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NCC: How Nigeria Attained 30.9% Broadband Penetration Target

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  • NCC: How Nigeria Attained 30.9% Broadband Penetration Target

Fresh facts have emerged on how Nigeria attained and surpassed the country’s 30 per cent target for broadband penetration in December 2018.

The Executive Commissioner, Stakeholder Management at the Nigerian Communications Commission (NCC), Mr. Sunday Dare, said at the weekend that the NCC used the UN data and available statistics as baseline in arriving at 30.9 per cent broadband penetration.

According to him, the UN data has been consistent over the years, adding that the same data is equally used by the International Telecoms Union (ITU), which is an arm of the United Nations that oversees global telecoms activities.

Dare noted that Nigerians predominantly relied on mobile networks to access the internet, including broadband networks, adding that broadband penetration is typically measured by the percentage of total population with access to broadband networks.

He, therefore, explained that although Nigeria had hovered around 21 and 22 per cent broadband penetration over the last couple of years, mobile subscribers in the country as at November 2018, reached a total of 168,729,005.

Of this figure, 108,457,051, subscribed to internet access services provided by the major operators.

“In terms of broadband services, a total of 58,965,478 were connected to the internet through 3G and 4G networks, including those provided by the Long Term Evolution (LTE)-only service providers, such as Smile and nTel,” Dare said.

According to him, NCC took the total active broadband subscription figure of 58,965,478 and divided it by the country’s population figure of 190,886,311, and multiplied it by a percentage of 100, using the UN’s projection as at December 2017, and arrived at a broadband penetration percentage of 30.9 per cent.

He said issues could of course be raised about using the UN figure as baseline, but he further explained that the NCC used that figure for consistency since that appears to be the baseline used by the ITU in its earlier studies.

“This is why the World Bank asserted that increasing broadband by just 10 per cent in developing economies would deliver at least 1.38 per cent GDP increase per capita, while a 10 per cent increase in internet penetration would lead to about 1.12 per cent increase in GDP per capita”, Dare added.

Although some stakeholders are still sceptical as to how Nigeria suddenly attained and surpassed the 30 per cent broadband penetration, since the country hovered around 21 and 22 per cent broadband penetration for too long, Dare clarified that mobile broadband usage among Nigerians surged with smartphone penetration, which gave it a further boost.

According to him, as Nigerians became heavy users of smartphones to access the internet on the go, broadband penetration in the country deepened.

“As everyone knows, telecoms networks and infrastructure are critical enablers for any nation desirous of participating in the opportunities driving the next phase of world economic growth. The fourth industrial revolution demands democratised access to super-fast networks and digital platforms. Indeed, emerging economies which underperformed in previous economic evolutions have a leapfrogging opportunity, which can be realised by giving their citizens affordable access to broadband networks and digital services,” Dare said.

He explained that although the telecoms sector was faced with challenges like Right of Way (RoW) charges, tedious approval processes across the states of the federation, issues with approvals for towers and masts, imposition of unstructured taxes and charges among others, the sector still managed to attain and surpass the 30 per cent broadband penetration target.

“Despite being dogged by a myriad of issues, the sector has always held its own. Its contributions to GDP have been contritely high, peaking at 10.43 per cent in the second quarter of 2018. It has continued to boost employment both directly and indirectly, and it has provided a strong infrastructure backbone, which has facilitated higher levels of efficiency in practically all other sectors of the economy. The attainment of 30 per cent broadband penetration indeed entitles the industry to a collective pat-on-the-back,” Dare said.

He added that the NCC’s assertion that Nigeria has attained 30.9 per cent broadband penetration was logical and supported by available data in the commission’s custody.

The federal government, in 2013, issued the National Broadband Plan (2013-2018), which sets penetration targets for both fixed and mobile broadband throughout Nigeria. Of the many targets set by the document, the most prominent one was the projection that Nigeria must reach 30 per cent broadband penetration by December 2018. There was however a large dose of pessimism about the country’s ability to reach this target before the December 31, 2018 deadline. But few months before the deadline, Nigeria narrowly reached and surpassed the 30 per cent broadband target.

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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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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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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