Telecom
MTN Group Hosts MTN Nigeria Board and Exco for Strategy Retreat
MTN Group this week hosted MTN Nigeria’s Board of Directors and Executive Committee in Johannesburg for a strategy retreat during which the leadership of the Group’s largest subsidiary reflected on its strategic priorities for the next three years.
The three-day working visit – hosted by MTN Group Chairman Mcebisi Jonas and MTN Group President and Chief Executive Officer Ralph Mupita – brought together for the first time in South Africa the boards and executive management teams of MTN Nigeria and MTN Group. The MTN Nigeria delegation was led by Chairman Ernest Ndukwe and CEO Karl Toriola.
During the trip, MTN Group and MTN South Africa held engagements attended by South Africa’s Minister of International Relations and Cooperation Naledi Pandor and Minister of Communications and Digital Technologies Khumbudzo Ntshavheni, as well as by Nigeria’s High Commissioner Muhammad Haruna Manta.
“Strong bi-national relationships between Nigeria and South Africa are critical for Africa’s progress,” said Jonas. “As MTN, we appreciate that our own progress cannot happen without the two nations building stronger and stronger ties and providing leadership to the continent.”
Mupita said MTN Nigeria represented approximately 40% of the value of MTN Group, and as such its achievements were key to the success of the Group: “As MTN Group, we are committed to supporting the business and ensuring that its success goes beyond just strong operational and financial performance, but also represents success for all stakeholders.”
“Initiatives such as extending rural broadband, driving financial inclusion from MTN Nigeria’s Payment Services Banking licence and ensuring further localisations remain critical for success and sustainability,” he added.
Jonas said MTN Nigeria was in good hands under the direction of Chairman Ndukwe and CEO Toriola. The MTN Nigeria leadership said that among the many discussions held in Johannesburg were how to navigate the unprecedented macro challenges that businesses across the world faced, as well as looking for the opportunities that these changes provided.
The MTN Nigeria leadership’s visit follows that of MTN Group’s Board of Directors and Executive Committee to Lagos in early July, when they held their own strategy retreat.
One of the four strategic priorities of MTN’s Ambition 2025 is to ‘create shared value’. Regularly engaging with our key stakeholders is essential for us to deliver on this priority.
Telecom
Suspected Lakurawa Terrorists Kill 3 Telcoms Workers in Kebbi
Terrorists belonging to Lakurawa group have reportedly killed three staff of a leading telecommunication firm.
The insurgents were said to have invaded a construction site at Gumki village in Arewa Local Government Area of Kebbi State.
The bandits reportedly attacked a construction site at Gumki village in Arewa Local Government Area of Kebbi State when their victims were installing a surveillance mast for the Nigeria Immigration Service and killed them and one other person who is yet to be identified.
There was a conflicting report of which organization the victims belonged as the police said three of the deceased were Airtel staff and the residents identified them to be Immigration staff.
A staff of Sir Yahaya Specialist Hospital however corroborated the villagers, saying the three victims brought to the hospital were Immigration staff.
But SP Nafiu Abubakar, police spokesperson, said four persons lost their lives, one indigene and three staff of Airtel.
He said from the report the police got, Bello M Sani, state Commissioner of Police, alongside with CIS Muhammad Bashir, Comptroller, Nigeria Immigration Service, Kebbi State Command, Lawali mobilized their men to the scene to evacuate the corpses to Sir Yahaya Memorial Hospital in Birnin Kebbi.
He said his CP has deployed additional tactical teams to the area and charged them to decisively deal with the suspected bandits operating in the area.
He said the CP also had meeting with people in the area and appealed to them to always assist the police and other security agencies with relevant information for their prompt response.
Telecom
Nigeria Has World’s Most Affordable Data Costs – GSMA
Nigeria has an average data cost of $0.38 per gigabyte, making her the most affordable countries globally and one of the cheapest in Africa for mobile data services.
United States averages $6 per gigabyte and South Africa with $1.77 per gigabyte rank the highest globally and in Africa respectively.
According to the GSMA, Nigerian data costs, as a percentage of Gross National Income (GNI) per capita, are among the lowest across Africa.
The reports by the body lends weight to telecom operators advocacy for tariff adjustments to address economic pressures threatening the sector’s sustainability.
The GSMA report, titled “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” highlighted Nigeria’s competitive data pricing, which is significantly lower than other African nations, such as Kenya ($0.59 per gigabyte), Ethiopia ($0.68 per gigabyte), and South Africa ($1.77 per gigabyte).
By contrast, the United States averages $6 per gigabyte, underscoring Nigeria’s advantage in offering cost-effective connectivity.
The cost of mobile data in Africa varies greatly by country and region.
Data costs can refer to the cost of mobile data or the cost of acquiring, maintaining, and using business data.
In 2023, the average cost of 1 GB of mobile data in Sub-Saharan Africa was $3.31, while in Northern Africa it was $0.86.
Telecommunications operators in Nigeria have been requesting some policy changes as well as tariff rebalancing to enable them deliver support to the Government’s digital economy objectives.
They have called for the simplification and improvement of the Right of Way (RoW) charging and administration process, harmonised across the country
According to them, all government authorities (at national and sub-national levels) should apply the national maximum RoW fee of N145 per/LSQM adopted by the National Economic Council (NEC) for the deployment of fibre across all states in Nigeria.
There should be a single point of contact in each state for the RoW application process while the duration for the approval process should be digitalised and limited to a maximum of one month.
Simplification and reduction of the tax burden on the mobile sector
On tariff, recall that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
Nodding in agreement, Bismarck Rewane, chief executive officer, Financial Derivatives, said the proposed tariff hike by telecommunications will help reduce inflation in the country.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
Telecom
Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
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