Opinion
WAS IT THE BANKERS WHO TOOK AWAY OUR DOLLARS?
By Segun Sanni
Nigeria is a peculiar place where those who know absolutely nothing about a topic would be making outlandish claims on the topic with supreme confidence that would make even a subject matter expert green with envy. To this nameless author that made the rounds all over the social media in the past week, 99% of bank MDs and executives are thieves and they are the ones behind the ongoing economic and currency crises bedeviling Nigeria. He obviously took his cue from a similar erroneous claim by elder statesman, Chief Bode George, to the effect that bankers were the ones behind the collapse of the Naira. He even mentioned some names to personify the object of his anger but with tremendous respect, Baba only waxed very angry and emotional, pretty much symptomatic of the current mood in the land, widespread anger at the government and at anyone perceived to either contribute to or is not/less affected by the spreading hunger and general hardship in the country. It would not occur, neither matter, to them that bankers are not exempted from the national calamity and they almost compete in number with doctors, nurses and other healthcare professionals on the Japa exodus queues. But back to Baba George, he did not make ANY single valid charge against Wigwe or the other bankers that he mentioned in his diatribe, and I will try quote him verbatim:
“Emefiele, Elumelu, Adeola…all of them, stupendously wealthy now! Wigwe, who became MD of Access Bank immediately the other young man left, has now established a university. He has the temerity to be advertising that university on CNN. Wigwe University! That’s personally established by him! Where’s the money? Where’s his factory??Access Bank! What is the practice? They release dollars to them on monthly basis. They use the dollars! If it’s at 1 to 100, they will get it through the Mallam to say 1 to 200. You see that profit, what do they do with it? Who are the commercial people that really need it and get it? Most people get back to the Mallam to buy dollars. You hardly would get from the bank unless you are…Is that commercial activity?? So, what they had done to this nation, they must all be invited for discussion because the rottenness started from there, and it’s been going on for years! But it has exploded now on our faces!…”*
And let us do the analysis: a man who had a strong passion and track record for excellence came out and said he wanted to establish a world class university with international standard facilities and top notch foreign professors and university administrators to attract students from Nigeria and other African countries who ordinarily would have been targeting European and American universities. And we knew this guy to be an unbeatable go-getter who had the uncommon grace to achieve virtually all he set his sight on, where should we expect him to advertise the culmination of his dream project and to invite students? On Radio OYO or LTV Channel 8??? We’re so used to things not working around here that we forget this school could be, or could have been, a major source of pride, prestige, foreign exchange, profit and academic prowess to our country! Are we aware of how much revenue and foreign exchange British universities attract to Britain every year? Recently, I read a report that British universities made £5.4bn from overseas students in 2015-2016 academic session (one session) but the same figure had grown 71% to £9.7bn (about N20 Trillion which would equal Nigeria’s one year debt-funded budget) by the 2021-2022 academic session, amounting to 21.5% of all incomes earned by the universities in the same year. This is a huge source of income/liquidity aside the attendant spillover effects on housing, food, tourism and general aggregate demand in the economy from the influx of international students. Why do we believe we cannot replicate the same here, at least from within the African region?? Are we going to reach Africa through NTA Channel 7?
Now back to Baba’s charges: 1. That bankers make their profit from selling and round tripping foreign exchange! 2. That Nigerians don’t get dollars to buy in the banks bcs the bankers have sold the dollars to Mallams??? Haba!!! Do you know of any industry that is as strictly monitored and regulated in Nigeria as banks?? If you know one that comes close, please mention it here. The Central Bank has a whole Banking Supervision (and Examination) Department, headed by a Director and a coterie of banking experts and auditors whose jobs would also be on the line should they fail to spot and report any infractions or violations or red flags which later became an issue or got discovered after their visit. CBN is almost overbearing on the banks and is always on their backs, issuing circulars and directives with threats and actions of serious penalties and consequences should there be a violation. Some in our midst think the CBN just allocates dollars to the banks to disburse as they deem fit and the banks then take the dollars to the Mallams. But that is not how things work. Every dollar that the CBN releases to the banks is backed by an actual transaction with a customer completing and signing the forms (sometimes electronic forms) and with the funds released directly to the eligible destination depending on the nature of the transaction. Every dollar the CBN releases to the banks is tied to a customer request and can be easily traced and confirmed in the customer’s account. And the customer’s foreign exchange transactions can be traced across all the banks because the accounts are all connected to a BVN.
