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Financial health and Quality of Service by Network Operators
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By Sonny Aragba-Akpore
In March 2024 Mobile Network Operators (MNOS) lamented losses of revenue when services were negatively impacted as they suffered internet outage due to damage to some fibre optic cables.
Earlier in 2023 alone, MTN Nigeria suffered more than 6,000 cuts on its fiber cable. The operator relocated 2,500 kilometres of vulnerable fiber cables between 2022 and 2023 at a cost of more than N11bn —enough to build 870 kilometres of new fiber links in areas without coverage.
In August 2024 ,Chief Executive Officer of Airtel Nigeria, Carl Cruz, while speaking during an industry forum, said the telecom company had been recording an average of 1,000 cases of fibre cuts every month.All of these cost money and avoidable losses of revenue.
Both operators which are believed to be dominant service providers suffered a series of setbacks so much that even some of their Mobile Switching Centres (MSCs) and Base Transceiver Stations (BTS) were also affected thus creating negative impact on Quality of Service (QoS).
While they swallowed the bitter pills of trying to resolve the infrastructure issue,some of them have not been able to meet the QoS threshold effectively,as expected by industry regulators,the Nigerian Communications Commission (NCC).
> Globacom Limited and 9mobile ,though not publicly quoted ,have no figures available in the public space on their financial losses but both too have suffered losses in that regard.
Each of the four MNOs has suffered incalculable losses so much that these have affected QoS and while subscribers groan over the poor quality of service and depleting data in the face of unavailable network and where available in poor coverage especially in some areas of the country, the operators appear helpless.
Vandalism by miscreants is another cross many operators bear.
There are also frequent instances of official high handedness by certain categories of government officials who are empowered by cruel legislations to go after operators for payments on Right of Way (RoW) fees and illegal taxes not known to any law.And the operators have had to contend with these too.
And so the operators are trapped inescapably between the vandals and government officials.The subscribers suffer in all of these.
In all of these,the subscribers swallow the bitter pills as they are made puns in the vicious cycle of the gods-vandals,none state actors and regimented state and local government officials riding on crooked legislation to fleece the operators.
Apart from frequent harassments operators encounter in the hands of vandals and alleged unscrupulous government officials at state and local council areas across the country,there have been reported cases of revenue losses sustained by the operators through the burden of high operational expenditure.
Some of them have even lost millions of subscribers in the last 20 months so much that these have led to dwindling revenues.
For instance in the first eight months of 2024, Globacom Nigeria experienced a significant loss of 42 million active subscribers, representing a 73% reduction thus losing its market share by moving from number two to three on the subscriber chart.
While the telecommunication sector in Nigeria has shown resilience, Globacom’s subscriber decline is worrisome.
By pioneering per-second billing—unlike the ₦50-per-minute norm—it immediately disrupted the market, forcing rivals to return to the drawing board to rejig their billing templates.
“If per-second billing was a game-changer for the industry, Globacom pulled off another stunt in October 2004 by offering free Subscriber Identification Modules (SIM) cards—at a time competitors were selling theirs for ₦2,000 per SIM card.
“This too rocked the market with aggressive price war and inspite of its late market entry status ,Globacom backed it with hefty marketing campaigns, signing Nigeria’s biggest celebrities as ambassadors” according to an analyst.
MTN Nigeria reported a N400 billion post-tax loss in 2024, marking a significant financial setback. “
But the company bounced back last week when it announced a profit after tax of N133.7 billion for first quarter (Q1) ended March 31, 2025, from a loss of N392.7 billion declared in the first quarter of 2024. MTN announced a total revenue of N1.06 trillion, representing an increase of 40.5 per cent from N752.96 billion in Q1 2024.
The telecommunication giant listed on the Nigerian Exchange Limited (NGX) said it invested N202.4 billion in Q1 2025, a 159 per cent increase year-on-year, to upgrade and expand network infrastructure, enhancing service quality and capacity.
