By Suleiman Bala Bakori

Boxes have a multitude of uses, and the word “box,” lends itself to diverse contexts. For “Ajala Travelers,” the box is a necessity for keeping goods for their endless journeys. In literature, idiomatically, it can be said that “one has been boxed into a corner;” another might say to deal with a conundrum: “think outside the box;” then there is the “Pandora’s box” that no one wants opened. To “box one’s ear’s” refers to a hit on the head, especially around one’s ears. For those who celebrate Christmas, “Boxing Day,” which is the 26th of December, the second day of Christmastide is not to be joked with: A day to unbox gifts. So much for the box.

Another type of box exists in the telecommunications world: The SIM Box. Have you ever received an international call but saw a local phone number ring in? That is SIM Boxing in action. Let me explain.

SIM boxing happens when a person uses a special equipment, what is called a SIM Box containing tens to hundreds of SIM Cards—from 32, to 96, to 512 and more SIMs —to terminate international calls by bringing in the international call into the SIM Box using internet connections and regenerating the calls to the called party from one of the hundred SIMs in the box. This way, the called party will see the local number of the SIM from the SIM Box, and not the original international number calling.

With SIM Boxes, the syndicate charges international call carriers lower rates than what regular Nigerian telecommunications operators would charge, as they do not have to pay the full cost of maintaining and operating a phone network. Basically, they are bypassing the normal route for international phone call termination to terminate international calls cheaply and making windfall profits off it.

Take for instance, a telecommunications operator in Nigeria would ordinarily charge international carriers 10cents per minute for terminating an international call in Nigeria. However, by routing the call through a SIM Boxing syndicate, the international telecommunications carrier only pays a fraction of the charge to the syndicate, say 5cents per minute and does not have to pay the full 10cents per minute charge.

The SIM Boxer will terminate this call to the called subscriber at a rate of, say N15 per minute using one of the SIM cards in their SIM Box. The SIM Boxer thus makes a killing from the differential between the rate charged to the international carrier and the rate paid to telecommunications operators whose SIM they utilise in their SIM Boxes, at the expense of our national security and income of mobile network operators and quality of our service to consumers.

Asides the revenue loss that local mobile network operators suffer courtesy the activities of these syndicates, networks face congestion around areas where the illegal call routings via SIM Boxing occurs. With the huge traffic from the boxes, callers around the area see more dropped calls, poor call quality, and slower data speeds.

The introduction of the linking of National Identity Numbers (NIN) to SIMs is one way the Federal Government has worked to tackle this criminal enterprise. With every SIM in the country being linked to an NIN, an identity is tied to the owner of each line, and regulators now have visibility of ownership. That is not all. There is also the “Max-4 Rule” where a subscriber is not allowed to have more than four lines per network operator linked to his NIN. With this rule in place, coupled with the NIN-SIM Linkage, every telephone subscriber in Nigeria would not just be accurately identifiable but limited to having only four telephone lines per subscriber.

To enforce this rule, the Nigerian Communications Commission (NCC) on the 29th of March 2024 announced the deadline for Mobile Network Operators to bar all subscribers who had five lines and above, and whose NIN failed the verification test of biometrics matching.

Over the last few weeks, sources within the NCC have confirmed cases where a single NIN was linked to over 100,000 lines. Some NINs had well over 10,000 SIMS linked to them, others over a thousand, others had hundreds. Many have questioned the reports and asked, what would any single reasonable person be doing with these number of lines? Justifiable questions, because no sane person—who is not running a business—should own more than five SIM cards.

Given the ‘Max 4 Rule’ in place and the NIN-SIM Linkage Policy, SIM Boxers have been boxed into a corner. The applications they use require tens to thousands of SIM Cards, and the imperative to stay anonymous. If these policies are well and fully implemented, this is the death knell for SIM Boxing merchants.

But the regulator, NCC, needs to be fast and ready for the battle ahead. SIM Boxing is a billion-dollar criminal enterprise. They are not going to go down without a fight. It is like taking a bone being chewed from the mouth of a bulldog.

Already, the battle seems to have kicked off. A lawyer, Barrister Olukoya Ogunbeje has recently taken the Federal Government, NCC and Mobile Network Operators to court, claiming that the barring of SIMs not linked to NINs goes against his fundamental human rights, and has cost him the loss of business opportunities. Anyone who has Nigeria’s interest at heart ordinarily supports this policy. It then does not add up seeing a so-called activist lawyer take up such a matter that is clearly against the public interest—unless this is the Haka cry of SIM Boxers.

