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Widening Skills Gap Endangers Nigeria’s $75.6BN Telecoms Sector – Omobayo Azeez

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Omobayo Azeez

A renowned telecoms policy enthusiast, Mr Omobayo Azeez, has warned that the rising skills gap challenge in the Nigerian telecommunications sector is constituting a major threat to the future of the $75.6 billion industry.

He noted this while delivering a keynote presentation on ‘Bridging Skills Gap to Accelerate the Indigenous Telecoms Development’ at the just concluded second edition of the Nigerian Telecommunications Indigenous Content Expo (NTICE 2023) organised in Lagos by the Nigerian Communications Commission (NCC).

He said for the sector to continue to thrive, telecoms companies require professionals with skills in various areas such as cybersecurity, data analytics, wireless network engineering, software development, fibre optics engineering, IP networking skills, cloud computing, and VSAT engineering among others, but which are not sufficiently available at the moment.

“The current existence of the skills gaps puts a strain on telecom firms, limiting their ability to expand, innovate, improve customer services or develop new products,” Azeez said.

According to the Convener of Policy Implementation Assisted Forum (PIAFo), while the sector is growing in geometric progression, the workforce that shoulders its day-to-day operations and support is rather depleting, a development he described as a ticking time bomb.

He said: “Available data show a high global demand for tech skilled-workers particularly in the telecoms sector. This is why the situation is even scarier for a low-middle income country such as Nigeria because high-income economies that desire similar skilled labour will always have their way enticing away capable hands and talents from here.

“This is happening already,” he said, adding that in 2022 alone, operators in the sector lamented losing over 2,000 trained telecoms personnel in Nigeria to other countries.

According to Azeez, operators are finding the gaps difficult to fill as prospective applicants often lack the required knowledge and skill set to deliver, while trained workers are leaving.

“This has hampered the rate at which operators recruit. For instance, operators across the GSM, Internet Service Providers (ISPs), Value-Added Services (VAS), Fixed Services and other subsegments of the sector have only employed additional 679 workers in the last three years, which cannot serve licensees in the sector even at a one-to-one ratio.

“Whereas, the talks around 5G, edge infrastructure, internet of things (IoT) and smart city initiatives all demand more capable hands to innovate and undertake professional tasks to achieve the future aspiration of the sector.

In his address, Azeez, who doubles as Team Lead, Business Metrics Limited, highlighted causes of the current skills gap in the sector.

According to him, they include defective educational systems, inadequate training programmes, poor remunerations, japa syndrome, global high demand for tech-skilled workers, government policies, and rapid technological advancements.

He encouraged industry stakeholders to leverage the National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector (NPPIC), among other local content policies to develop homegrown talents with skill capacities that are globally competitive.

“While effective collaboration is required between government, operators, and educational, research and training institutions to bridge the gaps, the process should begin with operators by putting in place training and internship programmes within their organisations to meet their immediate needs.

“Operators should also review employees’ remuneration and welfare packages to retain already groomed talents before they are enticed with better offers in foreign markets because labour follows the money. Expatriate quota requirements and succession plan should also be adhered to,” he added.

He further underscored investments in employees’ training and capacity building to maximise available talents, adding that investments in the workforce should be prioritised the same way as Capital Expenditure (CAPEX).

“It would be a gross injustice not to acknowledge young Nigerians for their ingenuity, skills and entrepreneurial spirit, but the current skills gap identified in the ICT and the telecoms sector must not be ignored and should be jointly tackled before it escalates from an operating threat to an existential one.

“Therefore, we should commit to grooming and retaining talents to attract more investments and secure the digital future of the country,” Azeez concluded.

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Telecommunications

MTN Nigeria to Convene Extraordinary General Meeting to Address Capital Loss

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Karl O Toriola - Investorsking.com

MTN Nigeria, one of the country’s leading telecommunications giants, has announced plans to hold an Extraordinary General Meeting (EGM) with its shareholders to deliberate on strategies for managing the significant capital loss it incurred in 2023.

The decision was disclosed in a corporate notice filed with the Nigerian Exchange Limited on Tuesday and the EGM is scheduled to take place later this month in Lagos.

The primary agenda of the meeting will be to discuss and explore possible measures to mitigate the loss of capital suffered by the company during the financial year ended December 2023.

The telecom giant posted a net loss after tax of N137 billion, largely driven by a N740 billion foreign exchange loss.

Consequently, MTN Nigeria’s retained earnings and shareholders’ fund plummeted to negative N208 billion and N40.8 billion, respectively.

In a statement, Karl Toriola, the Chief Executive Officer of MTN Nigeria, acknowledged the daunting operating environment characterized by inflationary pressures, currency devaluation, and foreign exchange shortages.

Toriola explained that the adverse impact of these factors on the company’s financial performance necessitates a comprehensive reassessment of strategies to navigate the complexities ahead.

Toriola further expressed the company’s commitment to sustaining commercial momentum and accelerating service revenue growth, despite the challenging economic landscape.

The decision not to declare a final dividend for 2023 reflects MTN Nigeria’s prudent approach to prioritizing financial stability and long-term resilience amid ongoing uncertainties.

The upcoming EGM signifies a pivotal moment for the company and its shareholders to collaboratively chart a course towards recovery and sustainable growth.

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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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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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