Airtel Africa reported a loss after tax of $89 million for the full year ended March 2024. This loss was primarily attributed to foreign exchange (FX) headwinds in Nigeria and Malawi. Airtel Nigeria’s revenue also fell by 40.34% to $738 million in 2024, mainly due to the devaluation of the Nigerian naira.
Despite the revenue decline, data usage per customer in Nigeria increased by 37.2% accounting for 8.4 Gigabyte (GB)per month.
Airtel has a subscriber base of 56.6 million, as the second largest operator by numbers.
To mitigate further foreign exchange induced losses, MTN and Airtel cut FX liabilities.
MTN Nigeria slashed its outstanding letters of credit (LC) dollar obligations from $416.6 million as of 31 December 2023 to $20.8 million by the end of 2024.
Airtel Africa, on its part, repaid $739 million in foreign currency debt over the last year, reducing its foreign currency debt exposure.
Both companies believe that reducing their foreign currency obligations is key to strengthening their financial positions.
With over 10 million of its subscribers lost to other networks out of its 13m subscribers base,and a desperate quest for $3billion loan to stay afloat,9mobile is clearly in the Intensive Care Unit (ICU) of the telecommunications sector.
Its pathetic situation is almost beyond redemption after it managed to scale through its initial hiccups as a result of over a billion dollar debt Overhang to a consortium of Nigerian banks.
It survived through the interventions by the NCC and the Central Bank of Nigeria (CBN), which offered a reprieve for new owners to take over.
It rebranded from Etisalat to 9mobile with a lot of promises which later turned out to be
mere pipe dreams as the company is now comatose.
Its now on the bottom of chart.
Its new management led by Obafemi Banigbe is shopping for over $3 billion in investment to rejig its services in the face of internal wrangling of shareholders.
“9mobile is also facing issues from competitors, especially Globacom, as regards its spectrum lease agreement with MTN.”
A telecom analyst explained last week that “the spectrum lease agreement,was framed in the form of infrastructure sharing, where 9mobile could make use of MTN’s wave bands, where it has no coverage , and MTN can also do the same.”
But in order to cushion the serial losses sustained by operators,the government approved a tariff hike in March 2025 by about 35% down from the 100% the operators proposed initially.
Industry regulators the NCC,
in January this year, approved the request by telecoms operators for tariff adjustments in the telecoms industry.
It announced a 50 per cent increase in telecoms tariff.
But the Nigerian Labour Congress ( NLC) resisted this and took its protests to the Office of National Security Adviser (ONSA) which called a tripartite meeting of his office ,labour and operators after which the tariff was pegged at 35%.
“Telecom operators had requested for 100 per cent hike in telecoms tariff for industry sustainability, which was rejected by different groups of telecoms subscribers, who felt that any increase would impose further hardship on the subscribers.”
The NCC riding on its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators, approved tariff adjustment requests by Mobile Network Operators (MNOs) in response to prevailing market conditions.
The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by network operators, was arrived at, taking into account ongoing industry reforms that will positively influence sustainability.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024”the NCC said.
But will the adjustment make any difference to the myriad of problems in the industry especially with declining purchasing powers and general apathy of subscribers?
>> Will the NCC re-examine the financial health of the operators in a wobbling economic environment?
There are far more questions than available answers.
>> Time alone will tell.
News
Reps Unveil Final Constitution Amendment Bills, Set for Crucial Vote on State Police
…security, electoral reforms, devolution of powers among key proposals
By Gloria Ikibah
The House of Representatives has released the final version of the Constitution Alteration Bills ahead of a decisive vote scheduled for Thursday, signalling a major step in the ongoing effort to reshape key aspects of Nigeria’s constitutional framework.
The proposed amendments, which are expected to come before lawmakers during plenary, are the product of months of consultations, public hearings and stakeholder engagements conducted across the country by the House Committee on Constitution Review.
According to the House, the bills emerged after extensive consideration of proposals submitted by lawmakers, government agencies, professional bodies, traditional institutions, civil society organisations and ordinary Nigerians.