A most interesting observation with his case is that it is not even a class action, but individually driven. It begs the question then, who is funding Barr. Olukoya Ogungbeje? What is his interest in fighting this policy that puts paid to the business of a criminal enterprise? Is he funded by interests in the SIM Boxing world? Time would tell. But in the meantime, NCC must go head on without fear or intimation and clean the Augean stable of SIM ownership in Nigeria.

Suleiman Bala Bakori is a researcher, and writes from the FCT.

By Constantine ‘Labi Ogunbiyi

The African continent stands at a pivotal juncture in the global energy sector, with abundant oil and gas reserves offering immense potential for economic growth. However, while the continent holds significant promise, navigating the upstream oil and gas sector in Africa comes with a plethora of risks and potential setbacks that demand careful consideration and strategic planning. This is against a backdrop of cutbacks in international capital for carbon-intensive oil and gas developments and increasing competition for the same sources of capital. Innovative financing solutions are thus required to fill the void, but can only be truly successful if tailored to specific needs and adopted and respected by all stakeholders.

Nigeria, Africa’s largest oil producer, epitomises the complexities and opportunities within the continent’s energy sector. Over the past decade, the Nigerian oil and gas industry has grappled with insecurity, asset vandalism, and community unrest, leading to a decline in investment. This coupled with the need for the sanctity of contracts and a properly structured fiscal framework has seen investment in the sector decline to about US$5 billion per annum from highs of about US$22 billion per annum in 2012.

Nigeria has an abundance of unexploited discovered natural gas (as well as significant prospective gas resources), now heralded as a “clean” transition fuel amidst global energy shifts. Nigeria should seek to attract significant investment during this transition era (which has also seen crude oil prices rebound) to take full advantage of this, thus retaining the value of crude oil and gas resources to enable it to position itself for its energy transition (towards net zero) agenda. A just energy transition, the paradigm that gained impetus at the December 2023 COP28 Conference, is intended to decelerate financing fossil fuel developments while supporting those most vulnerable to the impacts of climate change when facilitating the transition to clean energy. This is not simply a tweak to existing systems; it is a fundamental transformation towards a cleaner, more sustainable future. This shift is driven by environmental concerns, the changing balance of power on the global stage, and awareness that the energy-producing nations in the Global South (which produce only a fraction of global emissions) should be given a chance to “catch up” industrially, technological advancement as consumer demands. It is estimated that the country needs about US$25 billion of annual investment in the next 10 years to achieve crude oil output of three to four million barrels per day and 3 bcf per day of gas production for domestic consumption (an ambition). A lack of available infrastructure, whether because of existing compromised infrastructure through age or sabotage or simply a lack of new investment, and competition for capital regionally, poses challenges that will need to be overcome to achieve this. Inadequate infrastructure impedes the development and operation of oil and gas projects in Africa, increases project costs, delays timelines, and heightens operational risks.

The new Government has declared that it is “open for business” and will take urgent steps towards solving the fiscal, regulatory, security, and other issues discouraging investment and operations in the nation’s petroleum sector – something that is urgently required to help to push its oil and gas production to the ambitious levels being targeted. The mechanisms are in place – the Petroleum Industry Act (PIA) has done a lot to bring an enabling framework to the industry, including by allowing the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries to raise capital on their own balance sheets, whether by divestitures or development partnerships on their blocks (including risk service contracts, financial and technical service agreements and the likes), crude forward sales, debt or equity capital raisings, etc. Still, there is a need to focus more on implementing the PIA in a manner that restores investors’ confidence and boosts oil and gas production, ultimately increasing jobs, the country’s earnings, and prosperity. Whilst international commodity traders have increased their activity and funding of oil production in Nigeria, they rarely support the development of appraisal and near-production assets. Access to innovative capital structures for such capital-intensive projects, involving a more risk-reward approach will be key to developing such assets, as will the deepening of regional capital markets to bolster the capital available from institutions such as the African Export-Import Bank and planned new initiatives such as the African Energy Bank. Effectively, more “home-grown” solutions will be required.

As international oil companies shift focus to deep offshore and gas-rich assets, indigenous companies and smaller operators are stepping in to fill the void. However, accessing capital remains challenging. Innovative financing models, such as the contractor risk service  model, offer a promising solution. This model, which involves contractors taking financial risks and receiving payment from production, incentivizes efficient asset development while mitigating risk for owners and operators.

