Telecom
How NCC Stopped $3Bn Call Masking Revenue Fraud In Nigeria
The masking of foreign calls with local phone numbers was illegal, a security risk and also a threat to the revenue base of major mobile network operators (MNOs) whose networks were bypassed for such calls.
According to Leadership investigation revealed that call masking or refiling is the practice of cloning a local telephone number in place of an international number and vice versa with the intention of misconstruing the network that the call was a local call just to shortchanging the telecom operator and the government of revenue due it.
According to the executive vice chairman, Nigerian Communications Commission (NCC), Professor Umaru Danbatta, “SIM boxing or Interconnect Bypass Fraud (IBF) is one of the most prevalent frauds in the telecom industry today and it is estimated to be costing the industry $3 billion in lost revenue.”
Danbatta described call masking as a phenomenon whereby an international call is masked to appear as a local call on any GSM network in Nigeria while SIM Boxing on the other hand refers to electronic boxes or devices with multiple SIMs that have the capacity to terminate calls at local interconnect rates. He said SIM Boxing was observed to have started at the time the Commission decided to review international termination rates from N 3.90/ min. to N24.40/ min. for international inbound traffic which provided an opportunity for technology manipulators to terminate calls at N 3. 90/ min. and cart away the difference thereby cutting the revenue meant for the Operators and by implication the government. A SIM box has capacity to receive and transmit calls undetected.
“However, the challenge is that these SIM boxes are never type-approved by the Commission, a clear indication that they are being used illegally in the country”, the NCC boss stated then. To drive home the point that the Commission was serious about flushing the twin evils out of the industry, Professor Danbatta quickly vide a letter with Ref: TSNI/GEN/VOL.4/115 dated July 19, 2017 directed relevant licencees to ensure the cessation of call masking or refiling activity on their respective networks. The deadline for compliance was July 28, 2017. Furthermore, on August 3, 2017, at a stakeholders meeting organized by the Commission in which the affected companies participated, it was resolved that a comprehensive investigation would be carried out by the NCC to determine the companies/licences involved in the illegal act.
All the licences were warned to desist from this practice. It was also agreed that identified culprits would be sanctioned as part of measures to forestall the negative impact of this incidence on national security. After months of thorough investigation, the telecom regulator in a letter dated January 12, 2018 signed by Yetunde Akinloye, head, legal and regulatory services and Efosa Idehen, head, compliance monitoring and enforcement on behalf of the executive vice chairman/CEO, NCC, issued the Notice of Intention to Suspend licence pursuant to Section 45 (1) and (3) of the Nigerian Communications Act of some culprits found wanting. NCC gave notice of its intention to suspend the interconnect exchange licences granted to six telecommunications clearinghouses over the unethical practice of allowing call masking and call refilling emanate from their facilities.
The companies Medallion Communications Limited, Interconnect Clearinghouse Nigeria Limited, Niconnx Communication Limited, Breeze Micro Limited, Solid Interconnectivity and Exchange Telecommunications Limited and they were given p to January 31, 2018 to state reasons why the regulator should not suspend their licences. According to the NCC’s letter, ““having carefully analysed all the relevant data collected in the course of its investigation activities, the Commission has established a direct and indirect evidence against your company in the illegal and unwholesome activity of call masking and refiling. “Consequently, the Commission, pursuant to Section 45 (1 and (3) of the Nigerian Communications Act, 2003 hereby gives you Notice of its Intention to suspend Interconnect Exchange Licence granted to your company due to your involvement in call masking and refiling and your failure to rectify the breach, despite repeated interventions by the Commission. You are therefore required to state reasons why the Commission should not suspend the said licence. We expected to receive your response on or before January 31, 2018” the letter read. Nearly a month later, NCC handed various levels of sanctions to telecom clearing houses and network providers implicated in the high incidence of call-masking, call-refiling and SIM-Boxing. NCC conducted a painstaking investigation process which included collaboration with the Office of the National Security Adviser (NSA) and the Department of State Services.
Among the various ranges of sanctions were the suspension of the Interconnect Clearinghouse License issued to Medallion Communications Limited for a period of 90 days, in the first instance; Issuance of a strong warning to Interconnect Clearinghouse Nigeria Limited; disconnection of Information Connectivity Solutions Limited (ICSL) and Solid Interconnectivity Services Limited from all networks, until they regularize their operations. Others were: Issuance of letters to Exchange Telecoms Limited, NiconnX Limited and Breeze Micro Limited, cautioning them against engaging in the fraudulent practice; and barring of over 750,000 numbers assigned to several Private Network Links (PNL) and Local Exchange Operator (LEO) licensees, which number ranges were found to have been utilized for the practice.
The Commission said the sanctioned entities were found to be directly and indirectly complicit in several infractions, including, covertly allowing organisations with expired licences to transit calls, failure to undertake due diligence on parties seeking to interconnect, deliberately turning a blind eye to masking infractions by interconnect partners, and using a licence issued to another organisation to bring-in and terminate international calls which were masked as local calls to other operators.
