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Telecom Industry Faces Revenue Drop Amid 41% User Decline
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With the average revenue per user (ARPU) falling 40.87 percent to $1.85 in Q3 2024 from $3.12 in the same period previous year, Nigerian telecom businesses’ financial performance has suffered a seriousu hit.
This drop demonstrates the negative impact of the depreciating naira on the sector, as telco profits are still being squeezed by inflation and growing currency rates.
In Q3 2024, MTN Nigeria’s ARPU dropped to $2.09 from $5.03 in Q1 2023, when it was the highest-performing MTN Group company. A steep decline was also seen by Airtel Nigeria, which saw its ARPU drop from $3 in 2023 to just $1.60 in the third quarter of 2024.
Both firms’ revenue growth has been impacted by these declines; MTN’s service revenue increased by 33.6 percent in naira but had a steep decline when converted to dollars, while Airtel Nigeria had a 46.87 percent drop in revenue to $755 million.
Due to the Central Bank of Nigeria’s unification of the foreign exchange market in 2023, the naira’s decline has resulted in significant foreign exchange losses for telcos, which has raised operating expenses and contributed to Nigeria’s record-high inflation.
Telecom businesses’ finances are under increasing strain due to the skyrocketing cost of energy, with diesel prices having increased by 90%. The first nine months of 2024 saw an almost 96 percent increase in MTN’s operating expenses, while Airtel has experienced a similar strain.
Both businesses have responded by cutting back on their investments; MTN has done so by about 28%, while Airtel has done so by more than 36%. Telcos are renegotiating contracts with tower providers and exploring renewable energy solutions to lessen their reliance on costly diesel in an attempt to offset rising expenses.
Without significant price increases or a change in operational tactics, telecom companies might still experience financial difficulties, according to industry experts. According to MTN Nigeria CEO Karl Toriola, “pricing is needed for survival,” highlighting how urgent it is that the industry handle the mounting financial strain.
News
Reaction as portal shows NDC candidate’s picture, opponent name
A leader of the Nigeria Democratic Congress and former Chief Whip of the Senate, Sir. Rowland Owie, has expressed dissatisfaction over the change of the name of the party’s candidate for the Edo South senatorial district in the 2027 general election.
The Independent National Electoral Commission portal had the picture of Sunny Aguebor as the senatorial candidate while it had the name Epelle-Asemota Bridgitte Osayuki as the candidate.
Reacting to the development in a telephone interview, Owie said Aguebor emerged as the candidate of the party in a primary election monitored by the INEC and alleged that a national officer of the party may be responsible for the current development.
Owie declared the development as fraud that would not stand, noting that Aguebor is the Edo South Senatorial candidate.
He said, “The truth is fraud cannot stand. The duly nominated candidate for Edo South NDC is Sunny Aguebor.
His primary election was monitored by the INEC and we have the CTC of his nomination from INEC.
“The party uploaded the information to INEC portal. What they were trying to do is to put that lady’s name but they couldn’t remove Aguebor’s picture.
“Whoever did it is a criminal, it is because we want peace in the party otherwise such a person should have been arrested. It is a criminal act. The NDC is a corrective party, we can’t be part of fraud.
“We have written to the INEC to make the necessary corrections. The person behind the fraud is a leader in the South South and we can get him arrested for forgery.”
When contacted, the state chairman of the party, David Olukoga said the party was still working with the INEC over the issue.
“Those are social media issues, when we are ready, we will publish our lists, we are not done with INEC, when we are done, they will give us our list and we will publish them,” he added.
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Attacks: Kebbi gov convenes emergency security meeting
Kebbi State Governor, Dr Nasir Idris, on Wednesday convened an emergency security meeting to review the security situation in the state and strengthen measures aimed at addressing emerging security challenges in some communities.
The meeting, which brought together key security stakeholders, focused on reviewing and reinforcing existing security strategies to ensure a more coordinated and effective response to threats across the state.
Briefing journalists after the meeting, the Commissioner for Home Affairs and Internal Security, Haliru Wasagu, said the governor called the meeting as part of his administration’s commitment to protecting lives and property and sustaining peace across Kebbi State.
According to Wasagu, the discussions centred on fine-tuning the state’s security architecture and enhancing collaboration among security agencies to improve operational effectiveness.
“Our governor is fully committed to flushing out criminal elements and dismantling their hideouts. Anyone found engaging in criminal activities will face the full weight of the law,” the commissioner said.
He added that Idris had continued to intensify efforts to maintain peace, law and order, assuring residents that the government would not relent in confronting all forms of criminality.
Wasagu also appealed to residents to support security agencies by providing timely and credible intelligence capable of aiding the identification, arrest and prosecution of criminal elements.
“If members of the public remain vigilant and work closely with security agencies, the fight against crime will be more effective,” he said.
The commissioner further commended security personnel operating in the state for their dedication, professionalism and sacrifices in ensuring peace, stability and public safety, assuring that the state government would continue to support their operations.
News
Kano nabs fake health workers running illegal outreach
The Kano State Ministry of Health, in collaboration with the Private Health Institutions Management Agency, the Kano State Centre for Disease Control, and the Kano State Police Command, has arrested some suspects allegedly conducting an illegal medical outreach in Panshekara, Kumbotso Local Government Area, as part of ongoing efforts to protect the health and safety of residents.
The Public Relations Officer of the Ministry of Health, Nabilusi Abubakar, confirmed the arrest of the suspects in a statement on Wednesday.
According to the statement, the arrest of the suspects followed credible intelligence received from vigilant members of the public regarding the unauthorised medical activity.
“We acted immediately upon receiving the report. A joint team from the Ministry of Health, PHIMA, and KNCDC was deployed to the location, leading to the arrest of the suspects.
“We subsequently contacted the Kano State Police Command, and the suspects are currently in police custody at the Bompai Headquarters for further investigation,” the Commissioner for Health, Abubakar Yusuf, was quoted as saying.
Yusuf explained that the suspects were found operating under the name Brother Paul Legacy Foundation, a purported non-governmental organisation, where they were distributing registration cards bearing the organisation’s name and collecting money from unsuspecting members of the public under the guise of providing medical services.
He further revealed that preliminary investigations conducted by officials of the Ministry of Health, PHIMA, and KNCDC established that the mastermind and the other suspects were neither qualified health professionals nor possessed any recognised health-related certification.
According to the commissioner, the registration cards issued by the suspects, which bear an address in Karu Local Government Area of Nasarawa State, falsely promised “free treatment” in an apparent attempt to lure unsuspecting victims into the illegal operation.
Yusuf urged residents to remain vigilant and refrain from patronising unlicensed individuals or self-acclaimed healthcare providers, emphasising that medical services should only be sought from government-approved health facilities and duly licensed healthcare professionals.
He also commended the state police command, under the leadership of the Commissioner of Police, Ibrahim Bakori, and his officers for their decisive intervention.
He further commended the public-spirited individuals whose timely report led to the arrest of the suspects, describing their action as a demonstration of the vital role citizens play in safeguarding public health.
The commissioner called on members of the public to promptly report any suspicious or illegal medical activities to the appropriate authorities, reaffirming the Kano State Government’s unwavering commitment to eliminating quackery, protecting lives, and ensuring that healthcare services across the state remain safe, ethical, and professionally regulated.
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