From the above, the allegation that Nigerians don’t get dollars from the banks is a very false and unfair allegation. There was no big problem with dollar funding for eligible transactions until our economy was grounded by serious mismanagement and dollar flows dried up in the economy. It is not the making of the banks. The banks do not print or manufacture dollars. Is there anyone here who travelled abroad three to four years ago and couldn’t buy PTA dollars from his banker and had to buy from Mallams?? Is there anyone here whose child attended school abroad up till about four years ago and didn’t get dollars/Pounds from the banks and had to buy from Mallams?? Is there anyone here whose business opened an LC up to four years ago and whose bank would not remit the FX and had to buy from Mallams?? It was only recently that the sh.t hit the fan and the utter mismanagement and complete grounding of our economy became a crisis where the system ran out of dollars. The fact is that the system ran out of dollars, and not that the bank MDs gave the money to Mallams.
The question of “where is your factory?” is a rather old fashioned, almost archaic, way to look at business and wealth in today’s world. In the years leading to the 18th to early 19th centuries, farming was the way to make money for most people and the guy who had the biggest farm and the most number of people on his farm was the wealthiest guy, and that was the main reason behind inter tribal warfare and slavery, the quest for manpower. Later on from around the 1820s, the engine was (re)invented and there resulted the Industrial Revolution. With that came the tractors, etc and the resultant less need for human hands (a tractor would do in thirty minutes what hundred men would do on a farm in a whole day). That was one of the big reasons behind the abolition of slave trade. And with the Industrial Revolution came a new need, the need for large scale raw materials to feed their factories, and that was the big basis for colonialism and the Partition of Africa.
The rich people were then the industrialists, those who owned factories. Those were the days of the Rockefellers (oil), the Carnegies (steel), the Fords (automobiles), the Vanderbilts (rail and shipping), etc. And after the World Wars and with the emergence of economic and political stability, the global population grew tremendously and the products and services to sustain the large populations were then the focus. And that is the background to the question of “where is your factory?” whenever they would investigate how people made money. The industrialists were the champions of those days, just as the plantation owners before them, but the world has evolved and the needs of the ever growing world population have also evolved. Technology (including telephony), banking and logistics have emerged very strongly and have become the dominant businesses in today’s world. As at 1990, the 20 largest global companies were:
1 General Motors
2 Ford Motor
3 Exxon Mobil
4 Intl. Business Machines (IBM)
5 General Electric (GE)
6 Mobil
7 Altria Group
8 Chrysler
9 DuPont
10 Texaco
11 ChevronTexaco
12 Amoco
13 Shell Oil
14 Procter & Gamble
15 Boeing
16 Occidental Petroleum
17 United Technologies
18 Eastman Kodak
19 Marathon Oil
20 Dow Chemical
Source: S&P 500.
But the tech companies have taken over in the past decade. Today, the tech companies are the global giants. The top ten largest companies in the world in 2020 are:
- Apple Inc
- Microsoft Corp
- Alphabet Inc
- Amazon
- Berkshire Hathaway Inc
- Ali Baba Group
- JP Morgan Chase
- Tancent Holdings Limited
- Visa Inc.
These are mostly new/young companies which came in and took centre stage way beyond the global players of the past.
In most countries of the world today, the largest companies are the tech companies, the phone companies, the banks and the oil companies, not the factories.
In all of history, an economic crisis always leads to mass anger, resentment and frustration with the government, the wealthy and even with many in the middle class. Baba is only expressing similar frustration but those of us who know should not join in those claims which have no foundation at all. How can anyone claim to miss the obvious and unusual entrepreneurial passion, courage and the can-do spirit bristling in and driving Herbert and Aig? How can one imagine it’s CBN’s FX that would be behind a Nigerian bank being one of the largest banks in Africa and building sizable subsidiary businesses in the UK, US and China aside its tentacles in the African continent?? Even if all of Nigeria’s meagre FX was given to Access Bank alone, how much would that amount to?? If that was how easily CBN dollars were available for banks to corner and make huge profits upon, why have we had so many bank failures in Nigerian history? Are you aware that many more banks have failed in Nigeria than survived?? Or dollars just became available in the banks when Herbert and Aig set up their bank?
