Telecom
Nigeria’s Aggressive Taxes is Cause of Bad Network – Report
Nigeria’s multiple and aggressive implementation of taxation on telecommunications companies is the cause of bad network quality, according to nairametrics.com
This was disclosed in a report released by SB Morgen titled “Inside Nigeria’s Subnational Fiscal Crisis”.
The report stated that the telecommunications industry appears to suffer disproportionately from this over taxation in Nigeria.
The report also revealed that there are over 40 different taxes and levies meted out upon the Mobile Network Operators (MNOs) carrying out telecom services in Nigeria.
However, the aggressive taxation of this sector has led to the degradation of network quality causing Nigerians to suffer the consequences.
What the report is saying
The report stated that the poor network quality is an evident result of telecoms corporations’ numerous taxation.
It said, ”A clear impact of multiple taxations of telecommunications companies is the degradation of network quality. This mostly occurs when state authorities, in a bid to enforce compliance in payment of taxes, lock up the facilities of telecom operators and deny them access to their sites for refuelling, maintenance or fault resolution.”
The report stated that the regulator’s forceful lockout of telcos would result in catastrophic network disruptions, affecting a large number of Nigerians.
The report said, “The lockouts are quite often targeted at large sites, which effectively paralyses a good section of the network, causing complete network outage for the affected communities over an area that could stretch across as many as two or more adjoining states.”
According to the report, the effects of such network failures are not limited to the impacted telecommunications network but may spread to others as affected clients transfer to other network providers when they are unable to enjoy service from their current network providers.
The report said, “telecommunications operators in Kogi State warned that the shutting down of their sites by the Kogi State government in a bid to force operators to pay more taxes and levies could lead to a communications blackout in as many as 11 states.”
The report added that “State governments often lock telcos out of their facilities in a bid to collect various taxes. Oftentimes this leads to a degradation of network quality”
What you should know
The Nigerian National Broadband Plan 2020-2025 estimates that 4G coverage is at 37% and has a target of achieving coverage of at least 90% of the population and a penetration rate of 70% by the end of the plan’s lifetime and delivering data download speeds of about 25Mbps in urban areas and 10Mbps in rural areas.
It also forecasts that for every 10% increase in broadband penetration, the country’s Gross Domestic Product (GDP) rises by 2.6-3.8%, making this an economically significant initiative.
According to Nigeria’s GDP data, the telecommunications sector had a nominal GDP of N14.1 trillion as of December 2021 compared to N5.3 trillion for the entire financial services sector.10 years ago (2021), Telecommunication Sector has a nominal GDP of N5.3 trillion while banks had a GDP nominal size of N1.49 trillion.
Telcos have a customer base and demand that will drive increased revenues and profitability in the coming years, with over 199 million active mobile users. Telcos also have the capability and capital to diversify into other areas of the economy, beginning with banking. MTN’s latest MOMO license provides the company with a new source of revenue.
Nairametrics reported that Nigeria’s telecommunications behemoth, MTN Nigeria, is now worth N5 trillion, making it more valuable than all banks, insurance companies, and financial services firms listed on the Nigerian Stock Exchange combined.
Telecom
NCC, CBN to Resolve Telecoms, Banks’ USSD Debt Issue
Nigerian Communications Commission (NCC) is in talks with the Central Bank of Nigeria (CBN) over the Unstructured Supplementary Service Data (USSD) debt totalling N250 billion between the telecom operators and the commercial banks in the country.
USSD, known as quick or feature codes, is a global system for mobile communications (GSM) protocol used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.
However, the USSD platform, which is widely relied upon by millions of Nigerians for quick and efficient mobile transactions, has become a point of disagreement between the banks and telecom operators.
The crisis dates back to 2019 when telcos proposed charging N4.50 per 20 seconds of USSD usage in order to cover operational costs after years of providing the service for free.
But the banks kicked against this, saying a 450% increase in transaction costs will significantly grow the debt and strain relations between the two vital industries.
However, Dr Ikechukwu Adinde, director of Consumer Affairs Bureau, NCC, who disclosed this move, said commission was hopeful the issue would soon be settled.
According to him, “The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected.”
He insisted that a resolution is critical to maintaining the seamless operation of mobile financial services that millions of Nigerians depend on daily.
Adinde, who also said plans are on to introduce reforms at enhancing tariff transparency in the telecommunications industry, believed the new move between the NCC and the CBN would put the debt issue finally to rest.
On transparency and responsibility policy, Adinde said the changes, set to roll out in the coming months, will require telecom operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.
Indeed, Karl Toriola, chief executive officer (CEO) of MTN Nigeria, had said in October that banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers.
Toriola had said mobile network operators (MNOs) might, subject to regulatory approval, suspend use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.
Also, Gbolahan Awonuga, executive secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), said in October that the debt between telecoms operators and commercial had hit N250billion.
Earlier, the telcos had lamented that they could no longer provide the services free, proposing a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.
But the banks kicked against this, adding that it would raise costs by 450 percent.
Credit: Daily Post
Telecom
9mobile CEO Highlights Key Solutions for Securing Electronic Money Transfers in Africa
Obafemi Banigbe, CEO of 9mobile, recently shared his expertise at the Alliance for Innovative Regulation (AIR) virtual conference, tackling the pressing issue of digital payment fraud in West Africa.
His insightful perspectives offered valuable insights into combating identity theft, a major threat to electronic money transfer security across the African continent.
Speaking as a panellist in a session moderated by Nick Cook, Chief Innovation Officer at AIR, Banigbe outlined how telcos play a pivotal role in protecting financial transactions.
