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Internal haemorrhage as threats to telecoms services
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By Sonny Aragba-Akpore
Without sounding a death-knell,telecommunications service companies are troubled.
Although,the big players display glamour and pictures of “all is well” what you see is
nothing but a facade as the companies are grasping for breath as a result of the internal haemorhage plaguing their service provision.
And unless government rejigs its policy on foreign exchange as a quick intervention, to cushion importation of equipment to boost services,many of the so called A grade players may go into worst shapes.
Operating Expenditure (OPEX) has more than doubled since 2021 and with dwindling foreign inflows through Foreign Direct Investments(FDIs), some telcos are now holding on to straw to survive.
The operators see their biggest challenges in their inability to provide quality of service and a result of recurrent vandalism of their infrastructure.
Every operator has become its own electricity power provider as supplies from national grid are now a pipe dream.Added to this, the spiral costs of diesel and its alleged incessant theft of same by unnamed persons creates bigger problems.
The rising cost of diesel is very worrisome as a litre that sold between 1200/1400 at pump landing at site is now as high as NGN 2000 per litre on site in some parts of the country.
Confirming the internal haemorhage,in the sector,an official who wants to be anonymous said part of the haemorrhage stems from significant high interconnect debts between players. Telcos are being owed alot of money thereby leading to terminal struggles for survival.
The telcos also list Political incursions as a major drawback hindering survival.
On the issue of Forex sources : “willing seller, willing buyer on forex, problem is bills that are being settled now due to long wait for forext transactions when Forex was at 700N =US1 and now being paid at the prevailing rate of 1,400+
High OPEX remains a major issue coupled with Low FDIs leading to concerns in industry sustainability.
They claim that the regulator is in a dilemma especially on tariff hike issues.
So Telcos are now on bent knees scrapping to provide services below cost.
And the Government looks elsewhere inspite of manifest inflation on every single item especially now that Infrastructure are experiencing decay and to replace same is slow and painful as telcos lament their inability to deliver robust Services .
To underscore a picture of this haemorrhage,
MTN Nigeria and Airtel Africa (the only two telcos publicly traded) lost N479 billion to currency revaluation and recorded reduced profit margins in the first nine months of 2023.
In its financial report for Q1, 2024, for instance,MTN reported a second successive loss after declaring a loss after tax of N392.7 billion for the first quarter of 2024.
This is coming despite growing its service revenue by 32.0 per cent to N747.3 billion year-on-year, the telco recorded its second loss since it was listed on the Nigerian Exchange.
It noted that its net loss for the quarter further increased its accumulated losses and negative shareholders’ funds to N599.2 billion and N434.7 billion, respectively. It highlighted that its profit after tax adjusted for the net forex loss declined by 57.8 per cent to N47.1 billion.
“Further adjusting for the impact of the naira devaluation in OPEX, PAT would have been down by 5.3 per cent to N105.6 billion,” MTN said. The telco’s net foreign exchange loss stood at N656.37 billion.
MTN Nigeria’s chief executive officer, Karl Toriola, noted that severe macroeconomic headwinds overshadowed a solid operating performance. He said: “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base.” He stated that the naira’s devaluation and record-high inflation have impacted the operating environment for businesses in Nigeria.
The operators are agitating for tariff hikes as part of measures to sustain their operating expenditure.But that is half way through if all they get the regulator,s ,Nigerian Communications Commission (NCC)’s nod.
The operators are trying to justify the tariff increase because “Consumer prices in other sectors have seen a steep rise over the last six years as they adjust to reflect macroeconomic realities. However, telco prices have remained flat and even declined. Contrary to the price trends in other sectors, telcos have had to adjust for the macroeconomic headwinds caused by an increasing erosion of margins. Other highly regulated sectors such as power and insurance have implemented price increases over the last year. Insurance prices have risen 200 per cent with power raising prices by over 40 per cent.”
They also decry the strong macroeconomic headwinds which have occasioned tough operating conditions, leading to a decline in CAPEX (Domestic) and Foreign Direct (Capital Inflow) investments into the industry by 30.37 per cent and 46.9 per cent respectively between 2021 and 2022.
These headwinds include inability to source foreign exchange and attract foreign direct investment because investors have become uncomfortable because of the grave economic uncertainty in the country.
Without meaning to link the crisis to a flip flop economy,the operators think unless something urgent is done,providing quality of service will not be sustainable because of the multiple effects of operating costs.
Owing to the macroeconomic crisis , resulting in increased cost of operation and overheads, most telecom companies in Nigeria have been posting losses, making it difficult for them to pay their Annual Operating Levy (AOL) to the Commission as and when due.
The operators are worried about the restrictive regulatory approach which is unconducive for the highly needed innovation in this evolutionary era of newer communication technologies.
