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Tariff Hike: Telcos Begin Load Shedding To Cut Operational Costs

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Telecom operators in Nigeria have begun to implement load shedding in response to the Nigerian Communica­tions Commission’s (NCC) reluctance to address their demands for a tariff hike.

Load shedding is a deliberate shut­down of telecom services in a part or parts, generally to prevent the failure of the entire system when the demand strains the capacity of the system.

Though operators did not con­firm the development, but there is increased prioritization of network service in high-revenue areas, explain­ing why the service quality of network operators may be good in certain areas and poor in others.

Recall that the operators, citing the rising cost of operations, including the increased prices of diesel, infra­structure maintenance, and a depre­ciating naira, recently called on the NCC to approve a tariff increase to help mitigate their financial burdens.

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For instance, MTN, with a subscrib­er base of 79.7 million as of December 2023, reported a first loss after tax of N137 billion since its 2019 listing on the Nigerian Stock Exchange in 2023. The telco incurred FX losses of N740 billion ($815.79 million at N907.1/$).

Airtel Africa, which had 50.9 mil­lion subscribers in Nigeria as of March 2024, reported a loss after tax of $89 million for its full year ended March 2024, primarily due to FX head­winds in Nigeria and Malawi.

It lost $1.26 billion to derivative and FX exposures, with $770 million attributed to the naira’s devaluation.

This has led to dwindled invest­ment in the telecoms sector, Carl Cruz, chief executive officer of Airtel Nige­ria, stated, adding that, “The devalua­tion of the Naira moving from N420/ dollar to N760/dollar in a month’s time, to about N1500/dollar today, had indeed affected telecoms industry who rely heavily on importation of infra­structure to grow the sector.’

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In the same vein, Karl Toriola, CEO, MTN Nigeria, said operators are reluctant to invest, simply because of the high operating cost and the deval­uation of naira, among other issues that have marred the growth of the sector.

According to him, “the telecoms sector in Nigeria is now in an inten­sive care unit (ICU) gasping for breath, while calling on the government to intervene.

The sector is facing a lot of chal­lenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamen­tal issues are not addressed. To rescue the sector from collapsing, there is a need to increase prices of telecom services.”

Despite repeated pleas, the regula­tory body has remained silent on the issue, causing frustration and uncer­tainty among industry players.

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The situation has escalated, with telecom operators warning that if the tariff hike is not granted, they may be forced to adopt load shedding—a strategy that would involve rationing network availability during certain periods.

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Rupture In PDP Governors’ Forum deepens

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By Ojomah Austin.

 

The evolving fall-out, which comes barely days to the contentious National Executive Committee (NEC) of PDP, followed a back and forth between the Federal Capital Territory (FCT) Minister, Nyesom Wike and the Governors forum, who declared support for Rivers State governor, Siminalayi Fubara to be made leader of the party in the state.

After a meeting with some members of the party’s National Working Committee (NWC) in Bauchi on Wednesday, Governor Mohammed, said “According to our party’s constitution, any leadership vacancy should be filled by someone from the region where it originated,” stressing that Damagum would be replaced soon considering that he hails from North East and not the North Central.

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Same day, Makinde, during the groundbreaking of the upgrading of Ladoke Akintola Airport, Ibadan, to an international airport, which was attended by another set of NWC members, led by Damagum, said he would support whatever decision the Damagum-led NWC would take to reposition the party.

Damagum, who is considered a close ally of Nyesom Wike, the Federal Capital Territory (FCT) Minister, was appointed acting national chairman after the removal of Iyorchia Ayu in June 2023.

Meanwhile, the Board of Trustees (BoT) of the PDP led by Senator Adolph Wabara, met with members of the National Assembly caucus in Abuja.

The close door meeting comes barely hours after the BoT met with Wike in Abuja.

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While Wabara refused to comment on the essence of the meeting with the lawmakers, it was noticed that most of the lawmakers didn’t honour the invitation.

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Tears As Man Takes Own Life Over Tinubu’s Govt Hardship

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By Mario Deepromoter

Sad development in Marika village, Kiyawa Local Government, Jigawa, where a 40-year-old man, Jibrin Adamu, committed suicide by hanging himself.

According to eyewitnesses, Adamu’s lifeless body was discovered in a classroom at Miftahul Khairat Islamiyya and Primary School Gurdiba on Thursday.

Police spokesperson DSP Lawan Shiisu Adam confirmed the incident, stating that preliminary investigations revealed Adamu had struggled with mental health issues.

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“Police received a report on Thursday that at about 1830hrs, a tragic incident was reported at the Command headquarters that one Jibrin Adamu ‘m’ age 40yrs of Jigawar Maroka village, Kiyawa LGA has committed suicide by hanging himself over the ceiling at Islamiyya school,” the Police spokesperson told Daily Post.

The Jigawa State Commissioner of Police, CP AT Abdullahi, has instructed officers to conduct a thorough investigation into the incident.

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Just in: Dangote Petrol Now Available at N765.99 Per Litre

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By Mario Deepromoter

11plc, Total Energies, AA Rano, and other marketers have begun lifting Dangote Petrol through Nigerian National Company (NNPC) Trading Limited for N765.99 to retail outlets nationwide.

Findings showed some petroleum marketers who were able to complete their payment process on the NNPC trading payment portal commenced the lifting of petrol earlier this week under the existing agreement between marketers and the refinery.

Tunji Oyebanji, managing director, 11Plc confirmed to BusinessDay on Thursday evening that some marketers have started lifting the products at N765.99 from Dangote Refinery through NNPC who remain the sole off-taker of product.

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“We were among the first marketers to complete the payment on the NNPC portal. We have no direct arrangement with the refinery,” Oyebanji said.

It was gathered that NNPC Retail, 11plc, Total Energies, A.A Rano are among the marketers that have picked up products from the refinery.

He added, “We don’t know the contractual financial arrangement between NNPC and the refinery but what I can confirm is we are buying at N765.99 from NNPC to lift Dangote petrol”.

Efforts to get the Independent Petroleum Marketers Association of Nigeria (IPMAN) to confirm if its members have picked up products at the Dangote Refinery proved abortive at the time of writing this report.

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See also Nigeria’s Petrol Landing Cost Revealed
Adedapo Segun, executive vice-president, downstream at NNPC said marketers cannot purchase petrol directly from the refinery because the product is still sold at a subsidised rate.

“That is the same thing happening with Dangote. I said earlier that Dangote is a company and it is going to sell at market price,” he told Journalists.

According to Segun, “The market value of PMS is still higher than what N766 or N765 or N799 that NNPC is selling.

“The situation has not changed there. So, NNPC’s off-taking is only because the others would not buy at the price Dangote will be willing to sell, which is reasonable.

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“As soon as the price allows for it, you will see the marketers go to Dangote and buy.”

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