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MTN, Airtel, and Other Telcos Creates 500,000 Jobs; Contributes $70bn to the Economy

Nigeria’s telecommunication companies have created more than 500,000 employments and contributed about $70 billion to the economy.

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1 year ago

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telecommunication-tower

Nigeria’s telecommunication companies have created more than 500,000 employments and contributed about $70 billion to the economy.

In 2001, the Nigerian telecommunication sector was valued at $500 million. This makes a significant difference of $69.5 billion in just 21 years. 

Speaking at a CyberChain Conference in Abuja, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta noted that Nigeria’s telecommunication sector has sustained more than 500,000 jobs and also contributed 12.61 percent to the Gross Domestic Product (GDP) of the country. 

Dantata also added that Nigeria’s telecommunication subscriber which stood at 400,000 in 2001 has grown exponentially to 209 active mobile subscribers in 2022.

The Executive Chairman of NCC yet added that the commission will continue to promote important policies that can help to improve the telecommunication sector despite the significant growth it has witnessed in the last 21 years. 

Additionally, Umar Danata who was represented by the Principal Manager, Digital Economy, Mrs. Ella Eli disclosed that Nigeria is due to see increased revenue from the telecommunication sector with the introduction of the 5G Network. 

According to her, other areas where the country could rake in improved revenue include e-Commerce, Financial Technology (Fintech), and Big Data. 

Meanwhile, the Nigeria Communication Commission has reiterated its desire to accelerate the deployment of emerging technologies such as the Internet of Things (IoT), Big Data, Blockchain, Robotics, Virtual Reality, and Artificial Intelligence (AI), in the country. 

The commission believed that emerging technologies are critical to the development of the economy. NCC opined that emerging technologies are capable to enhances the country’s economic diversification. 

Investors King understands that Nigeria’s telecommunication sector is one of the best and one of the most robust in Africa.

Nigeria which is Africa’s largest economy is a major player in the enlarged African telecommunication industry with important industry players such as MTN (Nigeria), Airtel, and Globacom.

Going forward, the industry is expected to witness renewed growth with the introduction of the 5G network which was recently launched by MTN in some specific cities in Nigeria.

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Telecommunications

Airtel Africa Announces Interim Dividend Amidst Robust Half-Year Performance

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2 weeks ago

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November 15, 2023

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Airtel Financial Results - Investors King

Airtel Africa Plc has declared its intention to pay an interim dividend for the half-year period ending September 2023.

The telecommunication giant, listed on both the NGX and the London Stock Exchange, shared this development in a corporate notice titled ‘Announcement of Interim Dividend Currency Exchange Rates’ filed with the Nigerian Exchange Limited on Tuesday.

Airtel Africa disclosed that the interim dividend, amounting to 2.38 US cents per ordinary share, would be disbursed on December 15, 2023, to qualified shareholders.

Notably, shareholders have the option to receive the dividend in US dollars, GB pounds, or Nigerian naira, based on their preference.

The adopted exchange rates for currency conversion were set at 1 USD = 858.24 Nigerian naira and 1 USD = 0.8190 GB pounds.

Airtel Africa emphasized that these rates were determined by the exchange rates applicable to the US dollar as of Friday.

Despite recording a loss after tax of $13 million, primarily attributed to a foreign exchange loss of $471 million in finance costs, Airtel Africa showcased robust performance in its half-year report.

The company reported a 19.7% growth in revenue currency to $2.62 billion, with double-digit revenue growth across all segments.

Mobile services revenue increased by 18.3%, driven by growth in voice and data revenue, while mobile money revenue saw a significant surge of 30.9%.

The company’s EBITDA also exhibited a commendable increase of 21.2%, reflecting a 70 basis points margin improvement over the prior period.

Airtel Africa remains resilient in the face of inflationary cost pressures and foreign exchange headwinds, showcasing a promising outlook for investors.

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Telecommunications

MTN Evaluates Exit from Three African Markets Amid Regional Challenges

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2 weeks ago

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November 13, 2023

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MTN Nigeria - Investors King

African telecommunications giant MTN is reportedly contemplating an “orderly exit” from its operations in Guinea-Bissau, Guinea-Conakry, and Liberia, according to a report by Business Insider Africa.

The company, which currently operates in 19 countries across Africa and the Middle East, aims to streamline its portfolio and address challenges in the West and Central Africa (Weca) region.

While the exact reasons for the potential exit remain undisclosed, MTN’s financial reports indicate broader challenges in the Weca segment.

CEO Ralph Mupita highlighted concerns over inflation and currency devaluation in multiple markets.

The company’s 2022 financials revealed a 1.7% decline in EBITDA margin due to pricing pressures, fintech channel subsidies, and macroeconomic hurdles.

Although Guinea-Bissau, Guinea-Conakry, and Liberia contribute only 1.6% to MTN’s total revenue, the move aligns with the company’s strategic focus on optimizing its market presence.

MTN holds a significant market share, approximately 30%, in Guinea-Bissau and Guinea-Conakry, while Lonestar MTN is the second-largest telecom operator in Liberia.

The potential exit reflects MTN’s commitment to adapting its business strategy to navigate the evolving economic landscape and optimize its portfolio for sustained growth.

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Telecommunications

Nigeria’s Ministry of Communications Secures N1 Billion for Three Million Technical Talent Program

Published

3 weeks ago

on

November 8, 2023

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Telecommunications - Investors King

Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has announced the acquisition of N1 billion in funding for the implementation of the Three Million Technical Talent program.

During a council meeting with directors of the Information Communication and Technology department in all Ministries, Departments, and Agencies (MDAs) in Abuja, Dr. Tijani emphasized the ministry’s commitment to building Nigeria’s technical talent base, strengthening the nation’s digital economy.

The minister highlighted the critical role of technology in the country’s economic growth and development.

He emphasized that effective collaboration, the creation of an enabling environment, and a workforce of public servants prepared to embrace change are essential to achieving the best results.

Dr. Tijani stated, “The best way to address societal problems is to bring people together to discuss and find solutions. Our meeting must be critical and effective in resolving issues to produce tangible outcomes. This will attract stakeholders and private investors who will provide the necessary resources.”

He emphasized the ministry’s commitment to its mission of training three million individuals, even in the absence of a dedicated budget.

The support of various organizations and companies has made it possible to secure N1 billion for the project, demonstrating the increasing interest and investment in Nigeria’s digital talent and technology initiatives.

Dr. Tijani urged the council to play its part in realizing the administration’s digitization objectives.

He called for the transformation of the civil service to maximize the utilization of limited resources, eliminating outdated practices, such as paper-based documentation, to usher in a new era of efficiency and digital innovation.

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