The contractor taking such risk, is effectively a co-financier of, and investor in, the development of the oil block – ensuring a service that would otherwise require immediate payment, to benefit from payment from oil and gas production (therein lies the contractor risk).

The success of such models hinges on the support of all stakeholders, including operators, joint venture partners, financiers, regulatory authorities, and local communities. By aligning incentives and sharing risks, these partnerships can drive sustainable development and enhance investor returns. The recent completion of the FSO ELI Akaso infrastructure project by the Century Group (CG) (part of an alternative crude oil evacuation system (ACOES)), facilitated by the contractor risk service model, exemplifies the potential for collaboration to unlock value and foster growth. The ACOES is being developed as a result of the need to enhance production and supply security from oil blocks in the Eastern Niger Delta due to infractions and prolonged outages of the Nembe Creek Trunkline (historically one of Nigeria’s major oil transportation arteries evacuating up to 150,000 bopd of crude from the Niger Delta to the Atlantic coast for export). The CG model is “Made-in-Nigeria-for-Nigeria” but can be rolled out regionally (and globally too), in countries where access to capital for oil and gas developments is tough. Contractors work in a vacuum: the aim of which is to optimise oil production to ensure that their clients thrive so that they do too. However, they rarely take financial and production risk executing a “pay-as-you-go” model (often including mobilisation and other hefty prepayment-type fees), which can leave operators hanging where assets under-perform. They also get the job done without involving themselves in the issues that may affect joint venture partner relationships.

Local and international investors, including UK-listed San Leon Energy plc, World Carrier Corporation, and GT Bank plc have invested heavily in Energy Link Infrastructure Limited (ELI), the sponsor of the ACOES and owner of the FSO ELI Akaso and relevant pipeline infrastructure to develop the ACOES. With the advent of COVID and a lack of production available from anchor clients, ELI needed to look for alternative sources of capital to ensure that the FSO ELI Akaso is ready for operations. Without CG’s involvement in a contractor risk service model, the FSO would not be operationally ready and now established as a terminal for oil export. As the Akaso starts to take on barrels from various oil producers, the business should thrive. CG, as an investor by the application of its contractor risk service model, should also be rewarded and feted for having stood by the business at a time when access to alternative capital was proving difficult. With the success of this approach, CG is ensuring that the contractor risk service model should be considered by the industry as an alternative, proactive, and additional funding source for the development of energy projects.

Looking ahead, achieving sustainable development in Africa’s oil and gas sector demands collaborative action from all stakeholders. Local investors, operators, and contractors play a crucial role in de-risking opportunities and crafting an appealing investment narrative that attracts capital. By leveraging local expertise and fostering partnerships, these stakeholders can unlock the sector’s full potential while mitigating risks. Regulatory frameworks also play a pivotal role in shaping the investment landscape. It is imperative that these frameworks prioritize ease of doing business and uphold contract sanctity to instil confidence among investors. Additionally, addressing bottlenecks to investment and exits is critical for maintaining investor interest and sustaining growth momentum. Addressing the need to resolve the long-standing saga and delay in the consummation of the $1.3 billion ExxonMobil sale of its 40% stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Nigeria Plc, the Nigerian Minister of State for Petroleum Resources, Heineken Lokpobiri said on 16th April 2024: “Now that the whole world is campaigning against investment in fossil fuel, if we close this transaction and Seplat expands their investments, Bonga North, which is predicated on that resolution, comes on board, and the whole world will know that Nigeria has become a new investment destination and that is the objective of this government.”

In charting the course for Africa’s upstream oil and gas industry, daring innovations and strategic partnerships will be indispensable. By embracing risk and seizing opportunities, the continent can harness its energy potential to drive economic prosperity and sustainable development for generations to come. More local investors, operators and contractors (like Century Group) will need to step up to help to de-risk opportunities and ensure the investment narrative is attractive, properly articulated and understood. With traditional international financing techniques becoming more difficult to secure for oil and gas projects, the contractor risk service model is an invaluable additional tool to ensure the continuing development of energy projects.

About the Author

Constantine ‘Labi Ogunbiyi has been involved in the energy (including renewables), fintech, and logistics sectors as an investor, Strategic Advisor, and/or Director on several boards. He has more than twenty-five years of experience in international capital markets, private equity, acquisition, structured, trade and project finance, and public and private partnerships in the African energy, technology, and infrastructure sectors, in particular. Labi,  was a founder and Executive Director of Afren plc responsible for business development, strategy, and growth, leading Afren’s negotiating team in Nigerian acquisitions and equity and debt financings (capital raising of more than $1.7 billion) between 2005 and 2009. In 2009, he founded First Hydrocarbon Nigeria Limited (FHN), a leading indigenous upstream oil and gas exploration and production company in Nigeria, and functioned as its Chief Executive Officer, selling the business in 2013.

