Connect with us

Telecom

FG Displeased with State Government’s Over Increase of RoW charges

Published

on

Kindly share this post

The Federal Government has frowns at the State Governments’ disregard of Right of Way (RoW) charge agreement.

 

Dr Isa Ali Ibrahim Pantami, Honourable Minister of Communications & Digital Economy, in a statement released on Tuesday expressed the ministry’s dismay on the decision of some states of the Federation to increase the Right of Way charges in disregard of the resolutions reached by the National Economic Council (NEC).

 

According to the statement, “We received with dismay the decision of some states of the Federation to increase the Right of Way charges in disregard of the resolutions reached by the National Economic Council (NEC).

 

“It may be recalled that in 2013, NEC set up a Committee comprising State Governors and Ministers to review the issues of multiple taxation in the telecommunications Industry in Nigeria and its impact.

 

“The Committee, after extensive and wide-ranging consultations, resolved to harmonize the taxes applicable to broadband related activities and streamline the taxation management processes across the Federation. Specifically, to deepen broadband penetration for the social and economic development of the country, the Committee agreed to the uniform Right of Way (RoW) charge of N145.00 per linear meter of fibre”.

 

Pantami also reminded Nigerians that in October 2019, the ministry wrote all the State Governors, drawing their attention to these resolutions and soliciting their support and collaboration towards the realisation of the National Digital Economy by fast-tracking the deployment of broadband infrastructure for the provision of affordable internet services to underserved and unserved areas.

 

“It is true that the digital economy today is strategically dominating the world economy. Oxford Economics puts the current value of the digital economy at $11.5 trillion which is about 16% of the world economy.

 

“Furthermore, the World Economic Forum revealed that 60% of the global economy is expected to be digitised by 2022. With the renaming of the Federal Ministry of Communications to Federal Ministry of Communications and Digital Economy as well as the unveiling of the National Digital Economy Policy and Strategy by Mr President, we are on the path of realising the potentials of the digital economy,” he said.

 

Pantami further described the actions of these Governors as disheartening, noting that it will impact negatively on the efforts being made by the Federal Government to deepen broadband penetration for the social and economic development of the country.

 

According to him, “It is however disheartening to hear that some States have decided to disregard these resolutions and have, in some cases, increased the RoW charges by over 1,200%.

 

“This will no doubt impact negatively on the efforts being made by the Federal Government. It is established that there is a strong correlation between a country’s broadband penetration and its Gross Domestic Product (GDP). An ITU study on Africa indicates that a 10% broadband penetration would result in an increase of 2.5% of GDP per capita.

 

The minister therefore called on all State Governors, especially those that have made public their decisions to increase the RoW charges, to reconsider these decisions in the interest of Nigerians as well as for the socio-economic growth and development of the country.

 

“We also draw their attention that these decisions, if implemented, will result in an increase on the costs of operations of the telecoms operators which will naturally be passed to the consumers,” he stated.

 

 

 


Kindly share this post

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

TD Africa Empowers Nigerians with Sustainable Energy Solutions

Published

on

Kindly share this post

TD Africa, a leading technology distribution company in Africa, has unveiled its Green Hero Initiative, a groundbreaking program designed to tackle Nigeria’s persistent energy challenges and promote the adoption of sustainable energy solutions.

This initiative underscores TD Africa’s commitment to advancing cleaner, more affordable energy alternatives for Nigerian households and businesses.

As the cost of fossil fuels continues to rise, the urgency for a shift to renewable energy has never been more apparent. Recognizing this need, TD Africa has partnered with global industry leaders Huawei and EcoFlow to introduce innovative renewable energy solutions tailored to meet the unique needs of Nigerian consumers.

“The Green Hero Initiative is more than just a product launch; it’s a commitment to a sustainable future,” said Chidiebere Nwabuko, Business Manager, Renewable Energy Solutions at TD Africa. “We’re empowering Nigerians to take control of their energy needs, reduce their carbon footprint, and enjoy the benefits of reliable, clean power.

“By partnering with global leaders like Huawei and EcoFlow, we’re bringing cutting-edge technology to the market that is not only affordable but also tailored to the specific needs of our customers and Nigerians across the country.”

Through the Green Hero Initiative, TD Africa is offering a variety of renewable energy solutions that cater to diverse energy needs. These solutions include the powerful Huawei ISite Power M, ideal for powering homes and small businesses, and Huawei ISite Power S, designed for commercial and industrial applications.

Additionally, EcoFlow’s portable power stations are made up of the River series and Delta series that attend to the needs of low and mid-range Nigerians and provide a convenient and clean energy source for residential homes, small and medium businesses and outdoor activities or backup power.

