Stakeholders in Nigeria’s telecommunications sector are expressing renewed optimism for increased investments, thanks to a noticeable stabilization in the foreign exchange (forex) market. This positive shift comes on the heels of a tumultuous 2024, where operators faced significant challenges due to extreme currency volatility. Industry leaders believe that the worst is behind them. The naira, which experienced dramatic fluctuations last year, has recently stabilized at around N1,535 to N1,538 per dollar in the official market. In the parallel market, rates have also shown consistency, averaging between N1,650 and N1,655 to the dollar. This newfound stability is crucial for telecom companies that rely on predictable exchange rates for planning and operations. Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), emphasized that it’s not just the exchange rate that matters but the overall stability of the forex environment. “The main issue with forex has always been instability…Now that we have a clearer range for planning, we can attract more investments.” – Emoekpere Karl Toriola, CEO of MTN Nigeria, echoed this sentiment, expressing confidence that 2025 will bring a more stable forex environment. Reflecting on last year’s challenges. “I don’t expect a repeat of the volatility we experienced last year. As long as we maintain stability, we can adapt to gradual changes in currency value.”- Toriola The turbulence of 2024 saw the dollar soar from about N460 in 2023 to over N1,600 at its peak. This dramatic rise disrupted telecom operators’ plans for importing equipment and made securing funding increasingly difficult. Gbolahan Awonuga from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) highlighted how this instability hindered growth and profitability. Engr. Ikechukwu Nnamani, CEO of Digital Reality, a leading data center company in Nigeria, illustrated the impact of forex fluctuations on business operations. He explained how changes in exchange rates can drastically alter pricing structures and profitability without any fault on the part of service providers. Looking ahead, financial experts are cautiously optimistic about continued forex stability in 2025. Dr. Muda Yusuf from the Centre for the Promotion of Private Enterprises (CPPE) noted that regulatory reforms and interventions by the Central Bank of Nigeria (CBN) have contributed to this positive outlook. With foreign reserves now exceeding $40 billion and ongoing efforts to stabilize the naira, many believe that conditions are ripe for growth. However, while telecom operators are hopeful for a stable environment, they are also pushing for a significant tariff increase up to 100%, to offset rising operational costs. The Nigerian Communications Commission (NCC) will need to consider this request carefully, especially given the economic pressures many consumers face.
Kenyan Banks Urge Upgrade of Pesalink as Central Bank Plans New Payment System
Kenyan commercial banks are expressing their concerns over the Central Bank of Kenya’s (CBK) recent proposal to create a new real-time payments system from scratch. Instead, they are advocating for an upgrade to Pesalink, a payment platform already in use. The banks argue that enhancing Pesalink would save time, reduce costs, and minimize disruptions for users. In a letter addressed to the CBK, the Kenya Bankers Association (KBA) emphasized that improving Pesalink, owned by the association through its fintech arm, Integrated Payment Services Limited (IPSL), is the most efficient and economical way to achieve the CBK’s goal of establishing a seamless Fast Payment System (FPS). John Gachora, KBA chairman and CEO of NCBA Bank, pointed out that transitioning Pesalink into a national switch would require significant changes in ownership and governance. This would involve collaboration with key players such as CBK, banks, Safaricom, Kenswitch, and other licensed payment service providers. The CBK announced its FPS plan on October 18, 2024, aiming to facilitate instant transactions across all financial institutions. Although no launch date has been set yet, banks are eager for a quick rollout. They stress that speed and cost-efficiency are critical for the success of this initiative. “In establishing a successful FPS,” Gachora stated, “we must consider how quickly we can connect all market players and the associated costs for setting it up.” Currently, Kenya’s payments ecosystem is somewhat fragmented. Mobile money platforms like M-Pesa and Airtel Money operate separately from traditional banks. While mobile money allows for quick transfers between banks and digital wallets, it often requires specific agreements between institutions. For example, some banks do not permit transfers to Airtel Money wallets, creating barriers for customers. Pesalink facilitates peer-to-peer transfers among KBA’s 39 member banks but struggles with integration into the broader fintech landscape. Users cannot send payments directly to mobile money wallets, which limits its effectiveness as a comprehensive digital payment solution. This fragmentation complicates matters for businesses that want to consolidate their payment processes. They often find themselves juggling multiple systems for card payments, mobile wallets, and bank transfers. A unified payment system like the proposed FPS could allow merchants to accept all forms of digital payments into one account, streamlining operations significantly. Despite these challenges, mobile money remains dominant in Kenya’s payments market. In 2024 alone, mobile money transactions exceeded $300 billion, far surpassing traditional methods like cheques and real-time gross payment systems. The introduction of a unified national platform for instant transactions could be a game-changer. The FPS aims to connect every part of Kenya’s financial ecosystem, from banks to mobile wallets to fintechs, allowing for real-time cross-platform payments. As discussions continue between the CBK and commercial banks, the focus remains on how best to enhance Kenya’s payment systems in a way that benefits all stakeholders involved. The outcome could reshape the future of financial transactions in the country.
