Telecom
COVID-19: E-commerce companies cry out under weight of restrictions by Govt security operatives
At a time when global players in the e-commerce sector have seen the peculiarities of their operations come to the fore in helping governments and people in other climes observe social distancing and stay in supply of essential items without leaving their homes, the Nigerian e-Commerce sector is instead buckling under the weight of heavy restrictions by state actors and law enforcement officials; leading to no end of frustrations for players in the sector.
E-commerce giants in other climes such as Amazon and Alibaba, for instance, have played important roles in the fight against COVID-19 in other parts of the world, working in concert with the government in helping people ensure social distancing through wholesome adoption of online and contact-less shopping.
However, investigations reveal a sorry tale of huge pains and frustrations among e-Commerce players in Nigeria, in stark contrast to what obtains elsewhere.
The likes of Konga and Jumia, two of the biggest operators in the Nigerian market have endured difficulties at the hands of government enforcement agents, despite being the best means of contact-less shopping that can help in curbing the spread of the virus.
Research shows that in a number of countries and even in Africa, e-Commerce players have been supported and encouraged by the government in the fight against COVID-19.
But here in Nigeria, the situation is different.
The Nigerian government and some state governors have not only failed in openly backing the operations of e-Commerce players as an essential ally in the COVID-19 crisis, but a situation where security operatives are frustrating the operations of e-commerce companies due to the ongoing lockdown and border closures has further worsened matters.
A source at Konga, who spoke on condition of anonymity provided some insights into the dire situation.
‘‘E-Commerce is a cost-intensive venture all over the world, one which relies on a number of very expensive applications which must be constantly paid for.
“Konga, for instance, is burning a lot of cash to keep the business going and employing thousands of Nigerians directly and indirectly.
“Yet, we are taking huge losses in meeting the commitments to our customers, many of whom rely on us for essential deliveries.
“Our merchants, who we also rely on in meeting the numerous online orders, cannot open their shops due to the lockdown.
“These merchants are individuals who have all being trained on essential safety procedures such as wearing masks, gloves and social distancing and, as such, pose little infection risk.
“In addition, we have to endure undue delays in the course of reaching the customers. For instance, a truck making essential intra-state deliveries is often delayed for a minimum of six days, thereby causing huge pains for the company and consumers,’’ he lamented.
‘‘Even when granted exemption letters, the situation on the streets is far from ideal. We have encountered severe delays and huge frustration as a result of the overzealous actions of some security operatives who sometimes refuse to grant access to delivery personnel or in other cases, even turn them back. The government needs to do something about this.’’
Also, feedback from sources at Jumia, who pleaded not to be named, paints a picture of frustrations.
‘‘In virtually every other country, e-Commerce is being deployed as a critical weapon in the fight against COVID-19. Consumers are encouraged to go online and leverage e-Commerce for contact-less shopping by staying at home and receiving their essential deliveries including groceries at their doorsteps.
“Shoppers can also pay via e-channels which obliterates the use of cash or POS. But in Nigeria, we have hardly seen any form of institutional support in this regard.
‘‘In fact, we have seen a situation where delivery is constantly being hampered by the harassment of our riders, vendors and delivery men on a daily basis.
“This happens to both intra-state and inter-state deliveries. As a result, deliveries that should take 24 hours due to the absence of traffic on the roads now stretch for days or don’t even happen at all in some cases.
“Also, our staff, who actually are essential service providers, equally face serious difficulties and in some cases, harassments by security operatives on their way to and from work.
Continuing, the source stated: ‘‘Government has a critical role to play in nipping this worrisome situation in the bud as the operations of most e-commerce companies are suffering.
‘Worse still, when consumers encounter undue delays for an item ordered online, they would naturally turn to offline markets, thereby worsening the risk of community transmission of the virus.’’
Indeed, with the emergence of the COVID-19 pandemic which broke out in Wuhan, China but which has since spread across the globe, virtually every country has had their national life and normal economic activities disrupted.
Subsequently, a number of measures have come into force in helping curb not only the spread of the dreaded virus, but also halt community transmission, which has been identified as one of the most worrisome aspects of the war against COVID-19.
Specifically, there is an emphasis on behavioural changes, with social distancing and improved personal hygiene emerging as essential guides.