By promoting the adoption of renewable energy, TD Africa is committed to significantly reduce carbon emissions and contribute to a more sustainable and environmentally friendly future for Nigeria. The company’s Green Hero Initiative is a significant step towards achieving this goal.

To ensure accessibility, TD Africa has made these solutions available through various online platforms. Consumers can conveniently shop for these products at justownitapp.com or KongaPlus via konga.com. Authorized partners of TD Africa can also access the range of offerings through the TD SuperApp at superapp.tdafrica.com.

 


Kindly share this post
Continue Reading

Telecom

Call, Data Tariffs Will Increase – Nigerian Minister, Tijani Declares

Published

on

Kindly share this post

Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, has announced that telecom tariffs in Nigeria will soon increase, but not by the 100 percent proposed by Mobile Network Operators (MNOs).

Following a stakeholders’ meeting with the MNOs in Abuja on Wednesday, Tijani confirmed that consultations and engagements are ongoing, and the Nigerian Communications Commission (NCC) will soon approve and announce the new tariffs to the public.

“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting for 100 percent tariff increase. But it will not be by 100 percent; the NCC will soon come up with a clear directive on how we will go about it. We want to strike the balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly,” Tijani said.

He emphasized the importance of regulating the telecommunications sector to ensure its growth and sustainability. Tijani also stated that the Federal Government would no longer leave infrastructure investments solely to private companies, as they tend to invest only where they can see short- to medium-term returns.

“We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity, people want to have access to quality service. A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services,” he added.

The Executive Vice-Chairman of the NCC, Dr. Aminu Maida, explained that the stakeholder meeting was focused on ensuring the sustainability of the industry. He confirmed that a 100 percent tariff increase was unlikely and that ongoing discussions would determine the final percentage, with an official announcement expected within a week or two.

“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” Maida said.

He also mentioned that the NCC had implemented several tools and instruments to ensure compliance with service quality standards and urged MNOs to adopt simpler pricing models to help consumers better understand charges.

“We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate. It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for. There is this agitation that the MNOs are stealing our data,” he added.

The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Airtel’s media spokesperson Femi Adeniran, defended the proposed tariff adjustments, citing rising operational and capital costs.

“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments. This is aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” Balsingh stated.

 


Kindly share this post
Continue Reading

Telecom

Banigbe, 9Mobile CEO Emphasizes the Need for Significant Investment in Infrastructure to Ensure Quality of Service

Published

on

Kindly share this post

Obafemi Banigbe, 9mobile CEO, has added his voice to the ongoing discussion on the proposed tariff hike, highlighting the telecom industry’s critical role in Nigeria’s economic growth.

He said “The telecom industry is a critical enabler of economic growth, but we are facing unprecedented challenges. We must find a balance between affordability and sustainability to ensure the industry remains viable and continues to provide quality services to Nigerians. The current situation has not achieved that balance, which is why we are having this conversation about sustainability,”

According to him, the industry is facing significant challenges, including macroeconomic headwinds, rising operational costs, and declining profitability. He emphasized that these challenges threaten the industry’s sustainability and ability to invest in infrastructure and quality of service.

“As you can imagine, both our capital and operational costs have risen dramatically, mainly because many of these costs are denominated in foreign currency or indexed to it, while our revenues are in local currency.

For instance, the Naira, which was previously around 400 to 450, has now officially surpassed 1,500—representing a nearly 350% increase in just the past two years.

This foreign exchange devaluation has caused our costs to surge. Even though the industry is seeing growth in top-line revenue, the increase in local currency revenue has not kept pace with the rising cost base,” he explained.

Banigbe’s comments come as the telecom industry continues to navigate the complexities of the proposed tariff hike. While some stakeholders have expressed concerns about the potential impact on consumers, others have argued that the hike is necessary to ensure the industry’s long-term sustainability. The telco chief said that if the sector does not remain viable, customers will not receive the services they expect.

Drawing from 9mobile’s experience, he pointed out that a lack of investment in recent years has led to a decline in service quality, causing customers to switch to competitors that offer better quality.

He stressed that this situation poses a significant threat to the industry’s sustainability.

“What we are saying is that every business must generate enough revenue to cover its costs and allow for reinvestment into the business. If we fail to generate sufficient revenue, we will have no choice but to borrow, either from shareholders or the capital market.

“Over the past two years, this is what many of us have been forced to do. However, this is not sustainable in the long term, as it will eventually become impossible to continue borrowing without a clear plan for repayment.”


Kindly share this post
Continue Reading

Trending