During the investigation, it was found that over 750,000 individual numbers across the nation made up of about 31 number ranges were used for the fraud. NCC barred those numbers which belonged to Vezeti Communications Services Limited, Voix Networks Limited, Mobitel Limited, Peace Global Satellite Communications Limited, ABG Communications Limited, Vodacom Business Africa (Nigeria) Limited, Swift Telephone Networks Limited, QVODA Telecoms Limited, Wireless Telecoms Limited and Emcatel Networks Limited. The Commission found that some of them were terminating millions of minutes, whereas they only have very few active customers. Following that, NCC began the second stage of investigation which focused on the Mobile Network Operators and other persons involved in SIM-Boxing. The aim of the Commission was to completely stamp out the fraudulent practice in the overall interest of all Nigerians. To this end, NCC in 2018 introduced a new technology which nipped in the bud, menace of call masking and call refiling
Telecommunications and digital services provider, Globacom, has partnered with the Federal Ministry of Communications, Innovation and Digital Economy and Huawei Nigerian Enterprises, to provide digital access to 7,000 remote communities in Nigeria with the commissioning of the pilot project in Isuanin Kura in Ibwa 2, Gwagwalada, on the outskirts of the Federal Capital Territory, Abuja on Wednesday.
The project, which is championed by the Ministry, will deliver 2G/3G/4G services, free public Wi-Fi access, digital healthcare and remote learning capabilities to the over 12,000 residents of the community.
Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, was full of commendation to Globacom and Huawei for supporting President Bola Tinubu’s commitment to addressing the connectivity crisis affecting more than 20 million Nigerians who currently lack basic telecommunication access in the country.
Said he: “If you bring out your phone in many communities, there is no network at all. This is costing the country significantly because people cannot access financial services, medical care, or education”, adding that this also poses governance challenges as disconnected areas are difficult to administer.
“Where you live should not determine your access to opportunity. We are using innovation to ensure every Nigerian, regardless of location, can thrive in the digital age”, the Minister added.
Globacom’s Group Chief Technical Director, Mr. Sanjib Roy, who spoke on the project said the company worked with the Ministry and Huawei to bring up the site by providing the Microwave backhaul link and access to Globacom’s full core network resources and also manage the operation of the site to ensure uninterrupted voice and data services for the community.
“The Smart Education facility allows for young students within the community to receive education remotely, with the teachers being in Abuja or any other part of the world, while Healthcare delivery has been revolutionised through connected medical equipment that enables remote consultations between patients in Ibwa and doctors and specialists in urban-locations”, Mr Roy explained. The site and all the equipment are powered by solar thereby ensuring clean environment and uninterrupted power supply.
During the inauguration, the system’s effectiveness was demonstrated with the leader of Isuanin Kura, Ibwa 2 Community, Chief Abubakar Bamaiyi, having a live consultation with a medical doctor in Abuja, while the Minister and other guests watched as the students in the local school were being taught via online video by a teacher in Lagos, using equipment provided by Huawei.
Mr Kazeem Kaka, Globacom’s Head of Division, North West, who also spoke at event, said, “For Globacom, this is a continuation of our long-standing mission to democratize access to communication. Since 2003, we have remained at the forefront of efforts to lower the barriers to connectivity—making telephony, internet, and data services more accessible and affordable for all Nigerians.
“Today’s launch reinforces that commitment. We are particularly excited about the impact this initiative will have on education, healthcare, and economic empowerment of Ibwa people”.
In his remarks, Mr Terrens Wu, Managing Director, Huawei Nigerian Enterprises, said his company was proud to be part of the initiative to provide connectivity, and promote learning and healthcare in rural communities through digital technology. His company later gave out 120 affordable smartphones to the community to help them have access to telephony.
National Identity Management Commission (NIMC) has unveiled an ambitious plan to register at least 95% of Nigerians into the National Identity Database before the end of 2025, aligning with President Bola Tinubu’s Renewed Hope Agenda on digital governance and inclusive development.
Speaking at a media briefing in Abuja, NIMC Director-General Abisoye Coker-Odusote outlined the agency’s strategy, which includes expanded registration centers, improved infrastructure, and intensified public sensitization campaigns.
“As part of our efforts, we are launching the Ward Enrollment Exercise to ensure that at least 95% of Nigerians are captured by December,” she stated.
NIMC reported that over 120 million Nigerians have already been enrolled, with the target set to register an additional 100 million before year-end. Coker-Odusote emphasized that the exercise would provide the government with accurate population data, enabling better planning and resource allocation.
Addressing concerns about data security and public trust, the NIMC boss assured Nigerians that robust measures have been put in place to safeguard personal information.
She highlighted initiatives such as the NIN Authentication system, which allows individuals to control access to their data through user consent management.
Additionally, NIMC is collaborating with security agencies to track and shut down fraudulent NIN websites while working alongside the Nigeria Data Protection Commission (NDPC) to ensure that enrollment officers receive proper certification in data handling.
“To foster trust, we are ensuring that all personnel handling data are certified experts through NDPC training programs,” she explained.