Furthermore, restrictions have been placed on areas of high human concentration such as airports, schools, religious gatherings and most importantly, markets.
Consequently, e-Commerce has emerged as a ready-made channel for helping people carry out contact-less shopping, observing social distancing and the important call to stay at home, while also coping seamlessly with the shut-down of offline markets.
As a matter of fact, evidence abounds of how e-commerce has been leveraged to great effect in other climes and even in other African countries in the face of the COVID-19 pandemic.
In Germany and New Zealand, two of the countries that have made the most progress with respect to curbing the COVID-19 pandemic, e-Commerce has been one of the secrets.
Even in other African countries such as Morocco, Ghana, Uganda – where citizens were advised in a government communique to opt for online shopping options as a means of getting essential items delivered to homes – and in Ghana – where e-Commerce was given special status and Ghanaians urged to rely more on digital channels for the delivery of food and other essentials; the situation is different.
In fact, same special deployment of e-Commerce in aiding the citizenry observe the essential regulations of social distancing and reducing unnecessary contact in crowded markets has been identified in China, Spain, France, the United Arab Emirates, among others.
However, in Nigeria, the situation is almost the opposite.
A number of Nigerians, left with little choice due to afore-mentioned challenges encountered by e-Commerce players, are increasingly relying on open-air markets – which manage to escape the subsisting ban – to shop for their essentials.
Perhaps unsurprisingly, the country is currently battling to stop ongoing community transmission of COVID-19 as confirmed cases continue to rise by the day. Going by recent figures released on Saturday by the country’s disease-fighting agency, the Nigeria Centre for Disease Control (NCDC), Nigeria has recorded 1182 cases of COVID-19; with Lagos in particular, accounting for nearly 60 per cent of the cases.
Yet, e-Commerce companies, which have the capability to reach the last mile with essential deliveries, are not given free rein to operate.
Further buttressing the points raised above, the source at Konga called on the government to take action.
‘‘We expect the government and the authorities to act. E-Commerce companies in Nigeria can play a key role in the fight against COVID-19, as can be seen from the examples in other countries.
“The Nigerian government should provide more institutional support and some form of public backing for this budding sector as this would go a long way in not only encouraging more Nigerians to embrace the needed behavioural change central to the COVID-19 fight but would also ensure less hassles from other state actors on the highways,’’ he concluded.
Nigeria is currently battling hard to rein in the rampaging COVID-19 pandemic.
While there has been no formal restriction of e-commerce players, the government has equally stopped short of any form of official public pronouncement or declaration to ensure that the services of e-Commerce companies are protected and not disrupted by security agencies enforcing the lock-down.
In addition, the government has failed in toeing the path of other countries in leveraging e-commerce to great advantage in helping Nigerians stay in supply of essential products while complying with the lockdown.
Telecom
Firm Highlights Skills Development to Drive Data Center Expertise and Sustainability
The integration of modern technologies has introduced both challenges and opportunities for the data center workforce. Over the past 15 years, the evolution from finance-focused IT applications to edge computing on the cloud has transformed the industry, steering data centers toward a more distributed IT model.
Today, the emphasis is on sustainability, and selecting the right certifications is pivotal for career development in various roles, ranging from data center design to networking and security.
Ben Selier, Vice President of Secure Power for Anglophone Africa at Schneider Electric, emphasizes the need for strategic skills development, noting that, “Training and certifications in data centers have traditionally focused on IT-related and non-IT-related roles. With the industry shifting towards sustainability and smart technologies, the need for relevant certifications has never been greater.”
The shift to the Internet of Things (IoT), artificial intelligence (AI), and smart applications has fueled the digital economy but has not been matched by the growth of a skilled workforce. Specialized IT professionals, previously experts in fields like finance software, face the challenge of rapidly outdated skills.
“The adoption rate of technologies like AI—reaching 1,000 million users in just two months compared to the World Wide Web’s seven years—highlights the pressing skills gap in areas such as cooling and power specialization,” Selier explains. Companies are struggling to train or hire fast enough to meet the demand, exacerbating operational issues within data centers.
