How Seamless Bank–Telco Coordination Can Eliminate SIM Reassignment Risks in Nigeria - Akin Adegoke
A dangerous but often overlooked issue in Nigeria’s digital finance ecosystem is the recycling of phone numbers that remain linked to bank accounts. This practice can unintentionally expose sensitive financial information to new users, raising concerns about whether telecom industry processes have kept pace with the expanding role of mobile numbers in financial services.
In this interview, Akin Adegoke, Chief Digital Officer at Lotus Bank, examines the scale and urgency of the problem. With over eight years of experience in digital banking, including roles at Keystone Bank and Polaris Bank, and as part of the founding team of ALAT by Wema, Africa’s first fully digital bank, he offers insight into the risks and outlines practical solutions to strengthen trust in Nigeria’s rapidly growing digital banking ecosystem.
Source: UGC
Rising concern: Recycled numbers and fraud risk
A recent investigation by the Foundation for Investigative Journalism highlighted the risks Nigerians face when recycled phone numbers remain tied to financial services.
Reacting to this, Adegoke stressed that reassigned numbers pose a significant fraud risk by potentially exposing sensitive banking information.
He said:
"It’s a significant risk. Phone numbers in Nigeria are linked to alerts, USSD banking, and authentication, so when a number is reassigned, sensitive information can inadvertently reach someone else. While banks have security layers, this gap exposes customers to potential fraud. Coordinated action between banks and telecoms is critical to reduce these risks."
Adegoke further explained that when a telecom operator reassigns a number previously linked to a bank account, the new owner may begin receiving transaction alerts or one-time passwords (OTPs) meant for the former user.
If authentication systems are weak, this could open the door to unauthorised account access. Even with robust safeguards, he warned that reassignment without proper checks creates avoidable security gaps.
Mobile numbers as financial identifiers
In Nigeria, phone numbers are widely used for alerts, USSD banking, authentication, and even identity verification—effectively turning SIM cards into financial identifiers. Adegoke noted that while official identification still relies on KYC processes and the Bank Verification Number (BVN), mobile numbers have become a primary access point to many banking services.
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He explained that the core challenge lies in the delay or failure to update banking systems when users change their phone numbers. While some stakeholders argue that SIM cards should be treated as financial IDs rather than disposable telecom tools, Adegoke believes this would require stricter verification before numbers are reassigned, along with stronger coordination between banks and telecom operators.
He added:
"Systems would need to flag reassigned numbers to prevent accidental exposure of sensitive information. Ultimately, it would acknowledge the financial role that mobile numbers now play."
The case for bank–telecom coordination
Many experts have called for automatic coordination between banks and telecom operators whenever a phone number is reassigned. Adegoke supports this approach, suggesting that a coordinated alert system could help prevent fraud by flagging reassigned numbers and restricting sensitive transactions until ownership is verified.
He said:
"A secure notification system could alert banks whenever a number is deactivated or reassigned. Banks could then temporarily flag or restrict sensitive activities until the customer confirms ownership. This type of coordination would significantly reduce exposure to fraud."
Balancing security and data privacy
Addressing concerns about data privacy in such collaborations, Adegoke clarified that banks do not need access to personal subscriber information. Instead, they only require the status of a phone number to help prevent unauthorized access while preserving user privacy.
He stated:
"Banks don’t need personal details of the new subscriber; they just need to know the status of the number. With this approach, telecoms and banks can prevent unauthorised access while still protecting customer privacy."
The role of regulators - CBN, NCC
He also highlighted the critical role of regulators such as the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in tackling the risks associated with recycled phone numbers.
According to him, coordinated regulatory action can help establish clear standards, reduce fraud risks, and strengthen consumer confidence in digital banking.
He said:
"Regulators need to set standards and ensure coordination. The CBN should define banking security requirements, while the NCC manages number lifecycle rules. Their collaboration ensures that number reassignment doesn’t create unnecessary risks."
Source: UGC
Conclusion: Practical steps to reduce risk
In conclusion, Adegoke proposed several immediate measures that could be adopted across Nigeria’s financial and telecom sectors to reduce the risks associated with SIM reassignment.
These include real-time notifications from telecom operators to banks when numbers are reassigned, mandatory PINs or multi-factor authentication for USSD and mobile banking, and encouraging customers to promptly update their banking details whenever their phone numbers change.
These include real-time notifications from telecom operators to banks when numbers are reassigned, mandatory PINs or multi-factor authentication for USSD and mobile banking, and encouraging customers to promptly update their banking details whenever their phone numbers change.
Source: Legit.ng