“We invite the EVC to note that the convergence of telecommunications with digital and multimedia services has greatly reduced the revenue streams from traditional telecommunications services (voice, SMS, etc.)and to survive this digital era, telecommunications operators have no choice but to quickly evolve into digital and platform service providers which enable newer and advanced means and uses of communications technology and this is only possible in a regulatory environment that enables the development of innovative products and services, with a flexible regulator that is well-informed on the latest technology developments/requisite regulatory frameworks, and an appreciation for the reverberating impact of derailing this progression.” they lamented.
In 2023,MTN declared its first loss after tax of N137 billion. and Its retained earnings and shareholders’ fund fell to negative N208.0 billion and N40.8 billion, respectively.
For Airtel, profit before taxes result for the half-year 2023 was much worse, it dropped by a staggering 97.7 per cent – from $516 million to $12 million – compared to the results from 2022.
The report showed that Airtel had consistently grown its revenue in Nigeria since Q2 2018. The only time there was a drop in revenue between quarters was in 2020 when revenue dropped from $377 million in Q1 2020 to $341 million in Q2 2020. This $36 million drop in revenue is nothing compared to the decline seen in 2023.
Its revenue for Q1 2023 was $543 million, a $2 million drop compared to the previous quarter – $545 million in Q4 2022. By Q2 2022, the drop in revenue increased by $15 million, from $543 million to $528 million.
Although figures of losses sustained by the other unquoted telcos are unavailable,there are strong indications that all is not well.
Several of them are owing interconnect fees and generally unable and or late in payment of AOL.
Consequently,the late and inability to pay AOL to the NCC tells one of the bad stories of the situation on ground.
In general terms,the sector is believed to be wobbling and In fits.
Deposit Money Banks are also part of the telcos headaches as they are believed to be indebted to the tune of about Two hundred billion naira (#200b) in unsettled Unstructured Supplementary Service Bus(USSD) services rendered by telcos to the banks.
The telcos also bemoan the fate of their equipment and infrastructure across the country.
They had canvassed for comprehensive protections for their infrastructure by suggesting to government to make telecommunications equipment Critical National Infrastructure (CNI) but government officials say this is “Work In Progress (WIP) as the telcos wait in limbo.
Apart from these,they have had to contend with multiple taxations whereby the Federal Government,states and council governments put immense pressure on telcos for various taxes at different levels.
Apart from the taxes,Right of Way is an albatross that had defied any solutions and so the telcos have had to live with it.
The telcos say that
“notwithstanding the much-touted resilience of the telecommunications sector and its commendable double-digit contribution to the GDP, we wish to strongly impress on the NCC the pressing need to avert the grave risk looming in the industry’s horizon by taking clinical and definitive action towards repositioning the industry for growth and increased investments, because ultimately , it is our considered view that a thriving telecommunications sector will have a far-reaching effect on:
o Mobile Network Operators as they will remain going concerns who can carry on sustainable operations with the overall intention of value creation and enabling connectedness;
o The maximization of consumer welfare for Nigerians who, as the the NCC rightly noted, are the most critical stakeholders in the telecommunications value chain; and
o The Government itself, given that the net effect of a sustainable communications industry is bolstered investor confidence, increased contribution to GDP and, by extension, revenue growth in the form of payment of increased direct/indirect taxes and Annual Operating Levies” in that regard.
News
Migration Challenge Worsen in West Africa as Smuggling Networks Adapt
By Gloria Ikibah
Irregular migration across West Africa is expected to remain at persistently high levels for the rest of 2026 despite tougher border controls and increased interception operations.
Assistant Superintendent of Immigration with the Gambia Immigration Department (GID), Alkali Jammeh, gave the warning while addressing parliamentarians at the ECOWAS Parliamentary Citizen Engagement on the Dangers of Irregular Migration and Modern Slavery, held in Banjul from 6 to 10 July.
Jammeh said current trends pointed to sustained migration pressure across the region, fuelled by increasingly sophisticated smuggling networks and continued movement through established migration corridors.
According to him, enforcement efforts have done little to slow the pace of illegal migration during the first six months of the year.
“Current indicators suggest that irregular migration will remain high during the second half of 2026.
“Irregular migration remained at a high and sustained level during the first half of 2026 despite intensified border enforcement and interception operations by the Gambia Immigration Department (GID),” he said.
He added that operational intelligence showed, “The Gambia continues to function as both a transit and departure country along the Atlantic migration route.”
Jammeh said data collected during the second quarter revealed a sharp rise in the interception of migrants, voluntary returns from Libya and Tunisia, and deportations from European countries, particularly Germany and Italy; he also warn that criminal syndicates were adapting quickly.
“In the second quarter, a significant increase in migrant interceptions, voluntary returns from Libya and Tunisia, and deportations from Europe (mainly Germany and Italy) demonstrated that migration pressures remained strong and are becoming increasingly organised.
