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Improvement in Broadband Penetration – Coronation Merchant

internet subscriptions stood at 151 million in June ‘22. This represents a y/y increase of 7.7% and a m/m increase of 0.4%

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The latest data released by the Nigerian Communications Commission (NCC), the industry regulator, show that internet subscriptions stood at 151 million in June ‘22. This represents a y/y increase of 7.7% and a m/m increase of 0.4% (or c.650,000 new subscriptions).

The figure implies a density of 76% in a population estimated at 200 million, placing Nigeria well above the African average of c.37% according to Statista. Telecom operators have ramped up SIM registration and NIN enrolment capacity after the partial deactivation of the lines of users yet to link Subscriber Identification Module (SIM) cards with unique National Identification Number (NIN) in April ’22.

MTN Nigeria (MTNN) accounted for the largest share (42.3%) of total internet subscriptions among the mobile network operators. Based on MTNN’s Q1 ’22 results, service revenue grew by 22% y/y. This was due to significant growth in data (+54.5% y/y), value added service (+46.5% y/y) and voice (+6.5% y/y).

Among the mobile network operators MTNN recorded the highest m/m increase in subscriptions of (+1.1%), this was followed by Airtel (+0.9%). Glo remained unchanged (+0.0%), while 9mobile recorded a decline of -2.6% in subscriptions. Furthermore, the commission’s data show that as at end-June ’22, outgoing porting requests were highest for 9mobile (1,661) while MTNN was the chief recipient of incoming porting requests (1,770).

According to the latest national accounts, the telecommunications segment grew by 14.5% y/y in Q1 ’22, compared with 5.3% y/y recorded in Q4 ‘21. The segment continues to benefit from growth in subscriptions and increased usage from existing subscribers. This is partly driven by adjustments to hybrid work structures.

Furthermore, the latest inflation report shows that the communications segment increased by 11.2% y/y in June ‘22 compared with 11.0% y/y recorded in the previous month. This can be partly attributed to growth in operating expenses.

The commission has hinted that an increase in the price of telecommunication services such as calls, and data is unlikely in the near-term. This is despite the push by telecom operators under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON) to increase the cost of these services.

In June, broadband penetration increased to 44.3%, compared with 40% recorded in June’21. The FGN had through the National Broadband Plan 2020-2025 set a target of 90% penetration by 2025.

The steady growth in broadband penetration will have a positive impact across other sectors such as healthcare, education, agriculture, finance, transportation, and commerce. However, existing challenges such as epileptic power supply, poor infrastructure, and right of way (RoW) fees continue to hinder expansion in broadband penetration.

We recall that in 2020, the Nigerian governors’ forum resolved that telecom operators should pay a RoW fee of N145 per linear meter of fibre. However, based on local newswires, only Kaduna, Ekiti, Katsina, Plateau, Ekiti, Kwara, and Imo are implementing the new fees.

However, we understand that Anambra waived RoW fees for telecom operators in an attempt to boost broadband penetration in the state.

Many states continue to charge relatively high RoW fees. Industry sources suggest that, in states like Benue, Ogun and Lagos, it costs operators N2,500, N4,000 and N1,500 per linear metre of fibre respectively in RoW charges. The absence of a unified RoW fee across the country continuously stalls the advancement of broadband fibre networks.

The NCC has disclosed that the rollout of fifth generation (5G) spectrum services is expected to commence in August ‘22. The commission has also confirmed the issuance of the final letters of award of the 5G spectrum licenses to MTN and Mafab Communications, winners of the 3.5 gigahertz (GHz) spectrum auction conducted in December ‘21. The two licensees are now expected to accelerate the deployment of 5G network that will deliver higher data speeds, ultra-low latency, more reliability, increased network capacity, availability, and uniform user experience.

Regarding mobile money, prior to 2020, the CBN had excluded mobile network operators from offering mobile money services. However, in August‘20 as part of the CBN’s financial and digital inclusion strategy, the regulator granted final approval to Glo’s Money Master Payment Service Bank (PSB) and 9Mobile’s 9PSB to begin operations.

