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NCC Restates Commitment to Telecom Consumers

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Telecommunications - Investors King
  • NCC Restates Commitment to Telecom Consumers

The Nigerian Communications Commission (NCC) last week reiterated its commitment to protect telecoms consumers across the country.

The Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta, who made the commitment in Abuja during the celebration of the 2017 Year of the Nigerian Telecom Consumer, said: “In 2015, Nigerian telecom consumers spent $5.6 billion on telecommunications services, and in 2016, they topped it up by another $1billion to make it $6.6 billion. This, among others, call for celebration and the consumer must be seen as king in every transaction that affects them.”

While addressing the issues with telecoms consumers at the forum, Danbatta dwelt on the preeminence of the consumer, and declared that the consumer would be the focus of NCC in 2017 and beyond. According to him, NCC took a management decision that compelled it to seek to amplify its activities towards ensuring the consumer enjoys a customer experience that is enhanced and content in time and quality.

“The telecom weak link, rightly or wrongly is the consumer, and there are no small consumers as those who scratch N200.00 worth of card and the one who spends N100,000.00 are equal,” Danbatta declared.

Danbatta’s 8-point agenda, which he launched in Lagos on January 27, 2016 and in Kano, February 12, 2016, which aptly captured the consumer as the key focus of the agenda, dwelt on facilitating broadband penetration, improve service quality, optimising usage and benefits of spectrum, promoting innovation and investment opportunities, facilitating strategic collaboration and partnership, protecting and empowering consumers, promoting fair competition and inclusive growth as well as ensuring regulatory excellence and operational efficiency.

He explained that while the second point agenda captured the consumer as it relates to service quality, the sixth agenda talked about protection of the consumer. The goal is to protect the consumer from unfair practices by providing information and education to them.

“This is being actively pursued by strengthening initiatives, to educate and inform consumers in their use of communications services and act swiftly whenever necessary in the use of enforcement to protect telecom services consumers’ rights and privileges,” Danbatta said.

On the menace of unsolicited telemarketing whereby consumers receive unsolicited text messages and calls, Danbatta said: “NCC has introduced the Do Not Disturb (DND) facility where consumers are expected to activate the same by dialing 2442. Part of the plan to actualise the year of Nigerian Telecom Consumer is the determination of NCC to ensure that the consumer experiences improved service quality in the year 2017 and beyond. The commission is also implementing measures to reduce Dropped Call Rate (DCR) to meet its industry benchmark of less than one percent.”

“It will closely monitor, track and review the Key Performance Indicators (KPIs) of operators by network integrity and technical standards. Greater efforts would also be put in compliance, monitoring and enforcement of set standards.”

Danbatta allayed the fears of other stakeholders in the sector, saying, “Our focus on the consumer this year does not in any way suggest neglect of the other stakeholders in the sector. Rather it suggests a recommitment to consumer satisfaction. NCC is driven by the desire to empower the consumer and it is rolling out new initiatives to achieve this.”

Also at the forum, the Executive Commissioner, Stakeholder Management at NCC, Mr. Sunday Dare, further gave insight on the significance of the declaration.

Dare said many would want to ask why the need for the NCC 2017 Year of the Nigerian Telecom Consumer? He, however, explained, using the analogy of the five Ws and H in journalism.

On why the consumer is important, Dare said: “The consumer is important as the oxygen that keeps telcos alive. The consumer is a major stakeholder whose satisfaction matters. The satisfaction of the consumer will help the telcos increase their revenue base. NCC as a regulator is mandated to protect, inform and educate consumers.”

On the issue of why, he said: “The campaign runs in year 2017 and beyond. Every time we seek to engage and explore ways to make customer experience better is the when of this campaign.”

According to him, NCC would continue to provide unique and timely information to empower the consumer, by engaging stakeholders in a constructive way to ensure that they work with the NCC, by ensuring quality of service across board.

The Minister of Communications, Adebayo Shittu commended NCC for the timely declaration.

“The Theme for the World Consumer Right Day 2017 is ‘Building a Digital World Consumers Can Trust’ it is therefore very apt for the NCC to declare 2017 the year of the Nigerian Telecom Consumer since the theme of the 2017 WCRD celebration falls within the purview of the NCC regulatory activities and oversight functions on the telecom industry” the minister noted.

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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Crude Oil

Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

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Dangote Refinery

The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

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Crude Oil

Oil Prices Hold Steady as U.S. Demand Signals Strengthening

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Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

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Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

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oil field

Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.

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