Modern technologies offer significant competitive advantages, but Selier warns of the challenges: “Attracting and recruiting skilled technicians, engineers, and operators has become a critical priority for the industry. Without proper investment in training, the shortage of qualified staff could hinder growth and innovation.”
Certifications remain a cornerstone for building expertise in the rapidly changing data center landscape. Schneider Electric has been proactive in addressing this need through its Schneider Electric University and comprehensive training services. “Our programs are designed to bridge the knowledge gap, enabling professionals to gain the latest competencies quickly,” Selier notes.
Flexible training plans have also been introduced to meet immediate demands, allowing companies to collaborate with data center partners for temporary solutions while their teams undergo certification. The EcoXpert™ Partner Program, which initially focused on IT solutions, has been expanded to include sustainability certifications for roles such as cooling specialists and systems integrators.
“The program reflects the growing need for sustainability-specific training, empowering partners to adopt innovative technologies in data center design and operations,” Selier explains. The initiative is designed to educate and create opportunities for collaboration across industry.
The rise of AI, cloud, edge computing, and IoT has disrupted traditional data center operations, making advanced certifications essential for career growth. Certified EcoXpert partners gain expertise in areas such as power distribution, grid management, and new energy landscapes.
“Acquiring skills in emerging technologies not only breaks traditional constraints but also propels the career trajectory of data center professionals,” Selier asserts. The expanded EcoXpert program is tailored to meet the evolving needs of individuals and organizations, fostering collaboration and innovation in critical infrastructure.
He concludes with the statement, “The future of the data center industry depends on our ability to develop talent, embrace sustainability, and invest in skills that meet the demands of a rapidly evolving landscape.”
Telecom
Subscribers’ Group Threatens to Sue Telcos over Proposed Tariff Hike
Subscribers have said they are preparing to sue telecommunications companies over a proposed tariff hike that could double service costs nationwide.
Adeolu Ogunbanjo, national president, National Association of Telecommunications Subscribers (NATCOMS), said that his group plans to file a class-action lawsuit if the telecom operators proceed with the hike without first exploring alternative revenue-generating methods.
Punch reported that Ogunbanjo criticised the proposed 100 per cent tariff hike as excessive and unsustainable, urging the Nigerian Communications Commission to deny the operators’ request.
“Initially, we were looking at a marginal increase of five per cent to 10 per cent. Then the NCC considered a 40 per cent increase. Now, telcos are proposing 100 per cent, and we are saying no,” Ogunbanjo.
The proposed tariff hike would raise the cost of a voice call from N11.00 to N22.00 per minute, an SMS from N4.00 to N8.00 per message, and a 1GB data bundle from N1,000 to N2,000.
The NCC is currently reviewing the proposal and has not yet made a final decision.
Ogunbanjo warned that NATCOMS was ready to challenge any approval in court, stating, “This is a sector of national interest, and we will not hesitate to seek legal redress to protect subscribers’ rights.”
The NATCOMS president suggested that telecom operators explore the capital market as an alternative to raising tariffs.
“They can go to the Nigerian Stock Exchange to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully; other operators like Glo and Airtel should follow suit,” he added.
Ogunbanjo acknowledged the financial pressures faced by telcos, including inflation and rising operational costs. However, he emphasised that subscribers should not bear the brunt of these challenges without first exploring other viable funding options.
“If the operators cannot meet their financial needs after raising funds through the stock exchange, they can return to the table for discussions,” he said.
The consumer group argued that the proposed hike would disproportionately affect low-income subscribers and could hinder access to essential communication services.
Recall that, Karl Toriola, chief executive officer, MTN Nigeria had recently said that telcos had formally submitted requests to the NCC for the 100 per cent tariff hike.
“We’ve put forward requests of approximately 100 per cent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.
He defended the proposed hike as essential for the sustainability of the telecom sector, which has been grappling with rising operational costs.
Telecom
Navigating the Path to Sustainable Telecom Services for Subscribers
By Dinesh Balshingh
As Nigeria continues its journey towards becoming a digitally driven economy, reliable telecommunications services remain the backbone of our collective progress. At Airtel Nigeria, we are committed to delivering world-class connectivity to millions of Nigerians, enabling economic growth, empowering businesses, and enhancing lives.