The review process included zonal and national public hearings, expert sessions, consultative meetings and town hall engagements held across the six geopolitical zones to gather public input on critical constitutional issues.
The bills cover a wide range of national concerns, including electoral reforms, judicial reforms, security and policing, local government administration, devolution of powers, fiscal reforms, human rights, citizenship, traditional institutions, legislative matters and the creation of states and local governments.
At the centre of public attention is the proposal seeking constitutional backing for the establishment of state police, a reform that has generated intense debate and attracted widespread support and opposition across the federation.
The proposed legislation seeks to create an additional layer of policing within Nigeria’s security structure while providing constitutional safeguards, operational guidelines and oversight mechanisms to define the relationship between federal and state policing authorities.
The House said the proposal reflects growing national calls for more localised and responsive approaches to tackling insecurity.
Speaking on the release of the final draft, the Deputy Speaker of the House of Representatives and Chairman of the House Committee on Constitution Review, Rt. Hon. Benjamin Kalu, described the development as a significant milestone in the constitutional review process.
According to him: “The release of the final print of these Constitution Alteration Bills reflects the extensive consultations, careful scrutiny, and bipartisan collaboration that have characterised this reform process. These proposals embody the aspirations, concerns, and recommendations expressed by Nigerians from all walks of life.
“Of particular significance is the proposal on State Police, which responds to longstanding calls for a more effective and decentralised policing framework capable of addressing emerging security challenges across the federation. As the House prepares to vote, we remain guided by our constitutional responsibility to strengthen democratic governance, deepen federalism, promote inclusion, enhance security, and build institutions capable of meeting the demands of a modern and prosperous nation.”
The House is expected to vote on the bills during plenary on Thursday, provided the constitutionally required quorum is achieved. If the required number of lawmakers is not present, consideration of the amendments will be postponed to the next legislative sitting in line with constitutional provisions and House rules.
The House leadership reiterated its commitment to an open and transparent constitutional review process, expressing confidence that the proposed reforms would strengthen democratic institutions, improve governance, promote national unity and respond to the evolving aspirations of Nigerians.
News
SEDC Clears Air on Spending as Senate Review Continues
…says no fund paid for Enugu headquarters rehabilitation, pledges full disclosure of records by June 23
By Gloria Ikibah
The South East Development Commission (SEDC) has reaffirmed its commitment to transparency, accountability and full cooperation with the National Assembly, following its appearance before the Senate Committee on the South East Development Commission.
In a statement issued on Tuesday, the Commission said it used the oversight session to provide detailed briefings on its finances, operational activities, procurement procedures, institutional growth, strategic partnerships and ongoing programmes across the South-East.
According to the Commission, the Senate Committee requested additional documentation relating to certain aspects of its operations and expenditure. It said it welcomed the request and sought a short period to compile and submit the required records.
“Following discussions, proceedings were adjourned to a later date pending submission of the requested documents, which the Commission will provide on or before 23 June 2026,” the statement said.
The Commission also addressed issues that have generated public discussion in recent days, particularly expenditure linked to its Abuja Liaison Office and references to what has been described as “implied expenditure”.
Abuja Liaison Office Explained
SEDC said the expenditure associated with its Abuja Liaison Office covered the establishment and operation of a fully furnished office at the Congress Building in Maitama, Abuja.
The Commission explained that the facility serves as its operational base for engagements with the National Assembly, federal ministries and agencies, development finance institutions and strategic partners.
“The expenditure cited reflects the cumulative cost of establishing and running the office since its inauguration on 11 February 2025 to date, covering rent, operational costs, utilities, and basic fit-out works across that entire period”, the statement read.
The Commission added that its board and management remain committed to relocating to its designated headquarters in Enugu as soon as possible.
According to the statement, rather than incur the cost of acquiring a new property, the Commission secured the transfer of an existing building from the Enugu State Government and entered into an agreement with the state to accelerate rehabilitation works and facilitate its relocation.
Clarification on ‘Implied Expenditure’
Responding to reports about so-called “implied expenditure”, SEDC said the references relate to a contract awarded for the rehabilitation of its future headquarters in Enugu.
