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Nigeria Ranks 137th in ICT Development Index

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  • Nigeria Ranks 137th in ICT Development Index

It appears there has not been any significant upward shift in Information and Communications Technology (ICT) development in Nigeria as the country ranked 137th out of 175th countries surveyed on technology growth in 2016.

According to the International Telecommunications Union (ITU) in its ‘Measuring the Information Society’ report on ICT Development Index (IDI) made available to The Guardian on Monday, Nigeria, which ranked 137th last year still remained on the same spot in 2016. Though, the IDI in 2015 was 2.48 per cent, which slightly climbed to 2.72 in the outgoing year.

The IDI is an index published by the United Nations, International Telecommunication Union (ITU), based on internationally agreed information and communication technologies (ICT) indicators. The IDI is based on 11 ICT indicators, grouped in three clusters: access, use and skills.

According to the report, South Korea, which ranked number one in 2015, with 8.78 per cent IDI penetration maintained the same position in 2016, even with higher IDI of 8.84 per cent penetration.

The other nine countries in the top 10 ranking are:
· Iceland (8.83 per cent);
· Denmark (8.74 per cent);
· Switzerland (8.68 per cent);
· United Kingdom (8.57 per cent);
· Hong Kong (8.46 per cent);
· Sweden (8.45 per cent);
· Netherland (8.43 per cent);
· Norway (8.42 per cent); and,
· Japan (8.37 per cent).

The United States of America is ranked 15th with 8.17 per cent penetration.

With Seychelles ranking 87th and 5.03 IDI penetration from 85th position and 4.77 per cent in 2015, the country leads other African countries. South Africa is next with 5.03 per cent and 88th position from 4.70 per cent in 2015.Tunisia is next. It had a slight IDI growth of 4.83 per cent in 2016 from 4.49 per cent it had in 2015, which placed it at 95th position.

Commenting, the Director Telecommunication Development Bureau (BDT), ITU, Brahima Sanou, said this year’s results showed that nearly all of the 175 countries covered by the index improved their IDI values between 2015 and 2016.

He stressed that during the same period, stronger improvements were made on ICT use than access, mainly as a result of strong growth in mobile-broadband uptake globally.

This, he said, allowed an increasing number of people, particular from the developing world, to join the information society and benefit from the many services and applications provided through the Internet.

“This year, for the first time, the report also shows countries’ rankings according to their improvement in IDI value. The results show strong improvements in performance throughout the world; a number of middle income developing countries in particular are reaping the benefits of more liberalised and competitive ICT markets that encourage innovation and ICT uptake across all sectors,” he stated.

He explained that despite these encouraging developments, there is need to focus on the countries that are among the least connected in the world, “urgent action is required to address this persistent digital divide if we want to achieve the Sustainable Development Goals (SDGs) enshrined in the 2030 Agenda for Sustainable Development. For example, the report shows that in some low-income countries, between 20 and 40 per cent of people still do not own a mobile phone and that the gender gap in mobile phone ownership is substantially higher.”

The report observed that there is a strong association between economic and ICT development, with the least developed countries at a particular disadvantage.

According to it, the average IDI value for developed countries (7.40) is 3.33 points higher than that for developing countries (4.07), although developing countries improved their IDI value more than developed countries.

There is also a strong association between the least connected countries, countries that are in the bottom quartile of the IDI 2016 distribution, and least developed countries. Indeed, the bottom 27 countries are all least developed countries, and the gap in IDI values between these countries and higher-performing developing countries continues to widen.

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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Telecommunications

Nigeria’s Mobile Subscriptions Drop by 5.4 Million in Q1 2024, NIN Enforcement Blamed

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Active mobile subscriptions dropped by 5.4 million in the first quarter of 2024, according to data from the Nigerian Communications Commission (NCC).

The total active mobile subscriptions stood at 219 million, a 2.4% decrease from the previous quarter’s 224.4 million.

This decline has been directly attributed to the stringent enforcement of the National Identity Number (NIN)-Subscriber Identity Module (SIM) linkage policy by the NCC.

Since its inception, the policy has aimed to bolster national security measures and enhance accountability within the telecom sector by mandating the linkage of mobile phone numbers to individuals’ unique NINs.

The regulatory directive, which came into effect in December 2023, required telecom operators to deactivate SIMs not linked to their owners’ NINs by February 28, 2024. The process unfolded in three phases with subsequent deadlines set for March 29 and April 15.

However, due to various challenges and requests for extensions, the final phase was postponed to July 31.

During this period, over 40 million lines, encompassing both active and multiple lines registered to a single subscriber, were reportedly barred by telecom operators.

The majority of these lines were found to be inactive, suggesting a considerable impact on non-compliant subscribers.

The National Identity Management Commission (NIMC) disclosed that as of April 2024, a total of 105 million Nigerians had enrolled for the NIN, indicating a widespread response to the government’s initiative to bolster identity verification processes.

In April 2022, the telecom sector experienced a similar wave of disruption as operators commenced the initial phase of enforcing the SIM-NIN rule.

During that period, over 72.77 million active telecom lines were barred, signaling a pivotal moment in regulatory compliance efforts.

