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NCC: Telecoms Sector Added N1.4tn to GDP in Q3

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  • Telecoms Sector Added N1.4tn to GDP in Q3

The Nigerian Communications Commission (NCC) yesterday said the telecommunications sector, contributed N1.398 trillion, or 1.11 per cent in the real terms to the Gross Domestic Product (GDP) in the third quarter of 2016.

In a statement signed by NCC’s Director of Public Affairs, Mr. Tony Ojobo, which was made available to the media in Abuja, he said the sector’s contribution to the GDP was released by the National Bureau of Statistics (NBS).

Ojobo said the third quarter figure was slightly lower than the N1.5 trillion recorded in second quarter of 2016, adding that the figures however reflected the sign of the times.

The statement read: “The GDP for telecommunication as at Q3 of 2016 under information and communication contracted 0.95 per cent in Q3 2016 from 1.49 per cent in Q2 2016 and 4.69 per cent in Q3 2015.

“The information and communication sector contributed 9.9 per cent to total nominal GDP in third quarter of 2016, which is the same rate as recorded in the same quarter of 2015, but lower than the 12.6 per cent it contributed in the preceding quarter.

“The sector grew by 1.11 per cent in real terms, year-on-year in the Q3 of 2016 from the recorded rate in the period of 2015, which was 4.16 per cent point lower and also lower by 0.25 per cent points when compared with the rate recorded in the second quarter of 2016.”

According to the statement, further breakdown of the GDP constant basic prices for information and communication under the telecommunications and information service as at Q1 of 2015 is N1.3 trillion and Q2 of 2015 is N1.5 trillion and Q3 of 2015 is N1.3 trillion and Q4 of 2015 is N1.6 trillion which translated to N5.9 trillion for 2015.

The statement added: “Mobile telephone subscription increased from 149million in quarter 2 of 2016 to 153million as at September, 2016 (Q3) and teledensity now is 109 per cent.”

The five big players in the sector according to the statement included, Airtel Nigeria Limited, Etisalat Nigeria, Globacom Nigeria Limited, MTN Nigeria Communications Limited and NATCOM Consortium trading as ntel.

“Fixed/fixed wireless operators include IPNX, 21st Century Nigeria Limited, Glo Wired and MTN Wired in that order who have contributed to the growth of the sector meaningfully. There is a new entrant, Smile Communications providing voice over internet protocol services among others.” it said.

NCC, said Mobile Network Operators (MNOs) control about 99 per cent market share while 0.2 per cent is reserved for other operators. Internet subscriptions rose from 31.1million in 2012 to 93.6million as at September, 2016 representing about 200 per cent growth rate.

The statement revealed: “In terms of market shares by GSM operators or (MNOs), MTN controls about 40 per cent of the market with 60.5million active subscribers base.

“Globacom has 36.9million subscribers while Airtel and Etisalat have 32.7million and 22.5million subscribers respectively.

“With anticipated new investments in the areas of broadband Infrastructure in the next few months, the sector which already has about $68 billion total investments so far is likely to add more to the national GDP.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Telecommunications

Lagos Residents Frustrated by Rapid Data Drain, Call for NCC Action

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Lagos residents are expressing increasing frustration over what they describe as the rapid depletion of their data bundles.

Many subscribers are now calling on the Nigerian Communications Commission (NCC) to address their concerns as they suspect changes in billing practices by telecommunication providers.

Numerous subscribers have reported that their data does not last as long as it used to. A Lagos-based teacher, Mrs. Nafidah Zaynab, shared her experience, stating that a N2,000 data bundle, which previously lasted almost a month, now depletes within just a few days.

This sentiment is echoed by many, including Idowu Anabili, a trader who has reduced his data usage due to rising costs.

Abdullahi Yunus, who runs a café, noted a significant increase in his data expenses, spending between N70,000 and N100,000 monthly, up from N30,000. He attributes this spike to faster data consumption.

Telecom operators deny any wrongdoing, attributing the faster data consumption to increased usage by subscribers.

An anonymous official from MTN explained that the variety of activities performed on smartphones has increased, leading to faster data usage.

Airtel Nigeria’s spokesperson, Mr. Femi Adeniran, suggested that background apps and high-definition streaming contribute to the issue.

