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Huawei to Replicate Nigeria’s Internet Achievements in Other African Countries

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  • Huawei to Replicate Nigeria’s Internet Achievements in Other African Countries

Huawei Technologies Company Limited, buoyed by the Internet solutions successes so far recorded in Nigeria, said it would replicate similar solutions in all of Africa, especially in the area of broadband services.

Speaking in response to a question on Internet solution services in Nigeria, at a press briefing on Sunday, the Director, Market Insight Department, Hauwei Carrier, Ali Long, said the information technology (IT) company is working with both government and service providers in this respect.

With about 91.8 million Internet users as at 2016, Nigeria is targeting 30 percent mobile broadband penetration by 2018, but currently at 20.9 percent penetration, mainly due to dearth of infrastructure to boost expansion.

In this regard, Huawei said it is supporting operators in strategically investigating in emerging markets for new growth. In the case of Nigeria, the company said it is working with network providers in building better and cost effective infrastructure for more efficient services.

Although the 20.9 percent broadband penetration in Nigeria is seen to be poor compared to its population estimated at over 180million, but Huawei believes this is huge compared to countries in Southern Africa with only five percent access to broadband solutions.

Furthermore, Long, who spoke ahead of the official opening of the 2017 Mobile World Congress (MWC), holding in Barcelona, Spain, noted that with “per capita usage of 170 minutes per day, Nigeria tops the world. It represents a huge market and represents a great potential.”

He disclosed that successes in Nigeria have been achieved mainly because Huawei is “working with the mainstream telecom companies (telcos), working with government in developing national ICT plans, provided services with local partners with the aim of improving services.”

Specifically, Long said Huawei is working with service providers in Nigeria, including MTN, Etisalat, Celtel, Globacom, Swift and others to manage services to drive down operating expences (Opex).

In the area of solutions, he said the company has developed many infrastructure; seeing as this is not well-established. “We have developed customised WOM solutions for Nigeria because there are fibre challenges.

“We are replicating the successful experience in Nigeria in the entire Africa. For instance, we are working with MTN to focus on customer requirements,” he added.

According to him, “in terms of content development, Huawei is providing MTN with music hosting from local and global and this is distributed to customers.”

The Executive Director of the Board/Chief Strategy Marketing Officer, Huawei Technologies, William Xu, noted that one of the challenges impeding mobile broadband penetration is lack of access smart phones.

According to him, “Smart phones are very important for broadband development, but the challenge is to provide high quality and cost effective smart phones that is acceptable to consumers.”

Xu, who spoke on “meeting user demand, contributing to a more prosperous ICT industry and enabling emerging countries for to develop their digital economies,” said Huawei is doing a lot in this regard.

In the emerging markets, in which Nigeria has been identified as a huge opportunity, Xu said Huawei “plans to develop digital services in a more intelligent and open manner.”

It also plans to “accurately identify high-value users and ensure a superior experience; develop user habits in relation to digital services; and establish an ecosystem through cooperation with content providers.”

As a result, he said by 2015, the IT company is targeting about 2 billion new mobile connections and 500 million new home broadband users, adding that 5G (fifth generation) network will change the adoption of these scenarios, which is the message Huawei is bringing to the MWC 2017.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Surge as Hurricane Threat Looms Over U.S. Gulf Coast

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Oil jumped in Asian trading on Monday as a potential hurricane system approached the U.S. Gulf Coast, and as markets recovered from a selloff following weaker-than-expected U.S. jobs data on Friday.

West Texas Intermediate crude oil rose 72 cents, or 1.06%, to $68.39 a barrel while Brent crude oil was up 71 cents, or 1%, at $71.77 a barrel.

Prices had gained as much as $1 during early Asian trading before pulling back.

Analysts said the bounce was in part a reaction to a potential hurricane in the U.S. Gulf Coast.

A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said on Sunday.

The U.S. Gulf Coast accounts for some 60% of U.S. refining capacity.

“Sentiment recovered somewhat from last week’s selloff,” said independent market analyst Tina Teng.

At the Friday close, Brent had dropped 10% on the week to the lowest level since December 2021, while WTI fell 8% to its lowest close since June 2023 on weak jobs data in the U.S.

A highly anticipated U.S. government jobs report showed nonfarm payrolls increased less than market watchers had expected in August, rising by 142,000, and the July figure was downwardly revised to an increase of 89,000, which was the smallest gain since an outright decline in December 2020.

A decline in the jobless rate points to the Federal Reserve cutting interest rates by just 25 basis points this month rather than a half-point rate cut, analysts said.

Lower interest rates typically increase oil demand by spurring economic growth and making oil cheaper for holders of non-dollar currencies.

But weak demand continued to cap price gains.

The weakness in China is driven by economic slowdown and inventory destocking, Jeff Currie, chief strategy officer of energy pathways at U.S. investment giant Carlyle Group, told the APPEC energy conference in Singapore on Monday.

Refining margins in Asia have slipped to their lowest seasonal levels since 2020 on weak demand from the two largest economies.

Fuel oil exports to the U.S. Gulf Coast fell to the lowest level since January 2019 last month on weaker refining margins.

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Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

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Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

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Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

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Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.

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