Presently, he runs his family office, Phoenix Generation Limited, a direct investment and strategic investment advisory service company. He holds Legal Qualifications from the Universities of London (King’s College), Passau (Germany), and the Oxford Institute of Legal Practice.

By Bolanle Bolawole

To begin with, let me ask whether you knew that abusing the Naira is a worse offence than stealing or embezzling the Naira? You can steal billions of Naira and walk away free. But abuse the Naira and end up in jail with automatic alacrity! Worse still, you can leverage the riches so suddenly acquired to contest election into high office and become anything – president, vice president, governor, senator, honourable – just anything!

Only a few persons in high office in this country today do not fall into this category. When you steal so much, you intimidate the authorities; the anti-corruption agencies negotiate with you; the courts respect you and the populace worship you. Spiritual leaders grovel for a piece of the cake. Crumbs from your table ensure that the masses flock to you and do your bidding.

An uncountable number of our leaders have corruption allegations and cases running for years hanging around their neck. In the interim, they walk the street; stand for election, win and are, today, “their excellencies” “distinguished” and “honourables” This is very much unlike the automatic alacrity with which Bobrisky was sent to jail and the Cubana Chief Priest was hauled before the court on charges of abusing the Naira.

The seriousness with which the authorities now pursue selective cases of abuse of the Naira suggests that this offence destroys the economy and impacts Nigerians more negatively than the stealing of humongous sums from the country’s coffers. This is quite unfortunate as it smacks of a deliberate diversionary tactic to shift the people’s attention from more serious matters.

Someone said Bobrisky quickly went to jail maybe because his lawyers were B.Sc. in Law lawyers! Were they the ones who advised him to plead guilty, thinking that would earn him pity and soft-landing? He was like a person that enemies wanted to roast alive who now doused himself with petrol and stood before the fireplace. The Cubana Chief Priest must have learned lessons from Bobrisky’s error. Maybe his lawyers had authentic LLB. Law! If you know, kindly tell me why the Dunamis pastor apologised to the lady who bagged B.Sc. Law degree from NOUN!

While Bobrisky cools his feet in jail, the Cubana Chief Priest roams freely, having been admitted to bail, which was denied to Bobrisky. Because he pleaded not guilty, the Cubana Chief Priest is considered innocent until the contrary is proven; unlike Bobrisky who pleaded guilty from Day One and the judge only had to fix a date to sentence him – and the sentence pronounced was harsh, in my view.

Bobrisky’s lawyers appeared lazy. I will love to see how the Cubana Chief Priest and his lawyers tackle the prosecution. What is the evidence that the person caught on video abusing the Naira was the accused and not a look-alike? Remember the drug-related charges that dogged the steps of Kashamu Buruji until his death. How are they sure that what was abused was real Naira and not fake, look-alike Naira? Will exhibits be presented in court, with serial numbers to boot? What if rats or snakes – or even monkeys! – are later announced to have devoured the exhibits? Will electronic evidence (a relatively new source of evidence) suffice in this case? In a democracy, there is the need to stretch the law to its elasticity level and not take anything for granted.

 I love the song “apostle must to hear this” by portable but warn him not to fall into the same pit as Bobrisky. I will loan him the wisdom of the elders as Grandma told me. There was a wicked king in one town and people only murmured behind his back as none could summon the courage to confront him. One day two friends bared their minds about this wicked king in a gathering of friends. Unknown to them, one “amebo” carried the tale to the Kabiyesi. Pronto, he sent messengers to bring the twosome to his palace. Everyone knew what the outcome would be.

So, one of the friends went into his inner chambers and behaved like a man, as they say. He committed suicide rather than stand the indignity he would be subjected to before being beheaded at the palace. So, only one offender was hauled before the king, who was surprised to see that he did not committed suicide like his friend. “Coward,” the king yelled at him. “Why did you not summon the same courage as your friend?” The king was surprised at the response he got: “Only cowards die before they see the death that would kill them!” But I digress!

One day late into the night some years back, we were unwinding in the Dining Room of a governor, as was our practice, when his phone rang and the person on the other end was frantic. It was an SOS to His Excellency by the apostle, who was in the state for a three-day crusade, to come to the rescue. It was a “Come to Macedonia and help us” kind of shrill cry. The Man of God said his hotel had been surrounded by security operatives from Abuja and were banging on his door, threatening to pull it down if he failed to open it.