Despite complaints, operators assert they have not officially increased data prices. They emphasize that automatic app updates and other technical factors may be responsible for the perceived quick depletion.

Experts suggest that the challenging economic climate may be pressuring telecom companies to subtly reduce data value.

The industry has reported a 43% rise in operational costs, although no formal tariff hikes have been announced.

The NCC has clarified that it has not authorized any increase in data tariffs. The commission highlights technical factors like automatic video play and app updates as potential causes for quick data depletion.

In a bid to assist consumers, the NCC has advised turning on data saver modes and managing app updates to conserve data.

To combat the issue, Mobile Network Operators (MNOs) have initiated a campaign to educate consumers on optimizing their data usage.

They recommend practices such as disabling automatic updates and closing unused apps.

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Social Media

Meta Shuts Down 63,000 Nigerian Accounts in Sextortion Crackdown

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In a significant move to combat online crime, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has removed 63,000 accounts in Nigeria linked to sextortion scams.

This sweeping action is part of Meta’s ongoing effort to address the growing threat of digital extortion on its platforms.

Unmasking the Scammers

The crackdown, which took place at the end of May, targeted accounts engaged in blackmail schemes.

These scammers posed as young women to coerce individuals into sharing intimate photos, which were then used to extort money from the victims.

The removal follows a Bloomberg Businessweek exposé highlighting the rise of such crimes, particularly affecting teenagers in the United States.

The Global Impact

The U.S. Federal Bureau of Investigation (FBI) has identified sextortion as one of the fastest-growing crimes targeting minors.

The schemes often lead to severe consequences, including the tragic suicides of more than two dozen teens.

In one high-profile case, the death of 17-year-old Jordan DeMay in Michigan led to the arrest of suspects traced back to Lagos, Nigeria.

The Role of the Yahoo Boys

Many of the dismantled accounts were linked to the “Yahoo Boys,” a notorious group known for orchestrating various online scams.

These individuals have been using social media to recruit and train new scammers, sharing blackmail scripts and fake account guides.

Meta’s Response

Meta’s spokesperson emphasized the company’s commitment to user safety, stating, “Financial sextortion is a horrific crime that can have devastating consequences.”

The company is continually improving its defenses and has reported offenders targeting minors to the National Center for Missing & Exploited Children.

To enhance protection, Meta has implemented stricter messaging settings for teen accounts and safety notices regarding sextortion.

They are also employing technology to blur potentially harmful images shared with minors.

Ongoing Efforts

Meta’s actions highlight the complex and evolving nature of online crime. The company has pledged to remain vigilant, adapting its strategies to counter new threats as they emerge.

“This is an adversarial space where criminals evolve to evade our defenses,” Meta noted.

Looking Forward

As digital platforms continue to grapple with issues of privacy and security, Meta’s recent actions demonstrate a proactive stance in safeguarding users.

By dismantling these networks, the company aims to reduce the prevalence of sextortion and foster a safer online environment for all.

The crackdown serves as a reminder of the need for continued vigilance and collaboration between tech companies and law enforcement to protect individuals from the harmful effects of digital exploitation.

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Fintech

Flutterwave Celebrates Inclusion in CNBC’s Top 250 Global Fintechs

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Flutterwave has been recognized as one of the Top 250 Fintech companies globally by CNBC and Statista.

Joining the ranks of industry giants like Ali Pay, Klarna, Piggyvest, and Mastercard, this accolade underscores Flutterwave’s impact on the financial technology sector.

This honor follows Flutterwave’s recent inclusion in Fast Company’s Most Innovative Companies list, highlighting the company’s pivotal role in transforming Africa’s payment landscape.

The recognition is a testament to Flutterwave’s dedication to innovation and excellence in providing seamless payment solutions across the continent.

Expressing gratitude, Flutterwave acknowledged its talented team, supportive board, reliable partners, and loyal customers for contributing to this success.

The company continues to drive progress in the fintech industry, reinforcing its commitment to enhancing financial accessibility and inclusion in Africa and beyond.

Flutterwave’s recognition on these prestigious lists marks a proud moment and a significant milestone in its journey, reflecting the company’s growing influence and leadership in the global fintech arena.

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