Now please note, young folks are also operating and making waves in the Fintech world today, the Flutterwaves of this world. They’re filling a gap and rendering much needed payment services and are making good money, legitimately. We better get used to them and pray that our children be like them and the successful clean bankers.
I pass no judgment on the Access-Intercontinental Banks acquisition issue which has also been beaten to death in the social media since Herbert died. I have not the full details to make a fair judgement, but on this claim that it’s banks not allowing you to get dollars, I say fa…fa…fa…foul, in the voice of Pa Zebrudayah Nwogbo, alias 430. 😀😂
And if you care to know what led us to where we are, they’re three or four main things. Let me quickly summarize them:
- The last government borrowed huge sums of money domestically and internationally. We mostly don’t know what the loans were spent upon. Nigeria is currently spending over 50% of dollars accruing to us on servicing the debts that we cannot account for.
- Unprecedentedly large volumes of Nigeria’s oil was stolen between 2021 and 2023. At a point, we were losing up to 1m barrels of oil DAILY with the government not raising any alarm and with no one arrested so far. Dollars were not coming in to Nigeria bcs the remaining oil that was not stolen, NNPC took the proceeds as “petrol subsidy” recovery.
- From the above, the government started printing/taking illegal empty money from the CBN, money that merely expanded the monetary base and was not backed by any production. At the last count, over N25 Trillion was so printed. Our leaders apparently did not watch “The Rise and Fall of Idi Amin” in the 1970s. How can we repeat this error in today’s world??
3a. This primarily is the source of the serious inflation that we’re experiencing in Nigeria apart from food shortages arising from weather and insecurity.
3b. In a staggering error that begs for explanation, the CBN kept trying to tackle the inflation by raising the interest rate rather than cut the source of the problem, the illegal money being printed for the government. This raised interest rates for the productive sectors of the economy and crowded them out of the loans market.
3c. The illegal money so printed and which expanded the monetary base (money supply) of the economy is also joining other (existing) monies to chase for fx (some even allege the politicians are using the empty money to buy FX). - In continuation of the reckless borrowing and spending which defined the last government, they had also taken loans and pledged future oil production as payment source. So, much of the oil we’re producing today, the money is not coming in as it is being used to service those debts.
Numbers 1,2 and 4 above contributed to deplete our foreign reserves while number 3 led to/aggravated inflationary and fx pressures. For the first time in history, oil prices have been high in the past two years since Putin attacked Ukraine but Nigeria is broke in the period of oil boom. Unprecedented but it is what it is.
From the above, do you still think it’s the banks taking your dollars and selling them to Mallams?? Why is CBN not arresting them and flooding the market with dollars?
Please ‘hep’ me ‘on’ television make I watch Pa Zebrudayah. 😂
-Segun Sanni is an ex-banker and trouble maker in the Ibadan-Lagos axis of political and economic conversations. 😂
Opinion
PDP NAT’L CHAIRMANSHIP & THE DELUGE OF ENGR UTAAN’S ENDORSEMENTS
By Sunday Bamidele
The race for who emerges as the next National Chairman of Peoples Democratic Party (PDP) is gradually reaching a crescendo as the party is getting ready for its National Executive Committee (NEC) this month. Since the substantive PDP National Chairman, Senator Iyorchia Ayu was suspended by his ward officials and the court subsequently upheld his removal, the Deputy Chairman North of the party, Umar Damagum has been acting in that capacity.
The North Central region of the country, particularly Benue State has made a strong and convincing case that the seat of National Chairman of the PDP should be retained in the area where Dr. Ayu hails from. This argument is backed by relevant sections of the PDP constitution.
The position of the Benue State chapter of the party is incontestable! Ayu’s term has to be completed by someone from his place.
In Benue State, a competent, proactive and dynamic young leader has emerged as the popular choice and has made a bold and irresistible bid for the job. He is Engineer Conrad Terhide Utaan, a seasoned professional Engineer, administrator and politician with a bent of integrity and excellence.
Utaan, 47, is not only competent but has youth and energy as attributes to help the PDP connect with the country’s largest voting demographic—those aged 18 to 50, who make up over 72% of the electorate.
Utaan recently held favourable consultations with the PDP Zonal Executive Committee of the North Central who appeared to have positioned him as the right candidate for the party’s national chairmanship. And what is more? – zoning and micro-zoning principles within the party also favour Utaan, thereby making him the right candidate for the role, as Benue State’s North West District deserves representation.
