for a resolution that supports both national security and the growth of Nigeria's telecommunications sector.