“Fraud is fundamentally a human challenge, not just a technological one,” he remarked, emphasising that identity theft remains central to electronic money transfer fraud and requires a community-driven, human-centred approach.
He emphasized the critical role of telecommunications companies as guardians of security in the financial ecosystem. He outlined the proactive measures 9mobile and other telcos are taking to fortify financial systems, focusing on several key areas.
Banigbe highlighted the integration of Know Your Customer (KYC) systems, which leverage collaborations with national ID databases, banking records, and mobile number registries to enhance customer verification.
He also stressed the importance of robust security tools, including SIM registration, Biometric authentication (fingerprint and facial recognition) and One-Time Password (OTP)-based authentication. These measures he said collectively strengthen verification processes, ensuring a more secure financial ecosystem.
Banigbe reiterated the importance of partnerships between financial institutions and payment platforms. These collaborations enable the secure sharing of intelligence, ensuring compliance with data protection laws.
This, in turn, facilitates the detection of suspicious activities while maintaining privacy. He also highlighted the need to address delays in fraud tracking. To achieve this, he advocated for the deployment of real-time blacklisting mechanisms. This would enable swift action on reported incidents, preventing fraudsters from exploiting time gaps.
While highlighting the need for industry-wide collaboration, Banigbe pointed to the cost-effectiveness of shared investments in advanced security architecture. “No single organisation can tackle this alone. A united effort among telcos, financial institutions, and regulators is key to safeguarding our financial systems,” he asserted.
The panel discussion, which featured other notable speakers, including Ikenna Ndugbu (Moniepoint), Sheila Senfuma (Consumers International), and Modupe Ladipo (Prosperar Consulting), explored diverse aspects of combating digital payment fraud.
They discussed the role of robust compliance frameworks and transaction monitoring tools; addressed accessibility challenges for vulnerable populations, including people with disabilities like visual impairment that disallows them from baseline financial literacy; highlighted the specific vulnerabilities faced by women in informal financial systems and advocated for culturally sensitive financial inclusion strategies.
Banigbe further remarked on the need for proper access control within organisations to combat possible internal staff collusion with external fraudsters to make security systems more vulnerable.
“Regulating access will help prevent fraudulent activities within organisations,” he said, pointing to the need for stronger internal controls to safeguard sensitive processes.
He spotlighted the crucial role of telcos in creating a secure and inclusive digital financial ecosystem. Collaboration, Banigbe stressed, is essential to achieving lasting results in the fight against fraud.
“It is an ecosystem, and there should be a joint effort to enlighten the public on digital payment fraud and advocate for victims of fraud,” he concluded, calling for unified action among telcos, financial institutions, and regulators.
With over 100 participants attending the conference, the collective commitment to combat digital payment fraud is evident. Discussions continue to focus on leveraging technology, driving public awareness, and strengthening collaborative frameworks to address the pervasive threat of identity theft.
Telecom
Prof. Adewale Obadare Shares Key Insights on Breaking into Cybersecurity
Professor Adewale Obadare, a renowned cybersecurity expert and the first Professor of Practice in Cybersecurity in Nigeria, shared his valuable insights on how to break into the cybersecurity industry. With over 58 professional certifications and numerous awards, including the Outstanding Digital Trust Leader Award, Obadare’s expertise is unparalleled.
Speaking at FirstBank’s Cybersecurity Career Webinar that was held over the weekend, Prof. Obadare emphasized that cybersecurity is a field with numerous opportunities, including job security, competitive salaries, and global recognition.
However, he noted that many individuals struggle to break into the industry due to a lack of understanding of their strengths and weaknesses.
To succeed in cybersecurity, Obadare advised individuals to identify their cognitive strengths and choose a career path that aligns with their skills.
He emphasized that there are two primary paths in cybersecurity: technical and governance, risk, and compliance (GRC).
Obadare debunked the myth that certifications are unnecessary, stating that they provide a structured way of learning and are essential for building cognitive competence.
He defined cognitive competence as the acquisition of knowledge and theoretical understanding, which is synonymous with knowledge and mastery of concepts and theoretical knowledge.
Obadare shared a personal anecdote to illustrate the importance of cognitive competence. He recalled a situation where a colleague, who was practically skilled but lacked cognitive competence, deleted a critical system file (NTLDR) while backing up a critical system.
Obadare, who had acquired cognitive competence through certification, knew that deleting the file would prevent the system from booting up. He intervened, recovered the file, and restored the system.
He further emphasized that cognitive competence is essential for making informed decisions and taking effective actions in cybersecurity.
He encouraged individuals to acquire certifications, such as CompTIA Security+, to build their cognitive competence and provide a structured way of learning.
In addition to cognitive competence, Obadare highlighted the importance of functional competence, which is the ability to translate theoretical knowledge into practical skills.
He emphasized that individuals need to strike a balance between cognitive and functional competence to succeed in cybersecurity.
While advising prospective Nigerians seeking to take up career in cybersecurity, Obadare advised them to be humble, open-minded, and willing to learn from others.
According to him, “My advice to individuals seeking to break into cybersecurity is to acquire certifications to build cognitive competence. Cultivate behavioral competence by being humble, open-minded, and willing to learn from others. Continuously learn and self-improve, as cybersecurity education and career is a journey, not a destination”.
In conclusion, Obadare’s insights provided a valuable roadmap for individuals seeking to break into the cybersecurity industry. By acquiring certifications, developing practical skills, and cultivating a positive attitude, individuals can set themselves up for success in this rapidly evolving field.
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