Utaan’s candidacy has garnered significant support, with many party faithful hoping and believing that he has what it takes to bring unity and progress to the PDP, close its ranks and return the party to the pathway of election victories.
The last few months have witnessed a flood of endorsements of Engr Utaan by different blocs in the PDP across the land. The wide acceptance of the former State Focal Person of Social Investments Programme (SIP) in Benue State began with chairmen of the PDP in the 23 Local Government Areas (LGAs) of Benue State who unanimously endorsed Utaan as the sole nominee to replace Dr Ayu as the National Chairman of the party.
During a press conference held in Makurdi, the PDP LGA chairmen declared their collective decision to support Utaan, emphasizing that their choice reflects their commitment to ensuring that the laws of the party are upheld above individual and group interests.
“It is our considered opinion that in continuation of, and fulfillment of the decision for equity, fairness and justice, a candidate from Zone ‘B’ of Benue State be the one to replace Dr. Iyorchia Ayu as National Chairman.
“And having considered the fact that there is only one aspirant from the Benue Zone ‘B’ Senatorial District in the race to replace Dr. Ayu, we take the stand that the candidate be accorded the privilege of being the SOLE NOMINEE of the PDP from Benue State to replace Dr. Iyorchia Ayu as National Chairman.
“Therefore, in fulfillment of our civic duty as Chairmen of the PDP in the 23 Local Government Areas of Benue State, we individually and collectively openly and publicly today, Wednesday, 9th October, 2024, endorse that sole candidate from Benue Zone ‘B’ in the person of Engr. Conrad Terhide Utaan as the SOLE NOMINEE of the PDP in Benue State to replace Dr. Iyorchia Ayu as National Chairman of the Peoples Democratic Party (PDP).
“We have taken this decision today to add force to the agitations from Benue State and from the North-Central Region for the replacement of Dr. Ayu as National Chairman”, the PDP party chairmen declared.
Similarly, the elected officials of the Peoples Democratic Party (PDP) in the Benue North-West (Zone ‘B’) Senatorial District, rising from their Zonal Meeting held on 21st October, 2024 at the PDP State Secretariat located along Abdullahi Shelleng Road, High Level, Makurdi, issued a communique which read in parts thus:
“As provided in Section 47(6) of the PDP Constitution 2017 (as amended) the replacement for Dr. Iyorchia Ayu should be made from the North-Central Geo-political Region of Nigeria, in general, and Benue State, in particular, to maintain our great party’s commitment to equity, justice, and fairness as the core principles upon which the party is founded.
“Since equity, fairness and justice cannot be fulfilled halfway, even in Benue State, the replacement of Dr. Ayu should come from the Senatorial District he hails from, which is the Benue North-West (Zone ‘B’).
“This decision of ours taken today is communicated to the State Working Committee (SWC) of the party in Benue State for necessary action and upward transmission to the appropriate organs of the party at the appropriate levels.
“It is our conviction that the National Executive Committee (NEC) of our great party, the PDP, in upholding the principles of equity, fairness and justice, will decide in favour of Benue State and the SOLE NOMINEE from the state, Engr. Conrad Terhide Utaan, to replace Dr. Iyorchia Ayu as National Chairman of the PDP”, the party officials submitted.
Another solid endorsement of Engr Utaan’s candidacy came from the Benue PDP Youth Forum (BPDPYF). The group stated unequivocally that:
“Our party needs a de-tribalized, tireless, vibrant, young, energetic, hardworking and committed member of the party from the North Central geopolitical zone of the country to pilot the affairs of the party so as to unite men and women , young and the elderly to set aside their differences, diverse interests and come together to reclaim the lost glory of our party.
“After a thorough search and retrospect, we have found a grassroot mobilizer , a man of the people, a charismatic Leader, Hon. Engr. Utaan Terhide Conrad with the desired qualities and we make bold at this juncture to endorse his candidature for the exalted position of the National Chairman of our party, the PDP .
“The decision is predicated on the fact that Engineer Utaan is well schooled, he is an all rounder, he is both the man of the youth and the elderly. He has what it takes to bring together all aggrieved members of the party to resolve all differences on a round table. He represents a true Nigerian without tribal and religious sentiments, he is humble and easy going and above all, he is loved by all”, the group concluded.
