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Dealing with Perennial Poor Quality of Service

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Telecommunications - Investors King
  • Dealing with Perennial Poor Quality of Service

The issue of poor service quality reared up its ugly head for the first time in 2006, after the expiration of the five-year exclusivity period granted the first set of licensed telecoms operators that rolled out in 2001, and since then it has been a recurrent issue, writes Emma Okonji.

When Econet Wireless Nigeria (now Airtel Nigeria) first rolled out its telecommunication commercial services on August 8, 2001, followed by MTN Nigeria, a week after, the quality of service was awesome and without hitches.

The quality was maintained even after Globacom rolled out in 2003, and Nigerians were pleased with the service, which was mainly dominated by voice calls. At that time a caller will generate a call at one dial and will connect easily to the call recipient and discussions done in several minutes without each party experiencing drop calls. There was no network congestion then that would warrant drop calls and subscribers were happy with network operators. Within this period, subscriber number was not much, compared to what it is today. Total subscribers’ number was less than 5 million at that time, but today there are over 150 million connected lines.

But shortly after the expiration of the five-year exclusivity period, precisely in 2006, telecoms subscribers started experiencing poor service quality, ranging from drop calls, inability to recharge, call diversion, poor voice clarity, to inability to make successful calls.

The situation continued and degenerated as more subscribers were registered, and subscribers complained.

When Etisalat was eventually registered in 2008, and it rolled out its services in 2008, its network appeared better than that of existing operators, but Etisalat started suffering the same poor quality, few years after, when its subscribers’ number increased rapidly.

Telecoms experts have blamed network congestion on the inability of operators to expand their networks, commensurate with the number of subscribers they register on their networks, while others have blamed the situation on obsolete telecoms facilities that do not have the capacity to accommodate the expanded subscribers’ number.

Disturbed by the situation, the Nigerian Communications Commission (NCC) came up with all manners of measures to address the issue, including sanctions, but the issue of poor service quality persisted across networks.

NCC’s Recent Measures

Worried by the degenerating quality of service (QoS) provided by Mobile Network Operators (MNOs) and other service providers, the NCC, recently came up with new measures to address the ugly trend, which appears endless.

As part of new measures to cushion the situation and ameliorate the recurrent inaccessibility to foreign exchange (forex) by operators, the Executive Vice Chairman (EVC) of NCC, Prof. Umar Danbatta, told the operators that the commission had written to the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, and he was favourably disposed to addressing the forex needs of the operators.

Specifically, as a follow-up to the letter, the Executive Commissioner, Stakeholders Management at NCC, Mr. Sunday Dare, had a meeting with CBN Governor and extracted a commitment from him on how he hoped to address the forex needs of the operators.

Danbatta, who spoke with the operators in Abuja during an interactive session on service quality delivery which NCC management had with operators, said since the NCC had declared 2017 as the year of the consumer, all hands should be on deck for telecom consumers to have a fresh lease to high quality of service. “The consumer has to be treated with dignity,” Danbatta added, saying the “8-point agenda drives this point home.”

The NCC, he explained, has put measures in place to check and monitor QoS on various networks “and we have sent this report to our task force on QoS and have been interacting with governments at different levels as part of the measures to deal with the poor QoS”.

Danbatta admonished the operators and co-location service operators to provide suggestions on how to address the situation.

Earlier, NCC’s Executive Commissioner, Technical Services, Mr. Ubale Maska said, QoS has been a great concern as consumers inundate the commission with complaints.

“It requires everybody’s input if the situation has to be redressed, hence 2017 has been declared the year of the Consumer,” Maska said.

NCC Director, Technical Standards and Network Integrity (DTSNI), Dr. Fidelis Ona, explained that the commission was aware of some of the challenges which include Right of Way (RoW), difficulty in acquiring new cell sites, multiple taxation and regulation, vandalism, power supply among others.

“We are engaging stakeholders, including Industry Working Group on Quality of Service, special committee on Counter Harmonization to address this,” Ona said.

NCC’s Head, Quality of Service Unit, Edoyemi Ogoh, in his presentation traced poor quality of service to fibre cuts, community issues, among others.

He said in October 2016, operators experienced 175 cuts across the nation while they recorded 180 cuts in November and 103 in December, 2016. There were 113 community issues in October 2016, 74 in November and 133 in December, adding that fibre cuts and community issues remain major drawbacks for QoS.

Chief Technical Officer (CTO) at MTN Nigeria, Mr. Hassan Jamil, expressed happiness with the interactive session, and said it would help the regulator to know the situation on a one-on-one basis.

Subscribers’ Pains

The issue of poor service quality has caused a great deal of pains to subscribers. At every consumer parliament organised by NCC, consumer complaints on poor service quality always take the centre stage. Most subscribers at some point in time will remain incommunicado, especially at festive periods like Yuletide, because they could not make calls as a result of network congestion. Some text messages were delivered days after the messages were sent, and at the time the message would be received, the essence of sending the message which had been billed, would have been defeated.