Looking ahead, Coker-Odusote revealed that NIMC is actively working to integrate all ministries, departments, and agencies (MDAs) to eliminate fragmented operations.
She also disclosed plans to launch a Public Key Infrastructure (PKI) initiative, which will enhance trust in government transactions and digital interactions.
“In the near future, MDAs will be able to implement digital signing across platforms, seamlessly exchanging documents within and between various establishments, thereby advancing e-government and the digital economy,” she added.
The mass enrollment drive, coupled with the strengthening of cybersecurity frameworks, positions Nigeria for an inclusive and efficient national identity system that will serve as a foundation for digital transformation.
As artificial intelligence (AI) continues to transform the global digital landscape, two prominent technology leaders have issued urgent warnings and strategic calls for Nigeria and Africa to adopt a unified, governance-driven approach to AI development, emphasizing that trust, regulation, and cybersecurity are more important than ever.
L-r: Dr. Krishnan Ranganath, Regional Executive, West Africa, Africa Data Centres, Adewale Obadare, chief visionary officer, Digital Encode, Amrish Singhal, chief operations officer, Spectranet, Engr. Ike Nnamani, Managing Director, Digital Realty Nigeria and Rudman Muhammed, Managing Director, Internet Exchange Point of Nigeria, at the 16th Africa’s Beacon of ICT Merit and Leadership awards held in Lagos recently.
At the 2025 Africa’s Beacon of ICT Merit & Leadership Award (ABoICT 2025), held over the weekend in Lagos, Professor Adewale Peter Obadare, Chief Visionary Officer of Digital Encode, and Amrich Singhal, Chief Operating Officer of Spectranet, independently but powerfully echoed the same sentiment: AI without governance is a ticking time bomb.
Delivering his keynote on “AI Governance, Standardization and Cybersecurity in the AI Era,” Prof. Obadare warned against the rising trend of “AI washing”—where companies label basic software or services as “AI” to capitalize on hype, often without the underlying technological integrity or oversight.
“People are calling everything AI today, from photography apps to basic automation, but no one is talking about AI governance,” he said.
Drawing comparisons to the early days of the internet, Obadare cautioned that failing to integrate security and governance into AI architecture could lead to far-reaching consequences. “We are repeating the same mistake we made with TCP/IP, which was not built with cybersecurity in mind. We cannot afford to make that error again.”
He emphasized that governance should not be seen as a hindrance but as an enabler of safe innovation. “Governance is not a brake to stop movement; it is a brake to make movement safe,” he said.
Citing international standards like ISO/IEC 42001 and ISO/IEC 38507, Obadare called for responsible innovation grounded in clear ethical guidelines, stressing the importance of securing the core components of AI: data, models, and infrastructure.
Echoing similar concerns, Amrich Singhal, chief operating officer, Spectranet in his presentation themed “Responsible AI and Nigeria: Balancing Innovation, Regulation, and Cybersecurity,” stressed that “the countries that will benefit most from AI are not necessarily those with the most powerful models, but those with the most trusted systems.”
Singhal painted AI as a double-edged sword, capable of boosting national productivity while also enabling new forms of cyber manipulation—from deepfakes to identity theft and disinformation. “AI can clone voices, create fake personas, and even undermine democracy. It’s no longer a question of readiness, it’s a question of urgency,” he declared.
He acknowledged Nigeria’s potential due to its youthful, tech-savvy population and its expanding use of AI across sectors like healthcare, agriculture, education, and oil exploration.
However, he criticized existing regulatory structures such as the Nigeria Data Protection Regulation (NDPR) and NITDA’s 2023 draft AI framework as being “underdeveloped, underfunded, and poorly enforced.”
Both experts called for a multi-stakeholder approach to AI governance. Prof. Obadare warned of real-world failures, such as Microsoft’s racist chatbot Tay, Amazon’s gender-biased recruitment AI, and Uber’s fatal autonomous vehicle incident, not as tech failures, but as governance failures.
He also cited cybersecurity breaches, including the 2023 hacking of OpenAI’s ChatGPT and the leak of DeepSeek’s API keys and user data on launch day, to stress that “the danger is not just in the algorithms, but in how we design and deploy them.”
Singhal proposed a three-tiered strategy to build Nigeria’s AI resilience: government must champion AI education, create safe innovation sandboxes, and enforce data laws; private companies must adopt ethical and secure design practices; and civil society must raise awareness of digital rights and AI risks—especially for vulnerable populations.
In a firm conclusion, Prof. Obadare urged that “governance must be embedded by design,” warning that irresponsible innovation has already proven costly and called on both developers and policymakers to act before Nigeria’s AI future becomes a liability rather than a strength.
Meanwhile, Singhal closed with a stark challenge: “AI is already here. The question is not whether to use it, but how. Nigeria must choose whether AI will be a great equalizer or its greatest vulnerability.”
As the nation moves deeper into the AI era, the message is clear: building trust, enforcing cybersecurity, and embedding responsible governance must be at the core of Nigeria’s AI journey, before it’s too late.
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