“Smuggling networks continue to exploit coastal communities, unauthorised border crossings, and regional migration corridors, requiring sustained intelligence-led operations and enhanced regional cooperation,” he said.
He also disclosed that security agencies continue to intercept large groups of migrants, with most coming from neighbouring West African countries.
Jammeh further revealed that a growing number of vulnerable migrants, including Gambians, were being intercepted.
He said migration remained largely male-dominated but observed a gradual increase in female migration, but also raised concerns about the increasing presence of children among migrants, saying it suggested that more families were embarking on dangerous journeys.
“Migration remains predominantly male. Nearly one in five migrants are female. Female migration is becoming more visible in mixed migration flows.
“The presence of children indicates family migration and child protection remains a priority,” he stated.
Providing a breakdown of migrants intercepted, Jammeh said Senegal accounted for the largest share.
“Senegalese nationals form the largest group (842 or 33.7%). The Gambians remain a significant proportion (781 or 31.3%). Guinea (424 or 17.0%) and Mali (383 or 15.3%) continue to contribute to migration flows,” he explained.
“Nearly all migrants originated from ECOWAS Member States,” he said, identifying Senegal, The Gambia, Guinea and Mali as the principal countries of origin.
“The implication suggests that migration trend remains predominantly regional,” he added.
Summing up developments during the second quarter, Jammeh painted a worrying picture of the evolving migration landscape.
“Key observations during Quarter 2: Increase in organised group movements. Continued dominance of ECOWAS migrants. Persistent involvement of Gambian nationals. Growing number of women and children. Continued use of irregular migration routes,” he said.
He also identified weak legal frameworks, inadequate patrol and surveillance equipment, limited operational funding, shortages of fuel for border patrols and the complicity of some local communities as major obstacles to tackling migrant smuggling.
Looking ahead, Jammeh warned that the situation could deteriorate further unless governments across the region strengthen cooperation.
“Current indicators suggest that irregular migration will remain high during the second half of 2026.
“Smuggling networks are likely to continue exploiting coastal departure areas while adapting their methods to evade law enforcement operations.
“Migration flows from Senegal, Guinea and Mali are expected to remain significant, while returns from North Africa and deportations from Europe are likely to continue increasing.
“Without sustained enforcement, intelligence gathering, community engagement and regional cooperation, migrant smuggling activities may become more organised and difficult to disrupt,” he explained.
News
House Defends Abbas Over Capital Projects Motion, Says Row Was About Procedure, Not Debate
By Gloria Ikibah
The House of Representatives has defended Speaker Rt. Hon. Tajudeen Abbas over Wednesday’s controversy surrounding a motion on the implementation of capital projects in the 2026 Budget, insisting that the disagreement was purely procedural and not an attempt to prevent debate on the issue.
In a statement issued on Wednesday, by the House Spokesman, Akin Rotimi, he said public reactions to the incident had misconstrued what transpired during plenary, stressing that the Speaker acted strictly in accordance with the House Standing Orders.
The clarification followed debate over a Matter of Urgent Public Importance sponsored by the member representing Aba North/Aba South Federal Constituency of Abia State, Rep. Alexander Mascot Ikwechegh, on funding challenges confronting Ministries, Departments and Agencies (MDAs) and the execution of the capital component of the Federal Budget.
According to the House, the controversy did not stem from the subject matter of the motion but from discrepancies between the version submitted to the Speaker for approval and the one eventually presented on the floor.
“The issue was not the substance of the motion, but a procedural matter relating to a difference between the version of the motion submitted to the Speaker for approval and the version presented on the floor,” the statement said.
It explained that under Order Eight, Rule 5(1) of the Standing Orders of the House of Representatives (Eleventh Edition), every Matter of Urgent Public Importance must first be submitted to the Speaker before it can be raised during plenary.
“This ensures that only matters meeting the required threshold of urgency are admitted and that Members deliberate on an authenticated text,” the statement added.
The House noted that despite objections from some lawmakers, Speaker Abbas admitted the motion for debate, allowing Ikwechegh to present it before members.
However, while the motion was being moved, the Speaker observed that key aspects of the document differed from the version earlier approved.
“Some portions of the motion, particularly the proposed resolutions and prayers, differed materially from the version earlier submitted and approved. Additional prayers not contained in the approved document had been introduced,” the statement said.
To safeguard the integrity of parliamentary proceedings, the Speaker directed that the officially submitted version be read aloud and invited members of the Minority Caucus to verify the discrepancies.
“As an institution built on records and due process, the House can only take decisions based on motions and documents duly submitted, authenticated, and admitted for consideration. Any substantial alteration to an approved motion during presentation must follow the appropriate parliamentary procedure,” the statement further read.
The House rejected suggestions that the opposition lawmaker had been prevented from raising the matter.