In May’22, final approval was granted to MTNN’s MOMO PSB and Airtel Africa’s SMARTCASH PSB to begin operations. The PSB licenses should enable telecom operators to engage in financial services which include receiving cash deposits, processing payments and remittances, issuing debit and prepaid cards, operating electronic wallets, among others.

The sector still requires significant investment in telecommunications infrastructure to drive broadband (and internet) penetration as well as affordability for data packages.

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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E-commerce

Nigerians To Enjoy 85% Discount On Groceries, Phones, Home Appliances, Others As Konga Begins Yakata Black Friday Sale

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Consumers in Nigeria now have opportunity to get 85 percent discount on products of their choice in this year’s yuletide as Konga, Nigeria’s leading e-commerce group, has officially commenced its highly anticipated annual Konga Yakata Black Friday sale.

The offer that was launched on Friday, November 1st, will run through November 30th, 2024.

The Konga Yakata Black Friday campaign is a unique opportunity for Nigerian consumers to access premium products at unbeatable prices, while also benefiting from Konga’s trusted logistics and payment solutions. Shoppers are encouraged to visit Konga.com to take advantage of these exceptional offers throughout November.

According to the management of the firm, this year’s Yakata sale brings unbeatable offers across all Konga subsidiaries, including Konga Online, Konga Retail, KongaPay, Konga Travel and Tours, Konga Health, and Konga Logistics.

Touted as the “Biggest Sale of the Year,” Konga Yakata Black Friday offers consumers the opportunity to enjoy up to 85% discount on a wide range of products across categories, including groceries, phones and accessories, home appliances, fashion, and beauty.

It is believed that the sale campaign will usher significant relief to shoppers as Konga moves to cushion the effect of the nation’s harsh economic realities.

As a trusted and authorized retailer of leading Original Equipment Manufacturers (OEMs), Konga provides shoppers with unmatched access to genuine products from renowned brands such as Starlink, L’Oreal, Apple, Samsung, Philips, Zinox, Nokia, Hisense, Oppo, Infinix, Lenovo, and HP.

It further asked consumers to expect not only the convenience of authentic goods but also a distinct pricing advantage on these premium brands.

The Yakata campaign also supports Nigerian small and medium-scale enterprises (SMEs) by driving consumer demand through nationwide awareness and promoting e-commerce adoption.

It indicated that Konga has invested significantly in creating awareness for Yakata, enabling more Nigerians to leverage online shopping for their essential needs and lifestyle desires.

For this year’s offer, the deals do not end on Konga.com alone as Konga, through its subsidiaries, provides exclusive deals to customers during the Yakata period:

Konga Travel and Tours affiliates and top clients were asked to watch out for perks including free weekend hotel accommodations, and a zero-service charge for corporate clients who book travel during the Yakata campaign.

Konga Health is offering exciting discounts on renowned brands like CeraVe and on your favourite beauty and health products. Customers can also use your favourite Konga Health influencer’s voucher code to unlock even more exclusive deals and freebies! Stay tuned to Konga Health’s social media pages for the latest updates and announcements.

KongaPay is offering shoppers who use KongaPay for purchases on Konga.com will receive a 10% discount, with additional benefits like 10% off on bill payments including electricity, cable TV, and data.

It added that users who maintain a savings balance of at least NGN50,000 are eligible for a 15% annual interest rate. As part of a special promotion, shoppers who use KongaPay also stand a chance to win cash prizes in a 100k giveaway. To qualify, customers simply need to download the KongaPay app and create an account in minutes.

Assuring customers of a seamless delivery system, Konga Logistics noted that it offers delivery at competitive, discounted rates. Konga Logistics assured that a seamless shopping experience with reliable and affordable delivery options for all purchases made during the Yakata season.

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MTN Nigeria Strengthens Working Capital By Raising N50bn In New Commercial Paper

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MTN Nigeria Communications PLC (MTN Nigeria) has disclosed plans to raise N50 billion through its latest issuance of commercial paper (CP) to boost its working capital.

The plan is under N250 billion Commercial Paper Issuance Programme.

Not only that this Series 11 and 12 CP issuance is expected to strengthen MTN Nigeria’s short-term working capital, it will also diversify its financing base.

