The Nigerian Communications Commission (NCC) is taking a decisive regulatory move to ensure sustainability, profitability and fair competition in the Special Numbering Service (SNS) segment of the nation’s telecommunications sector.

This move informed the decision of the Commission to hold a Stakeholders’ Forum on the ‘Determination of Call Termination Rate for Special Numbering Service Providers in Nigeria. ‘

The forum, held at the Conference Room, NCC Head Office in Abuja on Tuesday, November 16, 2021, was well attended by representatives of Mobile Network Operators (MNOs), Special Numbering Service (SNS) providers and other stakeholders who participated actively in the discussions.

Addressing the gathering, the Director, Policy, Competition and Economic Analysis at NCC, Yetunde Akinloye, said the meeting was convened following the extensive work of a committee set up by the Commission to look into the issues and complaints emanating from the SNS segment of the telecoms market. A key concern according to her, was the perception of high cost of delivering services to end-users in the SNS segment.

Accordingly, Akinloye stated that, “This meeting is convened to discuss issues pertaining to the special numbering services (SNS) segment of the Nigerian telecommunications market.

Statutorily,  the NCC is the custodian and manager of the toll-free and non-toll-free numbers licenses, on behalf of the Federal Government of Nigeria”, she said.

She explained that owing to the scarce and finite nature of the numbers in the sector, the NCC, as the regulator, was under obligation to ensure the utilisation of the numbers by the licensees in a way that delivers value to the final consumers and ensures sustainability of the industry.

“The SNS has been in existence for the past 15 years, with some licensees actively engaged in the segment. However, we have noted some observations and complaints from different quarters on the use of these numbers. We have observed, for instance, that there has been no effective utilisation of the numbers” she said.

Akinloye also said the Commission had observed that the uptake of the numbers has been abysmally poor, contrary to NCC’s expectation as the sectoral regulator. She stated that NCC has also received complaints from the licensees regarding the perceived high rates aand charges by Mobile Network Operators (MNOs) who are  owners of the major infrastructure being used by SNS providers to deliver services to end users.

According to her, based on this, the NCC set up a committee to do a thorough review of the market segment; research similar markets in other jurisdiction for benchmarking; and determine the appropriate call termination rates, through proper investigation, consultation and stakeholder engagements.

She said the Committee had done extensive work in this regard and as part of its rule-making process and regulatory transparency, the NCC has organised the consultative forum “to share outcomes of the Committee’s findings with the licensees, discuss the regulatory interventions that need to be taken and get inputs from all MNOs, SNS providers and other relevant stakeholders.”

Also speaking during the meeting, Director, Technical Standards and Network Integrity, NCC, Bako Wakil, lamented that the SNS segment of the market has not been fully maximised because of the cost elements involved.

However, Wakil said, if cost can be reduced, there will be greater benefits from economies of scale. “So, there has to be a way of making people use the service more if the price is appropriate. In the last 15 years of introducing SNS providers, there are less than 3,000 people using the service and yet, we have licensed additional number of players in the segment. Therefore, we are looking at profitability, sustainability and vibrancy of the Value-Added Service segment,” he said.

After taking inputs from representatives of MNOs and SNS providers at the forum, a new date was fixed for the second phase of the stakeholders’ forum at which more contributions will be taken to enrich the quality of decisions in that regard.

While the second meeting of the Forum has been scheduled to take place in Lagos on 14th December 2021, the NCC has urged stakeholders to submit additional inputs and send to the Commission by November 30, 2021 for timely assessment and collation before the second meeting.

International Fraud Awareness Week is taking place from 14-20 November, highlighting an increasing problem that organisations around the world are facing. According to the Association of Certified Fraud Examiners (ACFE), businesses lose around 5% of their annual revenue globally due to fraudulent behaviour, which experts estimate amounts to a total annual loss around the world of $3.7 trillion.

Fraud can hit organisations from various angles, and even though cybercrime and external fraud attacks are a huge risk, more often than many companies realise it is perpetrated from within. In fact, the Global Economic Crime and Fraud Survey showed that 41% of economic crimes in South Africa were committed by employees, compared to only 36% by external fraudsters and 21% a collusion between the two.

Ryan Mer, Managing Director, eftsure Africa, a Know Your Payee (KYP) platform provider says it is crucial to be alert to fraudulent activity within your organisation and to catch it as early as possible. To do this, you need to understand what drives employees to engage in fraud. “From our experience and conversations with clients when assisting those who have dealt with fraud internally, employees do not set out to defraud a company and it is usually someone who has been with the company for some time and someone who is seen as unlikely to participate in criminal activity.”

Criminologist Donald Cressey published a model called the ‘fraud triangle’, which outlines the three factors that can cause employees to commit occupational fraud: motivation, opportunity and rationalisation. When an employee has a reason for committing fraud, gets a chance to do so without getting caught, and can come up with a justification for their behaviour, they’re more likely to commit an occupational crime. “The past two years of COVID-19 lockdowns have negatively impacted household finances, providing ample motivation and justification for committing fraud. In the minds of many, desperate times call for desperate measures. Organisations need to be cognisant of this and act accordingly,” advises Mer.

Some of the warning signs exhibited by employees that may indicate fraudulent behaviour include:

Living beyond their means. Look out for employees who exhibit a drastic change in lifestyle, suddenly arriving at work in an expensive car, flashing designer gear and boasting about new real estate acquisitions with no real reason for the change.

Guarding their turf. A fraudster won’t want to share their duties and may resist taking holidays so nobody can step in for them.

Have unusually close relationships with a vendor or customer. This allows the fraudster the opportunity create fictitious orders or receive kickbacks. Be on guard if a supplier insists on dealing with one specific employee.

Working long hours. An employee who comes in early, stays late, works on weekends and does not take sick or annual leave are all red flags. This could indicate that the employee does not want to share their responsibilities with other employees who may detect fraudulent acts.

Working in a position to commit fraud. Positions that involve administering payments to creditors and suppliers, overseeing and processing invoices and electronic payments, and capturing bank statement transactions present a higher risk for businesses. Fraud can be committed by changing the banking details of suppliers, especially ad hoc suppliers, and adding fictitious suppliers or employees onto the payroll.

How to prevent fraud

By looking at the three factors in the ‘fraud triangle’ mentioned above, business owners can help to prevent employees from resorting to fraud.

Relieve the pressure. Remove the motivation to participate in fraudulent behaviour by showing empathy for your employees and offering the support they need in good times and in bad.

Remove the opportunity. Tighten up your accounting policies and ensure strong internal controls to prevent payments fraud. A common thread in cases of fraud is the human element. A Software as a Service (SaaS) provider like eftsure can help limit these risks by providing an integrated payments platform that provides organisations with the ability to digitise and automate the verification of payees and eft payment data, on a continuous basis through its KYP technology.

Deal with rationalisation. Don’t give employees the chance to justify fraudulent behaviour. Develop a transparent and collaborative approach to business that treats employees fairly. This way you’re less likely to have disgruntled employees more likely to get involved in fraudulent behaviour.

In the current economic climate, employees may be more tempted to perpetrate fraud, making it vital for organisations to implement best practice anti-fraud strategies. “People combined with technology and sound business processes are at the frontline of fighting fraud and mitigating risk. By building a culture of security within an organisation that ensures cooperation between employees and technology, it is significantly more difficult for employees to commit white-collar crime,” says Mer.