“It is important to emphasise that the sponsoring Member was not prevented from raising the issue before the House. The concern was solely about ensuring compliance with established procedures and maintaining the integrity of legislative records,” it stated.
The statement further reminded lawmakers of their responsibility to comply strictly with parliamentary rules.
“While acknowledging that Members continue to deepen their understanding of parliamentary practice, all Members are expected to present motions strictly in the form submitted and approved for consideration,” it noted.
According to the House, the Speaker subsequently referred the matter, based on the prayers contained in the officially approved motion, to an ad hoc committee for further legislative examination and a report.
Reaffirming its commitment to due process, the House said it will continue to protect members’ right to raise issues of urgent public importance while ensuring that legislative business is conducted in line with established rules.
“The House of Representatives remains committed to protecting Members’ rights to raise matters of public importance while ensuring that all proceedings are conducted in line with the Standing Orders, due process, and the highest standards of parliamentary integrity,” the statement asserted.
News
Tinubu Sends Two Key Bills to Reps, Rejects Two National Assembly Amendments
By Gloria Ikibah
President Bola Ahmed Tinubu has forwarded two executive bills to the House of Representatives for consideration, including proposals to strengthen senior secondary education and reform Nigeria’s criminal justice system, while withholding assent to two amendment bills passed by the National Assembly over constitutional and legal concerns.
The President’s letters were read by Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, during plenary on Wednesday.
One of the proposed legislations, the National Senior Secondary Education Commission (Amendment) Bill, 2026, seeks to strengthen the administration and governance of public senior secondary education across the country.
In his communication to the House, President Tinubu said the bill was approved by the Federal Executive Council at its meeting of 30 April 2026 before undergoing legal vetting and final drafting by the Federal Ministry of Justice in line with constitutional and legislative drafting requirements.
The President said the amendment forms part of his administration’s broader commitment to strengthening Nigeria’s education sector and appealed to lawmakers to give it speedy consideration.
Tinubu also transmitted the Administration of Criminal Justice Bill, 2026, which seeks to repeal the existing Administration of Criminal Justice Act (ACJA), 2015 and replace it with a new legal framework designed to tackle longstanding procedural, legal and institutional weaknesses within the criminal justice system.
According to the President, the proposed legislation is intended to improve the administration of criminal justice institutions, accelerate the delivery of justice, strengthen public safety and better protect the rights of suspects, defendants and victims.
He explained that the bill will apply within the Federal Capital Territory and federal courts while also strengthening the Administration of Criminal Justice Monitoring Council.
The proposed legislation addresses several persistent challenges associated with the 2015 Act, including delays in criminal investigations and prosecutions, limited use of technology in criminal proceedings, weak coordination among justice sector institutions, ineffective case management and inadequate monitoring of compliance with the law.
Among its major reforms are the abolition of trial-within-trial proceedings for confessional statements through new admissibility procedures, the establishment of a National Sex Offenders Register to be maintained by the Office of the Attorney-General of the Federation, the creation of a Witness Support Fund to facilitate prompt payment of witness expenses and the introduction of plea forms to simplify arraignment procedures.
The bill also proposes mandatory timelines for courts to determine no-case submissions, wider use of written witness depositions to speed up criminal trials, improved judicial case management, a restructured Administration of Criminal Justice Monitoring Council with broader stakeholder representation, the appointment of an Executive Secretary for the council, powers for the Attorney-General to issue implementation regulations and measures aimed at preventing repeated trials arising from the death, retirement or transfer of judges.
President Tinubu urged lawmakers to give the bill expeditious consideration.
Meanwhile, the President declined assent to the Chartered Institute of Purchasing and Supply Management of Nigeria (Amendment) Bill, 2026, citing constitutional and legal objections to several of its provisions.
While acknowledging that many of the proposed amendments were well-intentioned, Tinubu argued that certain clauses seek to confer regulatory powers on the institute beyond those provided by law.
According to him, provisions requiring organisations to report procurement appointments to the institute, imposing financial penalties on employers who appoint non-members to head procurement units, compelling organisations to notify the institute whenever procurement staff are removed, empowering the institute to initiate legal proceedings against non-members and authorising inspection visits to private organisations amount to unreasonable restrictions and exceed the institute’s statutory mandate.
The President maintained that the institute is not the statutory regulator of procurement practice in Nigeria and therefore lacks the authority to compel independent organisations to comply with such provisions.
He advised the National Assembly to address the identified concerns before returning the bill for presidential assent.
Tinubu also withheld assent to the Raw Materials Research and Development Council (Amendment) Bill, 2026, citing structural deficiencies and drafting errors.
According to the President, the bill failed to properly capture its principal objectives in its long title and contained drafting defects that must be corrected before it can receive presidential approval.
The House is expected to begin legislative consideration of the two executive bills in the coming days, while lawmakers are also expected to review the rejected amendment bills in line with the President’s observations before deciding on the next legislative step.
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