NIMC Probes Fintechs for 167% Markup in NIN Purchases from Fraudsters

The National Identity Management Commission (NIMC) has launched a high-stakes investigation into allegations that fintech firms are purchasing Nigerians’ national identification numbers (NINs) from fraudsters for up to N5,000, deepening concerns about data security in the country’s digital financial ecosystem [1]. According to a press release signed by Kayode Adegoke, NIMC’s Head of Corporate Communications, fraudsters are exploiting financially vulnerable individuals—primarily young Nigerians—by offering payments of N1,500 to N2,000 in exchange for their personal information and NINs. These details are then resold to fintech institutions at a markup of 167%, highlighting a systemic vulnerability in identity verification processes [1].

The NIMC’s warning follows a report from the Economic and Financial Crime Commission (EFCC), which flagged the fraud as a growing threat fueled by unscrupulous actors leveraging economic hardship to traffic sensitive data [1]. The commission emphasized that individuals who sell their NINs do so at significant risk, as compromised identities can be used for fraudulent activities ranging from unauthorized financial transactions to identity theft. “Nigerians have been repeatedly cautioned not to disclose their NIN to unauthorized entities,” the NIMC statement underscored, adding that it will not be held liable for misuse of information shared for financial gain [1].

The scandal underscores the tension between rapid fintech expansion and regulatory oversight. Fintech companies, which rely on NIN-linked biometric data for Know Your Customer (KYC) compliance, face reputational and operational risks if their systems are exploited by bad actors. The NIMC’s revelations also expose gaps in the enforcement of digital identity laws, as the commission called for stricter collaboration between regulators and financial institutions to trace and penalize complicit entities. However, the opaque process of linking NINs to financial accounts complicates accountability, leaving room for exploitation.

To mitigate risks, the NIMC has promoted its NINAuth platform—a digital tool launched in May 2025 to enable users to control access to their personal information and verify identities across government services. The system, now mandatory for verification in ministries and agencies, aims to reduce fraudulent transactions by empowering individuals to monitor and restrict NIN usage [1]. Despite these measures, the proliferation of counterfeit NIN portals, such as NINcard.com, illustrates the scale of cybercrime targeting Nigeria’s digital infrastructure. The commission has explicitly distanced itself from such platforms, warning the public against engaging with unverified services [1].

Analysts note that the fraud reflects broader trends in Nigeria’s cybercrime landscape, where identity theft has become a lucrative enterprise. The NIMC’s intervention, while critical, raises questions about the adequacy of existing safeguards. With over 120 million NINs registered and a target of 200 million by December 2025, the potential for systemic breaches is substantial. Smaller fintech platforms, in particular, may lack the resources to implement rigorous due diligence, creating entry points for bad actors.

The NIMC’s crackdown also highlights the ethical and financial implications of monetizing personal data. While fintech innovation has expanded financial inclusion, the commodification of identities risks eroding trust in digital systems. The commission’s call for inter-agency cooperation and real-time monitoring of NIN usage underscores the need for a balanced approach that prioritizes both innovation and security. As Nigeria’s financial sector becomes increasingly digitized, the challenge lies in ensuring that convenience does not compromise safety.

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Sources:

[1] [NIMC Accuses Fintech Companies of Buying NIN from Fraudsters for as Much as N5,000](https://technext24.com/2025/07/28/nimc-cautions-youths-selling-nins-fraud/)

[2] [Punch Newspapers - Breaking News, Nigerian News & Top](https://punchng.com/)