A notification to the Nigerian Exchange Limited and the investing public further revealed that this proposed issuance is part of MTN Nigeria’s ongoing strategy to tap the debt market as a flexible funding source to meet immediate financial needs.

It builds upon the company’s series of CP issuances in the past year as it pursues a robust approach to balance its capital structure.

The funds are expected to support the company’s operational and growth requirements as it seeks to expand its infrastructure, improve service delivery, and cater to the increasing demand for telecommunications and digital services across Nigeria.

MTN’s financial statement as of September 2024 suggests it has negative working capital of about N1.49 trillion

The cash flow is necessary in order to enable the company meet cash flow demands and service short-term debt without over-relying on long-term financing

This approach provides financial flexibility, allowing MTN Nigeria to manage interest costs and adjust its debt profile in line with operational cash flow, which is critical for a company with significant external loans.

The issuance also serves the broader purpose of diversifying MTN Nigeria’s financing sources, reducing reliance on bank loans, and maintaining a balance between short- and long-term debt.

This financial strategy not only enhances MTN’s liquidity but also positions it to better withstand the economic challenges in Nigeria’s volatile business environment.

While the company has yet to disclose specific terms of the Series 11 and 12 notes, further details are expected to be shared in the coming weeks.

 

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Jumia Nigeria Launches Black Friday Offers, Extends Services To Smaller Towns, Villages

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Jumia Nigeria has launched its Black Friday deals and offers as consumers in smaller towns and villages nationwide now have access to its shopping experiences.

The company disclosed that it is expanding e-commerce access bearing in mind that the prevalent economic downturn in the country is having its tolls on many Nigerians, especially those in rural communities.

It disclosed that the campaign will run from November 1st to November 30th, 2024 with the theme ‘No Too Calculate’.

Reiterating its commitment to creating a simpler, stress-free shopping experience for Nigerians amid economic challenges, Jumia promised to allow consumers to enjoy great savings without budgetary worries.

Disclosing that this year’s Black Friday campaign is supported by Xiaomi as the platinum partner, alongside renowned brands such as Oraimo, Nivea, Infinix, Tecno, Itel, Haier Thermocool, Binatone, Pernod Ricard, Diageo, Bacardi, Hikers, Ecoflow, Skyrun, Glamstar, Ledrop, Unilever, Macallan, LG, and others, the CEO, Jumia Nigeria, Sunil Natraj stressed that the campaign is about making e-commerce more accessible to consumers in Nigeria.

Recognising the current economic situation in the country , Natraj said Jumia has worked closely with its brand partners to offer the best possible deals to consumers during this period.

According to him, Jumia expanded its network of Pickup Stations to ensure that even more consumers, regardless of their location, can benefit from the convenience of online shopping.

Harping on the company’s priority of creating real value for both its consumers and sellers through its extensive ecosystem, the CEO said those in rural areas would easily participate in the online shopping and get their delivery seamlessly.

For the Country Manager, Xiaomi Nigeria, Xingyu Yang, everyone deserves access to the latest cutting-edge technology, noting that Jumia Black Friday is the perfect opportunity for consumers to experience Xiaomi’s nnovative products at unbeatable prices.

He said since Jumia introduced Black Friday to Nigeria in 2014, the company has continued to unlock new opportunities for both consumers and businesses, expressing confidence that Nigeria will play a pivotal role in projection that online shopping in Africa will reach $75 billion by 2025.

He added that the Black Friday campaign serves as a powerful platform for international and local brands as well as SMEs to expand their reach and boost sales.

To make the online shopping and delivery easier, Yang stated that Jumia has extended its logistics network and has partnered with hundreds of local logistics service providers that will ensure easy delivery to all corners of Nigeria, including smaller towns and rural areas.

Listed on the New York Stock Exchange (NYSE) in 2019, Jumia is the leading e-commerce company in Africa, operating in 11 countries. The Jumia platform consists of a marketplace, which connects sellers with consumers, a logistics service, which enables the shipment and delivery of packages from sellers to consumers, and a payment service, JumiaPay, which offers a safe and easy solution to facilitate online payment transactions.

The company offers goods across a broad range of categories, such as phones and electronics, home appliances, fast-moving consumer goods, fashion and beauty.

 

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