The Nigerian Communications Commission (NCC) is pleased to announce significant progress in the Federal Government’s 2020 policy to link all Subscriber Identification Modules (SIMs) to National Identity Numbers (NINs). To date, over 153 million SIMs have been successfully linked to a NIN, reflecting an impressive compliance rate of 96 per cent, a substantial increase from 69.7 per cent in January 2024.
As we approach the final phase of this critical process, the NCC seeks the continued cooperation of all Nigerians to achieve 100 per cent compliance. The complete linkage of all SIM cards to NINs is essential for enhancing the trust and security of our digital economy.
By verifying all mobile users, this policy strengthens confidence in digital transactions, reduces the risk of fraud and cybercrime, and supports greater participation in e-commerce, digital banking, and mobile money services. This, in turn, promotes financial inclusion and drives economic growth.
Through collaboration with the Office of the National Security Adviser (ONSA) and the National Identity Management Commission (NIMC), the NCC has uncovered alarming cases where individuals possessed an unusually high number of SIM cards—some exceeding 100,000. The Commission also remains committed to working with security agencies and other stakeholders to crack down on the sale of pre-registered SIMs, thereby safeguarding national security and ensuring the integrity of mobile numbers in Nigeria.
To ensure full compliance with the NIN-SIM linkage policy, the NCC has directed all Mobile Network Operators (MNOs) to complete the mandatory verification and linkage of SIMs to NINs by September 14, 2024.
Effective September 15, 2024, the Commission expects that no SIM operating in Nigeria will be without a valid NIN.
We urge all members of the public who have not yet completed their NIN-SIM linkage, or who have faced issues due to verification mismatches, to visit their service providers promptly to update their details before the deadline. Alternatively, the approved self-service portals are available for this purpose.
The NCC also reminds the public that the sale and purchase of pre-registered SIMs are criminal offences punishable by imprisonment and fines. We encourage citizens to report any such activities to the Commission via our toll-free line (622) or through our social media platforms.
The Commission thanks the general public for its continued cooperation as we work together to strengthen Nigeria’s digital ecosystem.
LNG exports from West Africa to Europe are making up a bigger share of volumes in August despite favorable arbitrage economics to Northeast Asia, because of relatively cheaper shipping costs and lower oil-linked contract prices to the Continent, according to traders and S&P Global Commodity Insights data.
Register Now West African LNG exports reached 930,000 metric tons, or 13 cargoes, in August as of the 25th, Commodity Insights data showed.
According to analyses carried out by S&P Global Commodity Insights, of the total, nearly 37% was exported to Europe, followed by about 23% to the Middle East and North Africa region and almost 9% to North America. The rest was yet to be nominated.
This compares with 1.07 million metric tons, or 16 cargoes, during the same period in July, with 56% of the volume exported to Asia, followed by 25% to the MENA region and nearly 19% to Europe.
During the same period in August 2023, about 810,000 metric tons, or 12 cargoes, were exported by Nigeria, with 74% going to Europe, 19% to North America and the rest to Asia.
Arbitrage economics
Arbitrage economics out of Nigeria to Northeast Asia are stronger than delivering cargoes to Europe.
The East-West arbitrage window for LNG cargoes loading from West Africa is open. The first-half October JKM to second-half September Northwest Europe spread considering freight rates from West Africa to North Asia and NWE strengthened to 25.2 cents/MMBtu on Aug. 23, from a negative 27.6 cents/MMBtu and a negative $3.442/MMBtu, respectively, in 2023 and 2022 as of Aug. 23, Platts data showed. The spread, however, narrowed on the session by 4.5 cents/MMBtu. Platts is part of Commodity Insights.
Nigerian freight rates to NWE were lower at 98 cents/MMBtu as of Aug. 23, against $2.19/MMBtu to Japan/South Korea, according to Platts data.
Platts assessed JKM — the benchmark price for delivering cargoes into Northeast Asia — at a premium against the NWE marker of $1.241/MMBtu.
This compares with the JKM-NWE differential of $1.712/MMBtu as of Aug. 23, 2023, when more exports were headed for Asia, and 84.2 cents/MMBtu as of the same date in 2022, when more exports landed in Europe than Asia.
A trader said that, despite the DES price difference between Asia and Europe, limited shipping availability allows them to send cargoes to Europe and share the margins between buyer and seller.
“There is a difference in the freight available for the Atlantic versus the two bases [Atlantic and Pacific] where the difference is $20,000-$40,000/d,” the trader said.
Lower oil-linked contract prices
More bullish sentiment in the European gas complex and underlying concerns about vulnerability to supply-side shocks have pushed spot LNG prices “out of the money” against oil-indexed contract volumes.
Term LNG contracts, especially older ones, have tended to have an element that is priced as a percentage of crude oil, known as the “slope”, which can vary depending on the prevailing market conditions. Typically the lower and upper bounds of the slope are between 11% in a bearish LNG market and 20% in a bullish market; when the market is balanced it will be 12% to 13%.
Oil-linked contracts are currently around a 12% to 13.5% slope versus Dated Brent across Europe and Asia, trade sources said. Meanwhile, Nigerian oil-linked contracts are usually at a lower slope plus a constant.
Considering the highest Nigerian oil-linked contract of about 9% of Dated Brent plus a constant of 2.01, it equates to around $9.306/MMBtu, Platts data showed. This puts JKM at a premium of $4.137/MMBtu versus the contract price and NWE at a premium of $2.896/MMBtu.
Of the total Nigerian LNG exports so far in August, the largest recipient has been Portugal, accounting for nearly 23% of the exported volume.
“[Portugal’s] Galp Nigerian LNG supply may be advantaged given the contracts were signed at a time of low oil slopes,” Domitille Lainey, associate director, and David Lewis, LNG analyst, at Commodity Insights said.