We understand that the future technology needs of the country, as ushered in by the highspeed 5G era of AI, Cloud computing, Data science applications, and Blockchain, should be directing significant investments towards building a resilient network. However, the industry faces significant challenges that require a closer look as we strive to maintain the high standards that our customers deserve.
Increased Intensity of Investments: The increasing demand for digital services across sectors such as education, media, banking, transportation, and manufacturing has come with an increased demand on telecom capacity.
Upgrading networks to deliver more data capacity is key to a sustainable future. To help ensure that the Nigerian economy keeps pace with the global improvements in technology and communications while supporting the aspirations of consumers, we also take on the responsibility of executing new technology and system upgrades as well as improved security. Data security is now more than ever a priority as more and more people upload personal information online.
All of these require significant investments which are sourced from the international markets at costs denominated in US Dollars. In the past three to four years, for instance, the dollar has gone from exchanging for about N500 to over N1,600.
This more than three-fold increase in foreign exchange conversion exponentially increases the cost of investments required to run a good quality network.
In addition to this unprecedented hike in capital expenditure, the operating costs have surged dramatically, with operating expenses rising by over 300% in the last 18 to 24 months alone.
While several critical areas of the business are impacted, I would, for expediency, focus on three of those areas: Rising Energy Cost, Infrastructure Challenges, and a Commitment to Quality Service.
Rising Energy Costs: Powering telecommunication infrastructure requires significant energy resources. Energy is the single largest operating cost for running a network. With increasing global energy prices and while efforts are ongoing to fully stabilize power supply in Nigeria, Airtel Nigeria and other operators in the sector are incurring soaring costs to keep networks running seamlessly.
Infrastructure Challenges: The industry continues to grapple with rampant fiber cuts and vandalization of critical infrastructure. These incidents not only disrupt services but also demand substantial investments to repair and maintain facilities.
Commitment to Quality Service: Despite these challenges, Airtel Nigeria has remained steadfast in ensuring quality of service. From expanding 4G and 5G networks to meeting growing demand in urban and rural areas, we have painstakingly absorbed the rising costs of these obligations to avoid compromising the customer experience and ensuring Nigerians, regardless of their location, have access to mobile communication and remain connected to the digital economy.
Telecommunications operators have worked tirelessly to sustain services despite keeping tariffs unchanged for the last 10 years. While tariffs have remained static for over a decade, the economic realities necessitate a review to ensure the sustainability of services hence our recent application to the government for tariff adjustment which if approved will be a step towards addressing this imbalance.
It is not a decision taken lightly but one borne out of the need to guarantee continued investment in network expansion, technology upgrades, and improved service delivery.
The telecommunications sector is pivotal to Nigeria’s ambition to become a digital economy leader in Africa. Meeting this aspiration requires operators to make substantial investments in network infrastructure, spectrum acquisition, and innovative solutions. These investments come at a cost, one that must be shared proportionally to ensure long-term viability.
At Airtel Nigeria, we remain resolute in our commitment to:
Delivering Quality Services: As the government continues to monitor operators’ compliance with service quality standards. Airtel is dedicated to surpassing these benchmarks, ensuring customers experience uninterrupted and superior connectivity.
Driving Economic Growth: By expanding our network and enhancing digital inclusivity, we are enabling the government’s economy turnaround agenda and fostering opportunities for all Nigerians.
Being a Reliable Partner: Despite industry challenges, we are steadfast in our role as a trusted partner in Nigeria’s digital transformation journey.
While significant tariff adjustments have become warranted for the sustainability of the industry, Airtel has always been sensitive to affordability and understand that the price adjustments must be done gradually to support our customers’ financial positions.
“We believe that an approval of revised tariffs will empower operators to invest in capacity, expand coverage to underserved areas, aim for advanced security on the networks, and improve service quality and network availability while ensuring that Nigeria remains competitive in the global digital landscape.
As we navigate the present imperatives together, we urge all stakeholders, including customers, regulators, and partners to recognize the importance of building a resilient telecommunications ecosystem. Airtel Nigeria remains committed to delivering unmatched value while supporting the nation’s economic development.
Dinesh Balsingh is the Managing Director/CEO of Airtel Nigeria.
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