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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.
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“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”
City news
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Massive empowerment: Senator Manu embarks on another ICT training in Taraba Central (Video)
The Senator representing Taraba Central Senatorial District Manu Haruna has embarked on massive training of students across his constituency in Taraba State.
Recall that before this training, Senator Manu had embarked on similar training in his constituency where over 1000 students benefitted with starter packs.
In this on going program put together by Senator Manu Haruna and the Centre for National Productivity started on Wednesday and is expected to end on Thursday, where the trainees will collect their starter packs consisting of computers and other necessary gadgets.
The program is on going in five local governments namely: Gassol LGA
Sardauna LGA Bali LGA Kurmi LGA
Gashaka LGA.
While declaring the program open, representative of Senator Manu Haruna Director General of his Campaign, Hon Simon Dogari, who also led other members council to the event said:
“This is not the first of its kind that our iconic leader Senator has organized, in the past he had organized similar training programs where over 3,000 students benefitted across our Senatorial District.
He said: ” This particular program will sharpen the skills of all participants to prepare them for the new world order of internet surfing.
“I plead with you all to attend to to your lectures with all seriousness as at the end of this program you will get starter packs consisting of a laptop.
Others who represented Senator Manu at the event include:
Hon Alhassan Hamman Gassol
Alh. Shaibu Ishaka Kurmi
Hon. Abbas Kaura
Hon. Dr Abdullahi Jugulde
Hon. Hassan Bako
Hon. Somalia Sule
Alh. Falalu Manu
Alh. Alhassan Doro
Hon. Mohammed Nagogo
Prof. Yushua Ahmed Bali
Hon. Muslim Aruwa Commissioner for science and Technology Taraba State
News
Pope Francis kicks as Russian invades Ukraine
***Says, action shameful disastrous
By Francesca Hangeior
Pope Francis marked 1,000 days since Russia’s invasion of Ukraine Wednesday, calling it a “shameful disaster for humanity” at an audience attended by First Lady of Ukraine, Olena Zelenska.
“Yesterday marked 1,000 days since the invasion of Ukraine. A tragic anniversary for the victims and the destruction it has caused,” the Argentine pope said at the end of his weekly general audience at the Vatican.
“But at the same time, (it is) a shameful disaster for all humanity,” he added in front of the thousands of faithful gathered in St. Peter’s Square, where Zelenska sat with the first ladies of Armenia, Lithuania and Serbia.
He expressed his closeness to the “martyred Ukrainian people” and called for efforts “so that weapons give way to dialogue”.
Francis then read a letter addressed to him by a Ukrainian student in which he describes the war and how people are suffering.
Russia launched its full-scale attack on Ukraine in February 2022 and since then, the pope has frequently called for an end to the conflict.
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