His Excellency, an action governor, immediately sprang to action; mobilised his security aides and all of us headed for the hotel. His Excellency, commando-style, stormed the hotel, yelling and stomping: How dare you! You want to create a crisis in my state? How dare you invade my state without my knowledge? Not even the courtesy to put me in the know? I am the chief security officer of this state! Ad infinitum!

As His Excellency was raking, he was pushing his way towards the apostle’s room. The security operatives from Abuja were taken aback. They were armed to the teeth. The governor’s security aides were also armed. Thank God there was no shoot-out between the two opposing groups. What would have become of “bloody civilians” like me? The governor got to the apostle’s room, wrapped his arm around him, led him down the stairs, and hauled him into his official car and we drove away, straight to the Government House.

That was my first time seeing the Apostle Suleman. Was the governor’s action right? Yes, I think it was, but was it dangerous? Yes, it was! What if a shoot-out had occurred? But why should security agents storm a state without the knowledge of the governor who is touted by the country’s Constitution as the chief security officer of the state? This is one area of the 1999 Constitution (as amended) that needs further amendment.

If we can excuse what the governor in question here did to rescue Apostle Suleman, can we in like manner justify what the Governor of Kogi state did to smuggle his erstwhile boss, Yahaya Bello, from EFCC’s net as is being alleged? I do not think the Kogi governor did the right thing. So also do I not think Yahaya Bello himself did the right thing trying to run away from the law. How far can he run? And for how long will he hide? Has he not made his case worse now that he has been declared wanted by the EFCC?

For how long can the incumbent Kogi governor provide his political godfather a safe haven? If Yahaya Bello is innocent, why is he running? Has it not been said that a clear conscience fears no foe? After all his grandstanding, why is Yahaya Bello now developing cold feet? Why is he now hiding under the cover-cloth of his successor? Again, for how long will he do this?

 In 2018, the then Ekiti state governor, Ayo Fayose, was taunted by the EFCC: that his immunity would soon expire as his tenure expires; that he would be hauled before the court; and that he would rot in jail! Fayose told them he was not on the run but would turn himself over to the EFCC – all by himself. Fayose was man enough to honour his words. He went to the EFCC office in Abuja by himself. I was one of those who followed him there. He was detained by them. He was charged to court and was remanded  at the Ikoyi prison for a while. I visited him there. When the case began, I followed him to court on a countless number of occasions. Fayose defended himself. The case is still on but Fayose is not in hiding like Yahaya Bello has now done. He did not run from the law. Fayose was outspoken but not lousy like Yahaya Bello.

Yahaya Bello has been declared wanted. That is the right thing to do but that is not all. If it is true that the Kogi state governor was the one who, hiding under the cloak of immunity, shielded him from arrest by the EFCC, then, that is a serious matter. The Kogi state governor, in so doing, has shown that he is not fit for the high office he occupies. He has to be removed by all means possible.  Was that not the same man who prostrated before Yahaya Bello after the Kogi governorship election? What, then, should we expect? What a shame! If removing the Kogi state governor is what must be done to gain access to Yahaya Bello, so be it! This is one of those rare occasions that you regret that Olusegun Obasanjo is not the president!

Then, the security aides that the Kogi State governor used to frustrate the EFCC must be sanctioned. We have had too many cases of security officials acting unprofessionally and at cross-purposes in a way that does them little or no credit. An end must be put to this. There is also the embarrassment of judges giving conflicting orders that make a mockery of the judiciary. What is the function of the NJC in this regard?

Importantly, the time is now to review the immunity clause in the Constitution; either we totally remove it or we strip it of its omnibus status. The spirit and letters of the immunity law aim at allowing those enjoying it the opportunity to focus on the task of governance without distraction but now that it has become an instrument for criminality, something must be done about it.

We used to give ourselves the consolation that presidents and governors, the clan that enjoys immunity, have expiry date, after which they can then be called to account, but with the Yahaya Bello incidence where spirited efforts are being made to still cover the former governor with the borrowed cloak of immunity belonging to his successor, then, this has become a serious matter that we can no longer gloss over.

Do not think sitting and former governors are not watching. If Yahaya Bello gets away with this, then, it will very soon become the order of the day all over the country.

Bolawole is a former Editor of PUNCH newspapers and also a public affairs analyst on radio and television.