In order to address the challenges, the Chief Executive Officer of Teledom Group, Dr. Emmanuel Ekuwem, called for increased access to ubiquitous broadband across the country. In a similar vein, the President of National Association of Telecoms Subscribers (NATCOM), Chief Deolu Ogunbanjo, also called for increase in the number of Base Transceiver Stations (BTS), otherwise known as base stations. Ogunbanjo said Britain with a population of less than Nigeria’s 180 million people, has over 65,000 base stations, while Nigeria is still struggling to maintain about 20, 000 base stations across the country.

Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, however called for growth in local content development in the telecoms sector, which he said would boost telecoms growth among small indigenous players. He said Nigeria should be able to address its collective challenges, to enable telecoms subscribers enjoy the achievements of the sector, since the rollout of GSM services in the country in 2001.

Economic Loss

Both the operators and subscribers suffer economic loss, once there is network congestion that affects successful calls. According to the operators, they are never happy when there is network congestion because what that means is loss of revenue for the operators since people will not be able to make calls and browse the internet.

In the same manner, subscribers who have business calls to make that could fetch them good money, will end up losing funds in the process.

Operators’ Position

Telecoms operators who attended the recent meeting with the Executive Vice Chairman of NCC, listed some of their challenges as it relates to poor service quality, and made some suggestions on how to address the issue. They were of the view that scarcity of dollar has worsened the situation, and has resulted to their inability to import equipment to boost network expansion. According to them, we can’t transmit forex to vendors, we have issues with incessant fibre cuts, community related challenges, scarcity of diesel to power base stations, Right of Way issues with different layers of government in the regions, as well as sabotage at different levels. “We planned to install 100 sites for Abuja this year, but after a very long time, we were only able to build six because of the bottlenecks of getting approvals and until we resolve these, quality of service will be a mirage,” the operators told Danbatta at the recent meeting.

The issue of poor service quality, no doubt, is affecting both the operators and the subscribers, and the onus lies on NCC to find a lasting solution to it, in order to bring hope alive.

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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Fintech

Flutterwave Hit by Another Security Breach, Billions of Naira Diverted to Multiple Bank Accounts

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In another blow to the financial technology sector, Flutterwave, a prominent player in Nigeria’s digital payment landscape, has been rocked by yet another security breach, resulting in the diversion of billions of naira to multiple undisclosed bank accounts.

This incident is the latest in a series of setbacks for the fintech company, raising concerns about the integrity of its systems and the safety of customer funds.

According to insider sources familiar with the matter, unauthorized transactions amounting to approximately ₦11 billion ($7 million) were illicitly transferred to several accounts during April 2024.

However, other sources suggest the figure could be as high as ₦20 billion ($13.5 million), underscoring the magnitude of the breach.

Flutterwave, responding to inquiries regarding the breach, acknowledged the unauthorized activities but stopped short of confirming the exact amount involved.

In a statement to TechCabal, the company assured the public that no customer funds were lost or compromised, and the confidentiality of customer data remained intact.

The modus operandi of the perpetrators involved transferring the stolen funds to various accounts across five financial institutions over a span of four days.

To evade detection, the transactions were carefully orchestrated to stay below thresholds that trigger fraud checks, highlighting the sophistication of the operation.

Law enforcement agencies have been notified of the breach, and investigations are underway to apprehend those responsible.

Flutterwave has also initiated measures to mitigate the impact of the incident, including temporarily restricting the accounts implicated in the unauthorized transfers.

Industry analysts note that this is not the first time Flutterwave has fallen victim to such security breaches. Over the past fourteen months, the company has grappled with multiple incidents of unauthorized transfers, raising serious concerns about the adequacy of its cybersecurity measures.

In October 2023, Flutterwave reported unauthorized transactions totaling ₦19 billion ($24 million), affecting thousands of account holders across 35 banks and financial institutions.

Subsequent breaches in March and February 2023 saw millions of naira diverted to numerous bank accounts, further exposing vulnerabilities in the company’s systems.

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Fintech

Moniepoint Inc Moniepoint Inc Named Africa’s Fastest-Growing Financial Institution by Financial Times

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Moniepoint

Moniepoint Inc, parent company of Nigeria’s leading financial institutions, Moniepoint MFB and TeamApt Ltd has been ranked by the Financial Times, one of the world’s leading business news organizations, recognized internationally for its authority, integrity, and accuracy as Africa’s fastest-growing financial institution.

The world’s leading financial publication confirmed Moniepoint Inc’s accolade in its annual “Africa’s Fastest Growing Companies” survey, released today. It is the second consecutive year Moniepoint has achieved both the fastest-growing fintech milestone, and, ranked in Africa’s top four fastest-growing companies overall.

The survey was compiled by Statista, a leading research company renowned for its insight into African companies’ actual performance, in a rigorous screening process. In this survey, companies are ranked based on 2019-2022 data by their absolute growth rate of revenues and their compound annual growth rate (CAGR). Moniepoint’s growth rates of 7,979% (absolute) and 332% (CAGR) ranked it ahead of hundreds of leading companies from diverse industries such as technology, telecoms, financial services, and healthcare.

