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Value Added Services Providers Reject NCC’s Auto-renewal Ban

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Banana Island
  • Value Added Services Providers Reject NCC’s Auto-renewal Ban

Value Added Service (VAS) providers licensed by the Nigerian Communications Commission (NCC) have rejected the ban imposed by the regulator on auto-renewal of their services.

According to them, hardline regulatory stance would do nothing but hurt the inflow of investment into the country. They also said the ban has left their accounts with zero balance, a situation that has also led many of them to close shops and axe workers.

But the NCC has insisted that the ban is not open to negotiation because it is the icing on the cake of forced subscription. It added that most of the VAS providers were crooks, who reaped from where they did not sow.

Speaking in Lagos at the first Annual Nigeria Value Added Service Stakeholders forum, CEO Mobility Arts, George Ager, said forced subscription of subscribers remained a major challenge in the industry, adding that, however, that crooks involved in the practice are well known. He, however, said taking away auto-renewal would kill the sector which is already in pains.

Also speaking, Funmobile CEO, Yahaya Maibe, said auto-renewal is a legitimate business, which and should be allowed to stand. He cited over the top (OTT) service providers that are not regulated yet rake a huge chunk of revenue from the country. Maibe said instead of taking further steps that would stifle the industry, the regulator should implement a bail-out package for the service providers.

Another contributor who identified himself simply as Richard, said autocratic regulation stifles business growth. He likened the NCC decision of closing down the Third Mainland bridge because some unscrupulous elements were going to transport contraband to the city through the bridge.

Responding, Head, Compliance Monitoring and Enforcement, Mr Efosa Idehen, said forced subscription and auto-renewal are two different things, arguing that the latter precipitates and lubricates the former.

He stressed the need for ethical growth of the VAS industry stressing that it is critical for optimising the enormous potential of the telecoms sector. He accused some operators in the industry of embarking on outright pilfering of subscribers cash, adding that the protection of the consumers remained one of the pillars upon which the regulator established.

A chieftain of the umbrella body of VAS, Association of Value Added Services Providers of Nigeria (WAPAN), Samuel Aderinola, blamed the operators for the prevalence of rogue value-added services on the network.

According to him, the telcos are supposed to provide the infrastructure that would effectively weed out all rogue messages in the system.

There was, however, a general consensus that there was need for self-regulation among the members of WASPAN. They agreed that there were bad elements within the VAS segment of the industry.

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

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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