MTN Nigeria, the country’s largest telecom operator, revealed in its first-quarter 2024 financial report that it had deactivated 8.6 million lines due to non-compliance with the NIN mandate.

However, the company emphasized its efforts to minimize the net impact of barred subscribers through effective customer management strategies.

Karl Toriola, CEO of MTN Nigeria, underscored the resilience of the company’s customer value initiatives in mitigating subscriber churn and driving gross connections amid regulatory challenges.

Despite the substantial drop in active subscriptions, MTN Nigeria closed the quarter with a total of 77.7 million subscribers, showcasing the effectiveness of its retention strategies.

As Nigeria navigates the evolving telecom landscape amidst regulatory reforms, stakeholders anticipate further measures to enhance compliance and fortify the integrity of the country’s telecommunications ecosystem.

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Fintech

Fintechs Instructed to Report Cryptocurrency Transactions to Authorities in Nigeria

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Fintech companies across the country have been instructed to report all crypto trades to relevant authorities.

This directive comes amidst the recent freezing of 105 accounts across nine fintech firms suspected of various illegal activities, including unauthorized forex dealings, money laundering, and terrorism financing.

The Economic and Financial Crimes Commission (EFCC) obtained an interim court order on April 24, 2024, to freeze these accounts for 90 days as part of ongoing investigations.

Sources close to the matter suggest a connection between these freezes and heightened scrutiny of cryptocurrency transactions.

Following these regulatory actions, several prominent fintech players, including OPay, Moniepoint, PalmPay, and Kuda Bank, have been directed to suspend the opening of new accounts temporarily pending evaluations of their Know Your Customer (KYC) processes by the Central Bank of Nigeria (CBN).

The frozen accounts are part of a broader investigation by the EFCC into 1,146 bank accounts suspected of manipulating the foreign exchange market through cryptocurrency platforms.

The EFCC believes that some account owners exploited cryptocurrency platforms to manipulate the FX market.

In response to these developments, fintech firms have started implementing stringent measures against cryptocurrency transactions.

Moniepoint, for instance, notified its customers that it would close accounts engaged in crypto or virtual asset transactions and share their details with relevant authorities.

Similar warnings were issued by other fintech players like Paga and OPay, emphasizing their stance against crypto-related activities.

During a recent industry event, Tosin Eniolorunda, founder and CEO of Moniepoint, urged participants in crypto Peer-to-Peer (P2P) markets to cease their activities due to regulatory prohibitions.

He highlighted the risks associated with engaging in such activities, citing potential legal repercussions.

Eniolorunda linked the recent regulatory actions to the prevalence of fraud in fintech apps and emphasized the renewed focus on KYC and Anti-Money Laundering (AML) measures.

He alleged that some P2P crypto activities contributed to the manipulation of the Nigerian currency, the naira, prompting regulatory intervention.

This latest directive underscores Nigeria’s broader crackdown on cryptocurrency platforms, particularly Binance, which began earlier in 2024.

The government has expressed concerns about the role of crypto platforms in currency speculation and their impact on the devaluation of the naira.

This regulatory tightening reflects the government’s efforts to maintain financial stability and curb illicit financial activities in the country.

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Technology

Multichoice Nigeria Rolls Out Tariff Increase Despite Tribunal’s Interim Order

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Multichoice Nigeria, a prominent Pay TV provider, has proceeded with the implementation of tariff adjustments for its DStv and GOtv subscribers, despite an interim order issued by a competition and consumer protection tribunal (CCPT) in Abuja.

On April 24, Multichoice announced plans to increase prices for its cable services, scheduled to take effect from May 1.

However, the CCPT ruled that the company should refrain from raising rates as initially scheduled, following an ex-parte motion presented by the applicant’s counsel.

Despite the tribunal’s interim order, checks conducted by Nairametrics revealed that Multichoice Nigeria has forged ahead with the tariff increase, with the new prices being displayed and enforced on its official website.

For DStv Premium subscribers, the price has surged from N29,500 to N37,000, while Compact Plus subscribers now face an increase from N19,800 to N25,000.

Similarly, Compact, Confam, and Yanga subscribers witness price hikes, ranging from 20% to 25% compared to previous rates.

GOtv subscribers also experience a similar fate, with tariff adjustments reflecting significant increases across various subscription packages.

Despite legal injunctions, Multichoice Nigeria’s decision to proceed with the price hike signals a bold move in a highly contested legal battle.

The Acting Chairman of the Federal Competition & Consumer Protection Commission (FCCPC), Adamu Abdullahi, disclosed that Multichoice had provided a detailed explanation for the price adjustments in a four-page letter to the commission.

The company cited factors such as foreign exchange fluctuations, high electricity tariffs, and operational costs as drivers behind the rate revisions.

Abdullahi explained that the FCCPC would scrutinize Multichoice’s justifications for the price hike, collaborating with regulatory bodies like the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) to ensure compliance with market regulations.

The decision to proceed with the tariff increase has sparked concerns among consumer rights advocates, who question Multichoice’s adherence to legal directives.

Despite the company’s rationale for the price adjustment, critics argue that subscribers should not bear the brunt of economic challenges beyond their control.

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