How to bridge Nigeria’s identification gap

Nigeria's Ministry of Communications and Digital Economy has been making strides in closing the identification gap in the country, with about 56.2 million national identification numbers now linked to mobile SIM cards. This renewed effort to streamline identification processes has seen positive outcomes, but there is still work to be done in bringing more Nigerians into the system. Esigie Aguele, CEO of VerifyMe, shed light on the role of the private sector in driving Nigeria's identification agenda in a recent interview with CNBC Africa. Aguele pointed out that while progress has been made, there is still a significant number of SIM cards that need to be linked to identification numbers. With a population of 277 million Nigerians and approximately 190 million active SIM cards in circulation, there is a gap of an estimated 60 to 17 million SIM cards that still require linking. This underscores the importance of continuing the drive to achieve full coverage. The involvement of the private sector has proved to be instrumental in the identification process. By leveraging the expertise and reach of private organizations, such as telecom companies, the government has been able to expand its registration ecosystem to reach even the most remote areas. While some have raised concerns about data integrity, Aguele emphasized that with the right regulations and enforcement in place, the private sector can be a valuable partner in ensuring compliance with data privacy protection and anti-money laundering directives. The harmonization of data from various government agencies is a key focus of the identification agenda. By linking different identification numbers to the national ID, the government aims to create a seamless system where various IDs, such as bank verification numbers and driver's license numbers, can be linked to a foundational identity. Through regulation and enforcement, this harmonization process is expected to close the existing gaps and ensure that access to essential services is contingent on having a national ID. The COVID-19 pandemic has presented both challenges and opportunities for Nigeria's identification drive. The economic slowdown caused by the pandemic highlighted the importance of having trusted digital identities for financial inclusion. While the informal sector suffered significant losses, there was a spike in digitalization and remote services, leading to increased transactions and growth in sectors like Fintech. Companies like VerifyMe saw a surge in customers and transactions, indicating the potential for further expansion in the digital identity space. Looking ahead, the full realization of Nigeria's digital identity potential could have profound implications for the economy. With trusted digital identities, financial institutions would be better positioned to provide loans and services to a broader segment of the population, potentially unlocking opportunities in sectors like housing and employment. The ripple effect of digitization could lead to job creation, revenue generation, and greater government sustainability in the long term. In conclusion, the drive to close Nigeria's identification gap is a collaborative effort that requires the active participation of both the public and private sectors. By harnessing the power of digital identities, Nigeria stands to benefit from increased financial inclusion, economic growth, and job creation. As the country continues on this path, the importance of robust regulations and enforcement mechanisms cannot be overstated in ensuring data integrity and compliance with international standards.