Engr Utaan’s candidacy has received a favourable appeal across the country. Only last week, a group of like-minded people wrote from Jos, Plateau State through their coordinator, Andrew Longyem, endorsing Utaan as the next PDP National Chairman. The group raised a number of strong points on why the PDP needs Utaan as the next Chairman.
Engineer Terhide Utaan is a beacon of hope and progressive change, which accounts for why he is garnering widespread support from various groups across different states. His aspiration to become the next National Chairman of the PDP is not merely a personal ambition; it is a reflection of the collective desire for a leader who embodies integrity, innovation, and inclusivity.
Conrad Utaan’s extensive background in engineering and management equips him with a unique skill set that is essential for effective political leadership. His professional journey is marked by significant achievements in both the public and private sectors, showcasing his ability to implement complex projects and navigate challenging environments. This experience translates into a profound understanding of party administration, general governance, resource management, and strategic planning—skills that are vital for steering the PDP in a direction that aligns with the aspirations of its members and the Nigerian populace.
The momentum behind Utaan’s candidacy is underscored by the endorsements he has received from various PDP groups across the country. These endorsements are not mere formalities; they signify a deep-rooted confidence in his capability to lead the party effectively. Grassroots support is crucial in politics, and Utaan’s ability to connect with party members at all levels indicates his commitment to inclusive governance. He understands the challenges faced by different demographics within the party and is poised to address their concerns through comprehensive policies that resonate with the electorate.
The Vision
I have perused Utaan’s vision for the PDP and found it quite fascinating. His blueprint for the party revolves around unity, reform, and revitalization. He recognizes the need for the party to adapt to the evolving political landscape and to re-establish its position as a formidable force in Nigerian politics. His strategy includes fostering collaboration among party members, promoting transparency, and creating a more democratic process within the party’s decision-making structures. By prioritizing these values, Utaan aims to restore public trust and encourage broader participation in the political process.
Embracing Elders’ Wisdom
Engr Utaan’s recognizes the need for a leadership approach that not only revitalizes the party but also honours its foundational values, particularly respect for elders and inclusion of party stakeholders.
One of the cornerstones of Utaan’s leadership philosophy is his profound respect for elders. He understands that the experience and insights of senior party members are invaluable.
If given the opportunity to serve, Utaan will actively seek the counsel of party elders on critical issues, thereby fostering a culture of collaboration. Utaan will not only honour their legacy but also enhance the party’s credibility and unity.
Youth Empowerment
One of Utaan’s standout qualities is his uncommon commitment to empowering the youth and women within the party and the broader society. He understands that the future of Nigeria lies in the hands of its young people, and he is dedicated to providing them with the opportunities and platforms they need to thrive. Utaan’s policies will prioritize education, entrepreneurship, and mentorship programs, ensuring that the next generation of leaders is well-equipped to tackle the challenges ahead. Additionally, his focus on women’s empowerment aligns with the PDP’s goals of promoting gender equality and inclusivity within the political arena.
A Champion of Unity
As Utaan embarks on this journey to become the National Chairman of the PDP, he has been calling for unity among party members. He believes that the strength of the PDP lies in its diversity and the collective efforts of its members. His leadership will focus on bridging gaps, resolving internal conflicts, and fostering a sense of belonging among all stakeholders. This approach is essential for building a resilient party capable of facing the challenges posed by the current political climate in Nigeria.
Utaan understands that the strength of the PDP lies in its diversity of voices. His administration will prioritize stakeholder engagement, ensuring that every member—be it at the state, local government, or ward level—feels represented and heard. He plans to implement regular town hall meetings and feedback sessions, creating a transparent dialogue between the leadership and party members.
By utilizing digital platforms and social media, Utaan will expand outreach, allowing for broader participation in discussions about the party’s direction. This inclusive approach will empower stakeholders to contribute ideas and solutions, fostering a sense of ownership and commitment to the party’s goals.
Utaan is committed to healing any divisions within the party. He believes that a united front is essential for electoral success and effective governance. To this end, he will initiate reconciliation programmes that bring together various factions within the PDP. By promoting a culture of forgiveness and collaboration, Utaan aims to build a cohesive team that works towards common objectives.
