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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%




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/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.


Dana Motors Ignites a Green Revolution in Nigeria’s Auto Industry with CNG-Powered Vehicles



Dana Motors

Dana Motors Limited, the exclusive distributor of Kia in Nigeria, is leading a groundbreaking charge to revolutionize the transportation landscape in the country.

In response to the escalating fuel prices and mounting vehicle-related expenses, Dana Motors Limited has unveiled ambitious plans to introduce Compressed Natural Gas (CNG) vehicles into the Nigerian market.

This strategic move underscores Dana Motors Limited’s unwavering dedication to innovation and sustainability within Nigeria’s automotive sector, effectively tackling the pressing need for more economical transportation options.

Having previously set a precedent by launching Nigeria’s inaugural electric vehicle, the Kia Soul, Dana Motors Limited is now poised to introduce an array of high-efficiency CNG-powered vehicles.

Francis Ogboro, Vice Chairman of the Group, passionately stated, “At Dana Motors Limited, our ultimate objective is to provide Nigerians with innovative, environmentally-friendly, and budget-conscious automotive solutions. The introduction of CNG-powered vehicles seamlessly aligns with our overarching vision to elevate the quality of life for all Nigerians, while simultaneously mitigating the surging costs associated with vehicle ownership.”

Further amplifying this commitment, Olu Tikolo, Vice President of Dana Motors Limited, emphasized, “Recognizing the transformative potential of CNG vehicles for public transportation, we are steadfast in our dedication to making transit more accessible and affordable. Through this visionary initiative, we aspire to elevate the overall quality of life for all Nigerians.”

The forthcoming launch of CNG-powered vehicles by Dana Motors Limited is poised to make substantial contributions to Nigeria’s emission reduction efforts, foster sustainability, and establish a more economical transportation system. Dana Motors Limited is not just leading but reshaping the trajectory of the Nigerian automotive industry, forging a greener, more cost-effective future for all.

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Nigerian Autotech Startup, Fixit45, Secures $1.9 Million for East Africa Expansion




Nigerian autotech startup Fixit45 has successfully secured $1.9 million in equity and working capital to fuel its ambitious expansion plans into East Africa.

The funding round, spearheaded by Launch Africa Ventures, witnessed significant participation from notable investors, including Soumobroto Ganguly and Dave Delucia, alongside a diverse group of angel investors.

In a press release issued on Wednesday, Fixit45 underscored the significance of this capital infusion as a substantial stride towards broadening its footprint and influence within Africa’s thriving automotive aftermarket industry.

The company revealed that these funds have been earmarked to fuel its strategic expansion initiatives, with a particular emphasis on fortifying its automotive repair business.

Fixit45 also shared its unwavering commitment to enhancing its spare parts distribution capabilities through its online-to-offline platform, With a keen eye on the East African market, Fixit45 has set its sights on Kenya and Uganda.

Co-founded by visionaries Chioma Ahueze-Okochukwu, Goodluck Ikporo, and Pankaj Bohhra, Fixit45 offers a unique platform that empowers car owners to seamlessly connect and engage with a vast network of aftermarket stakeholders.

This extensive network encompasses automobile service providers, specialized technical teams, spare parts suppliers, and end-consumers.

Pankaj Bohhra, one of the co-founders of Fixit45, expressed his enthusiasm, stating, “This funding represents a pivotal moment for Fixit45. We are profoundly grateful to our investors for their faith in our vision and our unwavering commitment to revolutionizing the African automotive aftermarket sector. With this capital infusion, we are well-positioned to advance towards our expansion objectives.”

Fixit45’s strategic move into East Africa holds the promise of ushering in transformative developments in the automotive industry across the region.

As the company intensifies its efforts, the future of automotive repair and spare parts distribution in East Africa appears poised for a remarkable evolution. Stay tuned for more exciting updates as Fixit45 continues to make waves in the autotech sector.

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Payday’s $3 Million Seed Round: From Hope to Headaches



PAYDAY-Africa-Investors King

Six months after securing $3 million in a seed round led by Moniepoint, Nigerian fintech startup Payday finds itself embroiled in controversy and uncertain about its future.

Founder and CEO, Favour Ori, confirmed that the company is actively engaged in discussions with potential buyers.

In March, reports surfaced that Moniepoint was in talks to acquire Payday, with an expected deal closure within three months. However, the deal fell through, reportedly due to Moniepoint’s board’s lack of enthusiasm. Despite this setback, negotiations to sell the company continue.

Payday faced a wave of negative publicity in August after suspending access to customer accounts following fraudulent activities that resulted in customer losses. The company was accused of misappropriating customer funds before acknowledging the account restrictions.

Internal issues further marred the company’s reputation, especially after Payday implemented contentious salary reductions for some Nigerian staff in July and failed to issue promised stock options to affected employees.

This led to dissatisfaction and several employee departures.

Payday’s COO, Ogechi Obike, also departed, citing goal misalignment and clashes with Favour Ori.

Accusations arose that Favour marginalized Obike in crucial meetings and decision-making processes.

Favour Ori’s management style came under scrutiny, with allegations of impulsiveness and a lack of transparency.

Employees claimed that he hired top talent but stifled their input, resulting in customer disruptions, including difficulties creating virtual cards and accessing accounts.

Amid these controversies, Favour Ori has reduced his involvement in the company, focusing on external work with GitHub while the co-founder, Elijah Kingson, is employed at Revolut.

Payday’s future remains uncertain, with the potential sale of the company and the need to regain customer trust and employee satisfaction hanging in the balance.

The company faces the challenge of restoring its reputation and stability while navigating a tumultuous period in its young history.

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