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Telecoms Capital Inflow Shrinks by 94%

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Telecoms
  • Telecoms Capital Importation Shrinks by 94%

The capital importation of companies operating in the telecommunication industry has reduced drastically in the second quarter of 2018 compared with the same quarter of last year.

An analysis of the second quarter 2018 capital importation report published by the National Bureau of Statistics indicated that there was a 94 per cent reduction in capital importation year-on-year.

In the second quarter of 2017, the total value of capital inflow into the country was $174.18m as against $11.12m in the second quarter of this year.

Quarter-on-quarter, there was also a 93 per cent reduction in capital inflow into the country, from $166.68m recorded from January to March this year to $11.12m between April and June.

The report stated that Nigeria’s telecommunication sector only accounted for 0.2 per cent out the $5.5bn capital inflow into the country in the second quarter of this year.

The study divided capital importation into three main investment types: portfolio investment, Foreign Direct Investment and other investments such as trade credit and loan.

Commenting on the report, the President, Association of Telecommunication Operators of Nigeria, Olusola Teniola, said the telecoms sector was largely dependent on equipment, funding and skills from other countries.

According to him, moves by the Federal government to diversify the economic will not in any way reduce the dependency of operators in the sectors on the FDI.

“When you see the macroeconomic change, it is much more acute in our industry because operators depend heavily on imports. Even though the government wants to diversify the economy and increase manufacturing, it does not change the fact that our industry in near and medium term will still require importation of foreign equipment to drive it,” Teniola said.

He added, “Nigeria will not automatically change from exporting oil to exporting telecoms equipment. It can’t happen overnight. The reality is that the telecoms industry is an enabler of all other sectors. If we are not seeing the FDI coming in, it means the sector has remained flat; the consumer has weak spending power; they are not making as many calls as before and not recharging as much as before.”

Teniola said the capital importation report reflected the economic performance in which only oil export still had significant impact on the GDP than non-oil export.

He said, “The impact is being demonstrated in the GDP which has not increased significantly and it is only being heavily contributed by oil export receipts. That is one of the reasons why we have this small increase in the GDP growth.”

The ATCON president warned that there would be further reduction in capital importation if stakeholders did not ensure that there was more FDI to inject in the non-oil sector.

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

From Trading to Credit: Robinhood Launches No-Fee Credit Card with Gold Membership Perks

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Robinhood

Robinhood Markets Inc. has announced the launch of its highly anticipated no-fee credit card and it was accompanied by exclusive perks for Gold membership subscribers.

This bold move is a step in the company’s mission to evolve into a comprehensive financial services provider.

The Robinhood Gold Card boasts an array of enticing features. Chief among them is the absence of annual costs or foreign transaction fees, positioning it as an attractive option for consumers seeking financial flexibility.

Moreover, cardholders stand to benefit from a generous 3% cash back on all categories of purchases, a competitive offer in comparison to industry rivals.

Vlad Tenev, CEO of Robinhood, emphasized the company’s commitment to innovation and industry leadership in an interview.

He expressed the intention to not merely introduce a credit card, but to revolutionize the market with a product that sets new standards for customer satisfaction and financial empowerment.

The announcement has sparked enthusiasm among investors, with Robinhood’s shares witnessing a 6.9% surge in early market trading following the news.

This surge further underscores the market’s confidence in the company’s strategic direction and its potential to disrupt traditional financial services.

Beyond the credit card venture, Robinhood has been steadily diversifying its offerings. With the introduction of retirement products and the expansion of commission-free trading services internationally, the company is positioning itself as a formidable player in the global finance landscape.

As Robinhood continues to innovate and expand its suite of services, its trajectory suggests a promising future as a leading force in democratizing access to financial tools and services.

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Telecommunications

NCC Files Copyright Infringement Charges Against MTN Nigeria and Others

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Karl O Toriola - Investorsking.com

The Nigerian Copyright Commission (NCC) has taken legal action against MTN Nigeria Communications Ltd. and four individuals, including its Chief Executive Officer, Karl Toriola, over alleged copyright infringement.

The charges, filed in the Federal High Court, Abuja Division, revolve around the unauthorized use of musical works belonging to artist Maleke Idowu Moye.

According to the NCC, the defendants are accused of offering for sale, selling, and trading musical works of Maleke without his consent between 2010 and 2017. These works were allegedly used as Caller Ring Back Tunes without proper authorization.

The musical pieces in question include popular tracks such as “911,” “Minimini-wanawana,” and “Stop racism,” among others.

The commission further alleges that the defendants distributed these musical works to subscribers without authorization, infringing upon the rights of the artist.

The charges are based on provisions of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

As the case awaits assignment to a judge and a fixed date for mention, it marks a significant development in the ongoing efforts to uphold copyright protection in Nigeria’s telecommunications sector.

This legal action underscores the NCC’s commitment to safeguarding the intellectual property rights of artists and creators within the country.

MTN Nigeria, a major player in the telecommunications industry, now faces a legal battle that could have broader implications for how intellectual property rights are respected and enforced within Nigeria’s digital landscape.

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Telecommunications

MTN’s MoMo Sees 32.2% Surge in Transaction Volumes

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MTN Nigeria - Investors King

MTN Group’s mobile money platform, MoMo, has experienced a 32.2% surge in transaction volumes.

With 72.5 million active users, MoMo continues to solidify its position as a leading fintech service provider in Africa, tapping into the continent’s burgeoning mobile banking sector.

The company’s success underscores the growing trend of Africa’s young and tech-savvy population embracing mobile technology to address financial needs.

Mobile phones are increasingly becoming a tool for bridging gaps in services, particularly in banking, presenting a lucrative opportunity for wireless carriers like MTN to capitalize on the burgeoning fintech market.

MTN’s achievement comes as it finalizes a deal with Mastercard Inc., valuing its fintech business at an impressive $5.2 billion.

This strategic partnership further enhances MTN’s position in the digital finance space, positioning it for continued growth and innovation.

However, MTN is not alone in its fintech endeavors. Rivals such as Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. are also making strides in digital transformation, with plans to separate and monetize their fintech businesses in the long term.

Airtel Africa, for instance, is reportedly considering an IPO for its mobile money unit, indicating the high stakes and intense competition within the sector.

Despite the remarkable success in its fintech ventures, MTN faced challenges in its core telecommunications business, with service revenue growth slowing to 6.8%.

Inflation and currency devaluation in key markets, particularly Nigeria, impacted profitability, highlighting the complexities of operating in diverse African markets.

As MTN continues to expand its fintech footprint and invest in infrastructure to enhance connectivity across the continent, it remains poised to capitalize on the immense potential of Africa’s digital economy.

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