Engineer Conrad Terhide Utaan stands out as the best candidate for the role of National Chairman of the Peoples Democratic Party. His impressive background, broad-based support, and clear vision for the future position him as the leader the party needs during this pivotal time. By choosing Utaan, the PDP can embark on a transformative journey towards unity, progress, and renewed relevance in Nigerian politics. His candidacy is not just about a leadership position; it is about a commitment to the ideals of democracy, development, and dignity for all Nigerians.
● Bamidele writes from Ibadan, Oyo State.
Opinion
Satellite to mobile services and connectivity disruption
Sonny Aragba-Akpore
Elon Musk’s ambition to conquer technology and everyday living got a boost early in January 2024 when his SpaceX which owns Starlink satellite communications announced that it was introducing satellite to mobile communications services across the world.
> Its plan primarily was to provide ubiquitous services around the globe and give a run for money to other mobile network operators and telecommunications companies (telcos).
With its communication satellites,Starlink introduced disruptive technologies and with satellite to mobile,the company creates further disruption in telecommunications ecosystem.
> Musk’s foray into Nigeria fetched him six licences with a full bouquet capable of operating in many spheres and first received two licences, out of the six in May 2022 .
These were for International Gateway and the Internet service provider (ISP) licences, and began to trade as Starlink Internet Services Nigeria Ltd.
> According to the Nigerian Communications Commission (NCC), the International Gateway licence has a 10-year tenure, while the ISP licence runs for five years. Both licenses took effect from May 2022 and may be renewed after the expiration.
Starlink came with disruptive technologies that are already making a world of difference for consumers and we looked on as if nothing was happening. The company came prepared.
> With a total of six licenses from the NCC and various permits and approvals to flag off the business of internet services via satellite and equally signing Memorandum of Understanding (MoU) and distribution agreements with Nigerian companies including, Technology Distribution Africa (TD),a big distributor of major technology brands and promoted by a restless technology czar ,Leo Stan Ekeh, Starlink showed it meant business.
The company didn’t stop there ,it decided to take services to even the unserved and under served communities in Nigeria and parts of Africa .
With its technology it said it will deploy nearly $30b over time for the Nigerian operations alone.
> The government is excited that with the entry of Starlink,it may achieve 70% broadband connectivity by 2025 as enshrined in the National Broadband Plan (NBP) 2020–2025.
> Starlink,s six licenses include that for ISP, Gateway Service Provider,international Data Access (IDA),Sales and Installation Major,Gateway Earth Station and Very Small Aperture Terminal (VSAT) thus making it a mega player and a big threat to other players in the industry.
Starlink officially announced its presence in Nigeria in January 2023. The company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
> “Starlink satellites provide Direct to Cell capabilities and ubiquitous access to texting, calling, and browsing wherever subscribers may be on land, lakes, or coastal waters,” it said.
“Direct to Cell works with existing long term evolution ( LTE) or fourth generation (4G ) phones wherever you can see the sky. No changes to hardware, firmware, or special apps are required, providing seamless access to text, voice, and data,” the company added.
In January 2024,Elon Musk’s SpaceX launched its first set of Starlink satellites to provide cell phone service anywhere in the world.
The company announced a milestone the billionaire warned can’t compete with terrestrial networks but will help plug cellular dead zones and boost global mobile connectivity.
> Six of the 21 Starlink satellites launched in January 2024 are capable of connecting directly to cell phones, SpaceX said.
“They are the firm’s first ever direct-to-cell satellites and are designed to function as “a cellphone tower in space,” according to Starlink’s website.
SpaceX said the satellites were first used to test its Direct to Cell service in the United States, where the company has partnered with T-Mobile.
Once activated, the service began to connect with ordinary, unmodified phones without the need for extra equipment so long as they are 4G LTE-compatible, a standard T-Mobile covered the “vast majority of smartphones” already on its network back in 2022.
Starlink said it plans to roll out a text messaging service using the technology later this year and broader voice, data and IoT—the network of connected devices called the internet of things—services in 2025.
Musk celebrated the successful launch and said the satellites “will allow for mobile phone connectivity anywhere on Earth.” However, he noted there are limitations to the technology.
“While this is a great solution for locations with no cellular connectivity, it is not meaningfully competitive with existing terrestrial cellular networks,” Musk said, pointing to the relatively limited bandwidth that is spread over a large area.
Starlink also notes the satellites will let users connect “wherever you can see the sky.”
It has entered a working arrangement with Africa Mobile Networks (AMN) ,a mobile network operator that has deployed services in Nigeria and other countries in Sub-Saharan Africa.