Moniepoint Inc has long been one of Africa’s largest business payments platforms, processing over $182 billion for customers in 2023. It will be recalled that in August 2023, Moniepoint MFB entered the personal banking market offering reliable banking services to millions of individuals across Nigeria.  The holding group also doubled its global headcount, growing to over 1,800 employees by the end of 2023.

This recognition highlights Moniepoint’s success as Africa’s leading fintech, driving financial inclusion by empowering underserved businesses and individuals to access the formal financial system, contributing to a key goal of the Nigerian government.

Tosin Eniolorunda, Group CEO of Moniepoint Inc., said: “We are thrilled to be recognised by the Financial Times as Africa’s fastest growing fintech for the second consecutive year. Achieving rapid growth and scale is a fantastic achievement; maintaining that year-on-year is even better. The ranking is a testament to the dedication and hard work of the entire Moniepoint team, and the trust of millions of customers across Africa in the Company.

“2023 was a pivotal year for Moniepoint. Moniepoint has moved from being an agency-dominated institution to becoming merchant-dominated as we have seen a lot more people embrace more digital payment solutions. It is humbling to see that we have become a household name that people have come to know and trust, the bellwether for reliable transactions every time.

With our foray into the personal banking market, we have been able to deliver seamless and reliable payment solutions for Nigerians especially those in underserved communities as we continue to supercharge access to financial services and contribute to economic growth and wealth creation.  2024 is set to be even more exciting with continued growth, driving compliance and innovation, as we maintain our leading role within the African fintech sector, driving financial inclusion across Africa.”

According to David Pilling, FT Africa Editor, “The third year of our now expanded ranking of Africa’s Fastest Growing Companies comes against a background in which many economies are struggling to recover from the Covid pandemic. The FT-Statista list reveals the type of companies that, even in hard times, have managed to grow, often by disrupting markets…This year, our ranking has a wider geographical spread of companies than before. The big newcomer is Morocco, with 12 companies in the top 125 against just three last time. Mauritian-domiciled companies also did well with nine winners, against four in 2022. South Africa had 42 companies in the list, followed by Nigeria’s 25, while Kenya tied third at 12.”

Moniepoint Inc.’s technology powers over five million businesses and their customers, offering all the payment, banking, credit and business management tools they need to succeed.  Establishing itself as a market leader in Nigeria across various segments from commerce to health and hospitality amongst many others, Moniepoint’s transformational and positive strides has earned it local and international plaudits.

In 2023, for the second year running, Moniepoint Inc was named amongst the 100 most promising private fintech companies by CB Insights. Moniepoint MFB received the Rising Star Family Business Award at the Pwc/Businessday Family Business Summit; while bagging the Fintech Company of the Year award at the 16th edition of Leadership Newspapers Conference and Awards.

Industry analysts have averred that as a strongly embedded and systemic institution in the digital payment services segment, with an eye on the future, Moniepoint Inc is poised to continue to deliver innovative solutions that promote inclusivity, drive sustainability and create new vistas in the markets where they operate.

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E-commerce

Jumia Plans Warehouse Consolidation in Lagos Amid Nigeria Focus

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Jumia - Investors King

Jumia Technologies AG, the Nasdaq-listed e-commerce giant, has unveiled plans to consolidate its warehouses in Nigeria.

This decision is part of the company’s broader strategy to prioritize Nigeria, Africa’s most populous nation as it endeavors to turn profitable amidst challenging market conditions.

The consolidation initiative will see Jumia merging its three existing warehouses in Nigeria into a single expansive depot spanning 30,000 square meters, strategically located in Lagos.

Francis Dufay, CEO of Jumia, emphasized the cost-cutting benefits associated with this move, highlighting the company’s commitment to optimizing its operational efficiency.

Speaking about the rationale behind the consolidation, Dufay expressed confidence in Nigeria’s potential to provide Jumia with the scale needed to achieve profitability.

Despite facing headwinds such as currency fluctuations and a challenging economic environment, Jumia views Nigeria as a key market for growth, anticipating positive developments in the medium term.

Jumia’s decision to streamline its operations in Nigeria comes against the backdrop of its ongoing efforts to navigate the complexities of the e-commerce landscape.

Despite reporting an operating loss of $8.33 million in the first quarter of the year, the company remains optimistic about its prospects in Nigeria, where it continues to witness steady revenue growth.

The e-commerce giant’s commitment to Nigeria underscores its long-term vision and determination to succeed in the region.

With plans to expand its footprint to additional cities across the country, Jumia aims to capitalize on Nigeria’s vast market potential and consumer demand.

However, Jumia’s journey to profitability in Nigeria is not without its challenges. The country’s economic landscape has been marred by currency devaluations, infrastructural deficiencies, and logistical hurdles.

Yet, amidst these obstacles, Jumia remains resilient, banking on Nigeria’s economic revival efforts and policy reforms to fuel its growth trajectory.

As part of its strategy to adapt to evolving market dynamics, Jumia has introduced innovative initiatives such as buy-now-pay-later financing options to cater to customers grappling with rising prices.

Also, the company remains vigilant in monitoring pricing dynamics, ensuring competitive pricing to meet the needs of price-conscious consumers.

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