Governor Alex Otti Unveils Ambitious Plan to Modernize Abia State’s ICT Infrastructure
Governor Alex Otti has unveiled an ambitious plan aimed at modernizing the state’s Information and Communications Technology (ICT) infrastructure. During a recent press conference, Otti emphasized the importance of technology in today’s world, stating, “We cannot afford to lag behind in this digital age. By investing in our ICT infrastructure, we are opening doors for our young people and creating an environment where innovation can thrive.” The governor’s plan goes beyond just technology. It includes significant investments in education and healthcare, with a clear goal of improving access to quality services for all citizens. Otti highlighted the need to reduce the state’s reliance on medical tourism by enhancing local healthcare facilities. “Our people deserve quality healthcare right here at home,” he remarked. “We want to ensure that no one has to travel abroad for medical treatment.” In addition to boosting ICT and healthcare, Otti is committed to supporting vulnerable populations within the state. His administration plans to implement programs that provide assistance and resources to those in need, ensuring that no one is left behind in this development journey. Recognizing the critical role of investment in economic growth, Otti also outlined his plans to foster a business-friendly environment. By streamlining processes and reducing bureaucratic hurdles, the governor aims to attract both local and foreign investors to Abia State. “We want businesses to thrive here,” he stated. “With the right support and infrastructure, Abia can become a hub for entrepreneurship and innovation.” Governor Otti’s multifaceted approach is designed not only to drive economic development but also to improve the overall well-being of Abia State’s citizens. As he concluded his address, he expressed optimism about the future: “Together, we can build a prosperous Abia where every citizen has the opportunity to succeed.” With these initiatives in place, the people of Abia State are hopeful that positive changes are on the horizon, paving the way for a brighter future driven by technology, education, and healthcare advancements
Nigerian Military to Collaborate with Local Arms Manufacturers to Combat Illegal Arms Proliferation
The Nigerian military is set to engage local arms manufacturers to enhance its production capabilities and combat the growing issue of illegal firearms. This initiative aims to harness the skills of law-abiding citizens involved in the production of arms while tackling the growing issue of illegal arms proliferation across the country. Chief of Defence Staff (CDS) General Christopher Musa made this announcement during an operational visit to troops stationed in Plateau State, where he reviewed locally made arms and ammunition that had been seized during military operations. His visit included a tour of the Nigerian Army’s 3 Division at Maxwell Khobe Cantonment, where he inspected facilities and met with the General Officer Commanding. During his visit, General Musa reassured the troops that they would receive enhanced resources, including advanced weaponry and improved vehicles, as well as better welfare support. He emphasized that these upgrades are crucial for boosting operational effectiveness in their ongoing fight against insurgency and criminal activities. The CDS urged the soldiers to intensify their efforts in dismantling criminal hideouts, stressing the importance of professionalism, discipline, and respect for human rights in all military operations. One of the key points of General Musa’s address was the proposal to engage skilled local manufacturers in collaboration with the Defence Industries Corporation of Nigeria. By doing so, he believes that Nigeria can enhance its military production capabilities and reduce reliance on foreign arms suppliers. “Pursuing partnerships with local arms manufacturers will not only strengthen our military capabilities but also support our economy by creating jobs and fostering local expertise,” General Musa stated. The CDS commended the dedication and resilience of the troops in maintaining peace and security amid significant challenges. He reaffirmed the military’s commitment to defeating insurgency and ensuring a safe environment for all Nigerians. As this initiative unfolds, it represents a proactive approach by the Nigerian military to leverage local resources and expertise in its ongoing efforts to secure the nation against various threats. The collaboration with local manufacturers could pave the way for a more self-sufficient defense industry, ultimately contributing to Nigeria’s overall security strategy.