AMN has been deploying rural base stations in Nigeria since 2018.
In 2023, AMN signed a deal with SpaceX to use Starlink’s satellite backhaul connectivity for its remote base stations in Africa.
AMN has connected over 100 rural base stations in Nigeria to Starlink’s Low Earth Orbit (LEO) satellite network. This has resulted in a 45% increase in traffic across these sites.
As at April 2024, AMN owned and operated more than 1,600 base stations nationwide. They increased that number to 2,000 by the end of June.
AMN’s ARN technology allows base stations to support up to five simultaneous carriers.
The combination of AMN’s ARN technology and Starlink backhaul has increased the capacity of Base Transceiver Stations (BTS) without requiring changes to the BTS software.
AMN is privately owned by 18 shareholders, including founders, angel investors, a VC fund, and one strategic investor.
Starlink’s constellation is now providing satellite backhaul to over 100 of Africa Mobile Networks’ rural base stations in Nigeria.
AMN also expects to double the number of base stations plugged into Starlink’s constellation in the country by the end of the year. The operator says on average traffic has increased by 45% across all sites that have been migrated to use Low Earth Orbit (LEO) backhaul.
AMN and Starlink signed a commercial agreement to use the satellites to connect the operator’s mobile network base stations with broadband services in 2023, and in April this year the first base station to do so went live in Yebu, Nigeria.
Since then more than 100 terminals to other rural villages across the country have been hooked up, and AMN says that this means it is ‘able to unlock the full capability of the AMN Radio Node (ARN) to support the ever-increasing amounts of bandwidth and data volumes demanded by subscribers.’
The ARN is a multi-carrier and multi-technology (2G/3G/4G) radio node which can operate up to 5 simultaneous carriers in either 2G+ 3G or 2G+4G configuration, we’re told, and by using LEO backhaul in conjunction with it, AMN says it has been able to increase the BTS capacity remotely with no change to the existing BTS hardware on site.
“These numbers are particularly impressive given that prior to the installation of AMN’s base station, communities did not have access to any mobile network,” explains the release.
“The mobile connectivity AMN provides changes lives. Farmers can find information about market prices, a healthcare provider can consult with doctors in a larger town, money can be sent safely and securely into the village, and businesses can expand beyond their own community.”
Starlink aims to provide satellite internet connectivity to underserved and remote areas worldwide, where internet access has traditionally been limited or non-existent. The global network of Starlink satellites in Low Earth Orbit (LEO) is already providing a new ‘Direct to Cell‘ service to deliver a 4G mobile service to standard Smartphones.
Once the Direct To Cell service is fully up and running, the number of satellites will have increased significantly, and more powerful SpaceX V2 satellites will have been deployed. In essence, users can always access satellite internet service directly from anywhere on earth (if you’re on land, at least – for internet on the ocean, Starlink says it’s offering a dedicated separate maritime service).
The full ‘Direct to Cell’ satellite phone service is set for launch soon and should be compatible with 4G handsets by 2025.
Direct to Cell works with existing LTE phones as well as IoT devices using common LTE standards. Apps and changes to phone hardware or firmware aren’t necessary to access 4G mobile text, voice, and data.
In 2024, only texting will be supported, and a year later voice and data services, as well as IoT functionality, will be added.
The technology aims to extend mobile coverage to areas where traditional cell towers are not present or are ineffective. Unlike traditional mobile networks that rely on a network of cell towers, Direct to Cell connects mobile phones directly to Starlink’s satellites in orbit.
This eliminates the need for ground infrastructure like cell towers in remote areas. It can significantly expand the coverage area of mobile networks, providing connectivity in places that were previously unreachable by standard cellular services. Mobile operators can partner with Starlink to extend coverage without having to build new infrastructure.
Starlink’s satellite network covers the entire globe, which means this technology has the potential to provide universal mobile connectivity, even in the most isolated regions. Starlink satellites with Direct to Cell capability have an advanced eNodeB modem onboard. This acts like a cell phone tower in space, allowing network integration comparable to what a standard roaming partner might provide.
Compared to previous satellite telephone networks, Starlink offers two big advantages: the satellites operate closer to Earth (around 550 km as opposed to as much as 1,400 km) and SpaceX can launch larger satellites. This makes it easier for phones to connect.
