News
Telecom Industry Faces Revenue Drop Amid 41% User Decline
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
Abuja in panic mode as woman, her children burnt beyond recognition
An accident has claimed the lives of a middle-aged woman and her two children after the bus they were traveling in caught fire near Manderegi village, along the Abuja-Lokoja highway.
The incident, which occurred on an 18-seater commuter bus with registration number BGT 996 LG, left 12 other passengers with severe burns.
The bus was reportedly en route to Kogi State when it suddenly burst into flames.
Eyewitnesses reported that the victims were trapped inside the vehicle and burnt beyond recognition.
Officials of the Federal Road Safety Corps (FRSC) later evacuated the remains of the deceased and transported the injured to a hospital in Abaji for treatment.
Confirming the incident, the FCT Sector Commander of the FRSC, Mr. Muta’ah Chorrie, attributed the tragedy to the driver’s negligence.
According to Chorrie, the driver had stored a jerrican filled with fuel in the bus alongside passengers, which likely contributed to the fire.
He said, “Let me tell you, this is what we have been saying that there is danger in carrying extra fuel with passengers while traveling. We have been sensitizing motorists on this but some defiant drivers still carry them.’’
News
INEC presents certificates of return to Gov Aiyedatiwa, deputy
The Independent National Electoral Commission has presented certificates of return to Ondo State Governor-elect, Lucky Aiyedatiwa, and his deputy, Adelami Olayide.
The certificates were handed over in Abuja on Wednesday by the Supervisory National Commissioner for Ondo State, Prof. Kunle Ajayi.
This comes four days after INEC declared Aiyedatiwa the winner of the governorship election held on Saturday.
Representing the All Progressives Congress, Aiyedatiwa defeated Agboola Ajayi of the Peoples Democratic Party and 15 other candidates.
He won across all 18 local government areas of the state, polling 366,781 votes against Ajayi’s 117,845.
News
“Na your papa Family or Inheritance? – Nigerians React As Ndume Begs Senate To Allow Ifeanyi Ubah’s Widow To Replace Him in senate
Some Nigerians have queried the lawmaker representing Borno South, Ali Ndume, who pleaded with the Senate to allow the widow of the late Senator Ifeanyi Ubah to replace him as the representative of Anambra South Senatorial District.
Recall that Ndume had argued that it is necessary to preserve Ubah’s legacy and aspirations through his family.
Ndume made the appeal during the Valedictory session held on Tuesday in honour of the late senator.
Citing historical precedents, Ndume argued that such a move would honour the late senator’s contributions to the Senate and ensure continuity in representing his constituency.
However, Ndume’s suggestion earned him criticism from Nigerians, questioning if political offices are hereditary or family property.
@chimm_di wrote: “I don’t understand… succeed him as per? His property or family inheritance? This country sev”
@orefolayan wrote: “Is the Senate seat a Monarchy? Which one be “succeed him”?”
@kelvin_hartz wrote: “A widow that should be m0urning her husband.”
@adumaadand6 wrote: “So we are now practicing a hereditary monarchical system of government in the Senate? Is it a family heirloom that needs to be inherited? What exactly is going on in this country? Who deemed her worthy to decide our fate in this country? Are we using sentiments now? Why can’t she go through the same process other senate went through? Be voted for. Did the people she wants to represent them say they want her? I’ve so many questions cos this is just something else”
@101fred wrote: “Naija de turn family business small small . People now inherit government positions… hmmm”
@innocent wrote: “That you guys in the North and soon Lagos are now treating elected political positions as family inheritance which is why El rufai and so on have their families and kids in Federal Political offices. It does not mean South East tolerates such. Keep your monarchy system of government up there to yourselves.”
@augustine_vivian wrote: “So politics in Nigeria has suddenly becomes family HERITAGE”
@meyer7xxx wrote: “It’s not a thing of competence, it’s a family business and they are no longer bothered dishing it out in our faces”
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