Nigeria produces 100% SIM cards locally, 2 years after ban on importation

The Nigerian Communications Commission (NCC) has announced that all SIM cards used in Nigeria are now manufactured domestically. This development was revealed by Babagana Digima, Head of New Media and Information Security at the NCC, during a recent media training session in Lagos.

The training session, titled “Upskilling Media Stakeholders on Trends in Telecommunications,” aimed to update media executives on the latest advancements in the telecom sector. The two-day event was designed to enhance the understanding of media professionals about current trends and the NCC’s strategic goals.

According to Digima, the NCC’s efforts, led by the Nigeria Office for Development in the Indigenous Telecommunications Sector (NODITS), have been pivotal in promoting local content and boosting Indigenous participation.

“Before NODITS’ intervention, nearly all SIM cards in Nigeria were imported,” Digima stated. “We set an ambitious goal to reverse this trend, and now 100% of SIM cards used in Nigeria are manufactured locally.”

Digima, who previously headed NODITS, highlighted the commission’s ongoing initiatives to support local manufacturing in the telecommunications industry. He noted that NORDIT has provided grants and incentives to various companies, including sponsoring the production of Corrugated Ordinal Duct and encouraging local manufacturing of telecom towers and fibre cables.

Notably, Coleman Cables, a Nigerian manufacturer, has surpassed its Egyptian counterpart in production capacity and continues to expand.

 “One of NODITS’ key areas of impact has been in fostering Indigenous participation,” explained Digima. 

The NCC’s mandate under Sections 1D to F of its Act is to encourage the participation of indigenous telecom companies, which led to the establishment of NODITS. This office has played a critical role in fostering local involvement in the telecom sector.

Dr Aminu Maida, the Executive Vice-Chairman of the NCC, also spoke at the event. Represented by Engr. Abraham Oshadami, the Executive Commissioner for Technical Services at the NCC, Maida emphasised the importance of improving communication between the commission and the public. He highlighted the crucial role of the media, which includes executives from print, broadcast, and online platforms.

Maida elaborated on the objectives of the training, which aims to develop a reliable database of media partners and foster strategic relationships with stakeholders.

“This initiative will help shape the industry landscape and ensure consumers are well-informed about developments within the sector,” he added.

Backstory

In June 2022, the then Minister of Communications and Digital Economy, Isa Pantami, informed the public that the Buhari administration had established a SIM card manufacturing plant in Lagos.

And in August 2022, Nigeria’s Federal Government announced the ban on importing SIM cards.

Pantami said, “Let me make it clear that the federal government will no longer tolerate the importation of sim cards. We are now producing them in Nigeria.

“We aim to increase Indigenous content in the ICT sector so that by 2025, we will be self-reliant by at least 80 per cent”, the minister noted.

About one year after, at the 2nd edition of the Nigerian Telecommunications Indigenous Content EXPO (NTICE) 2023, the then executive vice chairman, of NCC, Prof. Umar Garba Danbatta said the ban eased the burden on the sector’s demand for foreign exchange and created business over ₦55 billion for the local SIM card manufacturers in Nigeria which in turn has created direct and indirect jobs.

“To sustain and further improve Quality of Service and Quality of Experience in telecommunications services in Nigeria, we must embrace Indigenous content and value creation within the telecoms value chain, otherwise, an increase in telecoms tariff will be inevitable.”

“Nigeria with its rich history of innovation, resilience, and creativity as well as our diverse culture, talents, and perspectives has birthed solutions that uniquely cater for our challenges and aspirations,” Danbatta said.