Nigeria’s SEC Aims to Eradicate Ponzi and Pyramid Schemes by 2025
The Securities and Exchange Commission (SEC) has announced its commitment to eliminate Ponzi and pyramid schemes by 2025, to protect investors and enhance the integrity of Nigeria’s financial markets. This initiative is part of the SEC’s New Year agenda, which emphasizes investor safety and the promotion of legitimate investment opportunities. Dr. Emomotimi Agama, the Director-General of the SEC, shared this vision in a recent statement, highlighting that safeguarding investors will be at the core of the commission’s mission. “We will intensify our efforts to stamp out Ponzi and pyramid schemes while creating an environment where legitimate investments can thrive,” Agama stated. The SEC is not only focused on combating fraudulent schemes but is also dedicated to revamping its regulatory framework to bolster market integrity. Agama noted that effective enforcement is crucial for regulation, and the commission plans to enhance its investigative processes to hold wrongdoers accountable more decisively. “Transparency is essential for building investor confidence,” he added. To this end, the SEC will introduce measures aimed at increasing visibility and trust in securities transactions. The agency also plans to tackle issues like insider trading, which undermine market fairness. In addition to fighting fraud, the SEC is prioritizing the development of Nigeria’s commodities market. Recognizing Nigeria’s agrarian roots, Agama emphasized the importance of leveraging this sector for economic growth. “Our goal is to create a vibrant commodities ecosystem that can significantly contribute to Nigeria’s economy,” he said. The commission intends to strengthen legal and regulatory frameworks that support this growth, ensuring that both soft and hard commodities are utilized effectively across the country. Interestingly, while focusing on traditional markets, the SEC has also shown a willingness to engage with local cryptocurrency companies. Despite recent crackdowns on major exchanges like Binance and OKX, Agama indicated that some crypto entities have received an “Approval-in-Principle” to operate under a new regulatory framework. However, he cautioned that not all applications for regulatory approval would be successful, as the SEC maintains strict standards for compliance. Agama concluded by urging stakeholders in the financial sector to collaborate with the SEC in achieving its vision for a more secure and inclusive capital market in 2025. With these ambitious plans in place, the SEC is determined to foster a safer investment landscape for all Nigerians.
9mobile Unveils Ambitious $3 Billion Recovery Plan9mobile Unveils Ambitious $3 Billion Recovery Plan
9mobile has announced a $3 billion recovery plan aimed at revitalizing its operations over the next four years,to reclaim its place in Nigeria’s competitive telecom market. Once a dominant player with over 13 million subscribers, the company has faced significant challenges, seeing its user base shrink to just 3.4 million, which now accounts for a mere 2.15% of the market. To spearhead this turnaround, 9mobile appointed Obafemi Banigbe as its new CEO in July 2024. Banigbe, a seasoned telecom expert with extensive experience across Africa, is stepping into a role filled with challenges but also opportunities. He acknowledges the uphill battle ahead but remains optimistic about the company’s potential for recovery. According to reports from The Guardian, the recovery strategy is ambitious yet necessary. The plan focuses on enhancing the company’s 2G, 3G, and 4G network coverage to better compete with larger telecom giants. However, raising the required funds poses a significant challenge, particularly given Nigeria’s high-interest rates that make borrowing costly. To navigate these financial hurdles, 9mobile is adopting a pragmatic approach encapsulated in their new mantra: “Build infrastructure where we must and share it where we can.” This strategy emphasizes investing wisely in essential services while seeking partnerships to reduce costs wherever possible. Banigbe has also highlighted a broader issue within the telecom sector: while revenues are increasing, operational costs are rising even faster. This growing imbalance raises concerns about long-term sustainability, especially for companies that rely heavily on borrowing to finance their operations. Given 9mobile’s current financial struggles, this situation is particularly precarious. In summary, 9mobile is determined to turn things around and regain its footing in Nigeria’s telecom landscape. With Banigbe at the helm and a clear strategy focused on smart spending and strategic partnerships, the company is setting the stage for what it hopes will be a successful year ahead. As they embark on this ambitious journey, only time will tell if they can reclaim their former glory in the highly competitive telecom sector.