The building, it noted, was transferred by the Enugu State Government but requires extensive work before it can serve as the Commission’s permanent headquarters.
It further clarified that the expenditure being discussed represents approved financial commitments rather than actual payments.
“The contract was awarded in accordance with the Public Procurement Act 2007, following approval by the Bureau of Public Procurement and the concurrence of the supervising ministry.
“These commitments represent budgeted obligations that have been lawfully committed but not yet disbursed, consistent with established public sector financial management practice. To be precise: this money has not left the Commission’s accounts,” the Commission stated.
Capital Funds Yet to Be Released
SEDC disclosed that it has not received any funding from its capital budget allocation.
Despite this, it said efforts have continued to advance strategic development initiatives across the region while laying the institutional groundwork required for future project implementation.
The Commission noted that spending so far has focused on two key areas: building its operational structure and advancing project development activities that would ordinarily be financed through capital releases.
“It is worth recalling that the Commission received its first disbursement of funds after more than ten months of being in existence,” the statement further said.
The Commission explained that institutional expenditure has included payment of staff salaries and arrears, training for seconded personnel, establishment of operational offices in Abuja and Enugu, and procurement of essential information and communications technology infrastructure.
Project Development and Regional Initiatives
On programme implementation, SEDC said it has financed feasibility studies and due diligence exercises for priority regional projects, including a proposed gas infrastructure partnership with significant economic and industrial implications for the South-East.
The Commission also highlighted its participation in the Intra-African Trade Fair in Algeria, which it said has opened discussions with Afreximbank on establishing a Project Preparation Fund aimed at reviving dormant industries across the region.
Other initiatives cited include the South East Vision 2050 Stakeholder Forum and the South East Venture Capital Programme.
According to the statement, the venture capital initiative has already provided investment support to 25 start-ups drawn from across the South-East.
Records to Be Submitted
SEDC assured the Senate Committee that comprehensive records would be submitted before the next hearing.
Reiterating its commitment to openness and accountability, the Commission said it remains focused on its mandate of driving economic transformation, infrastructure development, investment mobilisation and regional prosperity across the South-East.
“The Commission will submit comprehensive documentation, including procurement records, contract details, payment schedules, and supporting financial records, to the Senate Committee on or before 23 June 2026.
“The Commission remains focused on that mandate and is confident that a full review of the facts and supporting documentation will provide a complete picture of its activities and stewardship of public resources,” the statement added.
News
Sparks Over ‘Cognate Legislative Experience’
By Gloria Ikibah
Proceedings grew animated during debate on a motion by Rep. Jimi Benson seeking a precise definition of “cognate legislative experience” in the House Standing Orders.
Presenting the motion, Benson said the aim was to strengthen institutional memory and ensure experienced leadership within the chamber.
“The House notes that Order 7, Rule 15… states that only members with cognate legislative experience as members of the House of Representatives shall be eligible for appointment as principal officers of the House,” he said.
He added that global parliamentary best practice supported reserving principal offices for seasoned lawmakers to promote continuity and competence.
“The House resolves to define cognate legislative experience as meaning members who have completed at least one full four-year term.
“Resolves to state unequivocally that there is no other definition to the term cognate legislative experience other than as stated”, he stated.
While the motion was seconded and adopted by voice vote, some members raised concerns about its necessity.
Rising on a point of order, Rep. Bob Solomon argued: “Order 7, Rule 1, Sub-Rule 10 has already conferred on you the power to interpret the rules. You are there as an arbiter. This motion is totally redundant.
“What it means is that we are amending our rules for you to be able to exercise that power… You are in the position of a judge, an arbiter. What you say about the rules is final.”
In response, the Speaker maintained that once a question had been put and decided, it could not be revisited.
“After hitting the gavel, we cannot revisit any issue that has already been put to question,” he ruled, drawing the matter to a close.
With the day’s agenda concluded, the House adjourned after setting in motion legislative processes that could reshape price regulation, military pensions, and internal parliamentary governance.
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