However, the precise extent of the service offering and coverage in each region depends on variable such as local regulations, carrier partnerships, and ground stations. SpaceX is looking for cell phone companies to work with on selling the services and is currently already working with T-Mobile (USA), Rogers (Canada), KDDI (Japan), Optus (Australia), One NZ (New Zealand), and Salt (Switzerland).
Opinion
SCOTT TOMMEY: TRIBUTE TO AN ACCOMPLISHED ENTREPRENEUR AT 54, BY EMMANUEL AJIBULU*
Out of God’s infinite grace and mercy, November 12 uniquely stands as one special day when Scott Tommey appears to be everyone’s attention. This is one auspicious moment when friends, business associates, employees, family members, will leave no stone unturned to make him feel special, deservedly so.
Born on November 12, 1970, the Chairman of Osmoserve Global, an indigenous company that provides Marine and Engineering services to the Oil and Gas industry, Parastatals, States, and Federal Government, an Africa’s leading business icon and a patriot with integrity that trusts and puts God first in everything he finds himself doing.
Tommey’s deep aversion for injustice, empathy for humanity, magnificent taste for good, a superb dress sense and magnanimity stands him out any day, anytime. He, like a few others has showed that the love of fellow humans is still possible, by practicing ‘live and let’s live’ as a mantra. He is self-confident but not arrogant nor reckless. His deep immersion and abiding love for people is sparkling clear.
I am yet to situate him properly whether he is Marxist, progressive, conservative, leftist, centrist, liberalist or technocrat. He is all rolled into one and much more-a humanist. He has a heavy inclination and burden for humanity. His commitment to advancing the cause of human dignity is a religion to him and as well to good governance, democracy, socio-economic advancement and the welfare of all, (wo)men regardless of religious or political creed is self-evident in all his dealings. He is passionate and compassionate to a fault and as well quite emotional. Perhaps, it is right to say he is a man of immense empathy toward fellow creatures.
Tommey, a true family man, husband of Seiyefa, is from a royal family of Tommy Ikott, Afia Nsit village in Eket Local government of Akwa Ibom State; a seasoned administrator, astute consultant and business strategist has lived a practical life sustained on hard work and the benevolence of God, his knack for helping people is a clear understanding of life as a temporal place of abode and no amount of primitive accumulation can suffice. Because of this simple yet factual understanding of life, his continued successes and fulfillment in life and especially in business and investment have continued to remain shining examples to the youths who see him as their mentor and role model uniquely worthy of emulation.
Tommey is an example in excellent inter-personal skills, emotional intelligence and has not allowed the achievements he has made so far to becloud his humanity. He is ever ready to give a listening ear and ready to help a distressed person find comfort which accounts for the steady stream of visitors to his office and home on a regular basis.
Receiving a deluge of goodwill, celebratory messages, kind words and prayers from all over the world aren’t coming by accident, but simply because he truly deserves them. The man is divinely blessed, especially when one considers that the Bible says in its book of Proverbs that “a good name is to be chosen rather than great riches” but Scott Tommey is one of the few blessed with both great riches and a great name. The handsome, stylish, intelligent, Nigerian philanthropist is practically ubiquitous across the African continent and in elite circles across the world, yet displaying exceptional value of humility.
Many Nigerians are thankful to God that Scott Tommey has not limited his generosity to his immediate family. His life embodies the Francis Bacon quote that says “Charity begins at home but should not end there.” For many years, he has consistently given multiple scholarships to indigent students across the country, also contributing significantly towards the security of lives and property with his generous donations. This well thought out philanthropy is to its recipients, a lifeline and a powerful pull from the rubble that their homes and lives had been reduced to.
Scott Tommey phenomenally stands out as an investor per excellence who impressively remains an embodiment of Nigerian entrepreneurial spirit. His focus, endurance and commitment to a prosperous Nigeria and indeed Africa have marked him out for greater glory. The fact that he treasures the virtue of true friendship and loyalty to any cause he believes in, gives him the cutting edge. I sincerely join his family, friends, protégés and well-wishers in thanking God for his exemplary life. It is my prayer that the Almighty God continues to bless him with robust health, more achievements and enduring happiness without regrets. Congratulations sir.
*Emmanuel Ayodele Ajibulu is a seasoned media practitioner, infopreneur, a writer, PR consultant, and publisher of veracitydesk.com an online magazine.
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