Business
Telecom firms threaten to reduce subscribers over high operation costs
Telecom firms threaten to reduce subscribers over high operation costs
In a surprising turn of events, Nigeria’s telecommunications sector is facing potential disruptions as leading telecom operators threaten to implement load shedding measures in response to the Nigerian Communications Commission’s (NCC) reluctance to address their demands for a tariff hike.
Telecom operators, citing the rising cost of operations, including the increased prices of diesel, infrastructure maintenance, and a depreciating naira, have called on the NCC to approve a tariff increase to help mitigate their financial burdens.
For instance, MTN, with a subscriber base of 79.7 million as of December 2023, reported a first loss after tax of N137 billion since its 2019 listing on the Nigerian Stock Exchange in 2023. The telco incurred FX losses of N740 billion ($815.79 million at N907.1/$)
Airtel Africa, which had 50.9 million subscribers in Nigeria as of March 2024, reported a loss after tax of $89 million for its full year ended March 2024, primarily due to FX headwinds in Nigeria and Malawi. It lost $1.26 billion to derivative and FX exposures, with $770 million attributed to the naira’s devaluation.
This has led to dwindled investment in the telecoms sector, the chief executive officer of Airtel Nigeria, Carl Cruz stated, adding that, “The devaluation of the Naira moving from N420/dollar to N760/dollar in a month’s time, to about N1500/dollar today, had indeed affected telecoms industry who rely heavily on importation of infrastructure to grow the sector.’
In the same vein, the CEO, MTN Nigeria, Karl Toriola, said operators are reluctant to invest, simply because of the high operating cost and the devaluation of naira, among other issues that have marred the growth of the sector.
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According to him, “the telecoms sector in Nigeria is now in an intensive care unit (ICU) gasping for breath, while calling on the government to intervene. The sector is facing a lot of challenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. To rescue the sector from collapsing, there is a need to increase prices of telecom services.”
Despite repeated pleas, the regulatory body has remained silent on the issue, causing frustration and uncertainty among industry players.
The situation has escalated, with telecom operators warning that if the tariff hike is not granted, they may be forced to adopt load shedding—a strategy that would involve rationing network availability during certain periods. This could lead to disruptions in mobile and internet services, affecting millions of Nigerians who rely on these services for communication, business, and access to essential information.
“With the high operating cost and the delay on the part of the government to allow operators to increase prices of telecoms services, operators may adopt the method of load shedding in the sector.
“We may decide to give network to some areas, while others may not have network, just to cut down operating cost for survival of the industry,” chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo told LEADERSHIP.
Meanwhile, the NCC has yet to release an official statement addressing the operators’ demands or the looming threat of service disruptions. A source in the Commission, told our correspondent, that NCC do not want to comment on the issue.
The reason for NCC’s silence is not far-fetched, the chief executive officer, Jidaw Systems Limited, Jide Awe, told LEADERSHIP, adding that “There are no easy answers. It’s essentially a dilemma that requires a balancing act to resolve. Nigeria’s telecom sector is really facing challenging times. The sector’s players are obviously grappling with increasing operational costs. On the other hand, consumers will be hard hit if NCC throws in the towel.
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“The operators argue with good reason that without increased tariffs, they may find it difficult to maintain service quality, sustain their infrastructure, invest in new technologies, or even remain financially viable.
“On the other hand, Nigerians are already under considerable financial strain due to the rising cost of living. Any increase in telecom tariffs could worsen this situation, making it more difficult for individuals and businesses to afford essential communication services.”
He therefore stated that while the cry of telecom operators is clear, it is equally essential to carefully consider the socio-economic impact on citizens, suggesting that the NCC must balance these two concerns – the needs of the telecom sector for continued growth and sustainability with the economic realities faced by Nigerian consumers.
For the meantime, the Nigerian Communications Satellite (NIGCOMSAT) Limited said it is seeking to partner with operators to ease the burden of dollars in securing infrastructure.
The head, marketing and stakeholders’ engagement, NIGCOMSAT, Olufunke Fagbeja, disclosed this, during an interview with journalists, at the KA-band VSAT Installation training in Lagos.
“We are taking steps to ensure or to foster this partnership. For example, we have been having talks with some operators in terms of strategic partnerships. So, this is something we’re working on and we believe it will bear fruit and we will see the value with regards to services.”
Speaking on easy access to telecom equipment, Fagbeja said, though NIGCOMSAT is not an Original Equipment Manufacturer (OEM) as it does not manufacture equipment, it has entered into partnership with manufacturers of some of the equipment needed in the telecom industry.
“We partner with these manufacturers and we purchase our equipment directly from them. What this means is that we can get the equipment at a better rate, at a discounted rate, to give to our customers like operators. So we can assist operators to get the equipment (at a much reduced price) needed to expand their operation in the country.
“We are also looking at producing some of the equipment locally, by empowering startups through the Accelerator programme. The programme is aimed at propelling advancements in satellite technology and bolster Nigeria’s position in the global tech arena,” she added.
Telecom firms threaten to reduce subscribers over high operation costs
Railway
British Museum, Oxford experts visit NRC Legacy Museum, seek heritage partnership
British Museum, Oxford experts visit NRC Legacy Museum, seek heritage partnership
A delegation of experts from the British Museum and University of Oxford has visited the Nigerian Railway Corporation (NRC) Legacy Museum, opening discussions on potential international collaboration to preserve and revitalise Nigeria’s railway heritage.
The familiarisation tour was led by Paul Bagu, alongside Mrs. Julia Hudson, as the team assessed the museum’s historical assets and conservation needs.
During the visit, the delegation toured key sections of the facility, including the iconic Old Running Shed, home to ageing locomotives and vintage coaches that reflect Nigeria’s rail transport evolution.
The experts expressed strong interest in restoration efforts, stressing the urgency of preserving the artefacts through technical support and global partnerships.
Describing the museum as a critical archive of Nigeria’s industrial past, Bagu noted that it holds “immense cultural and historical value,” adding that collaboration in conservation, restoration, and knowledge exchange would be vital to safeguarding the assets for future generations.
A major highlight of the tour was the historic coach used by Queen Elizabeth II during her visit to Nigeria.
The delegation pointed to the shared railway history between Britain and Nigeria as a strong foundation for deeper institutional partnerships.
“The historical links between Britain and Nigeria’s railway development present a unique opportunity to build enduring collaborations that celebrate this shared heritage,” Bagu said.
Drawing parallels from West Africa, he referenced a successful railway heritage initiative in Freetown, where sustained efforts by local enthusiasts have helped revive a once-dormant museum.
He urged similar grassroots commitment in Nigeria to complement institutional support.
President of the Legacy Museum Railway Compound, Mr. Taye Olaniyi, welcomed the delegation, describing the visit as a validation of the museum’s growing relevance.
He also acknowledged the contributions of retired NRC director, Mr. Nate Adediron, to the development of the facility.
“We are honoured to host our distinguished guests. Their visit underscores the importance of global partnerships in advancing our vision of making the NRC Legacy Museum a leading railway heritage centre in Africa,” Olaniyi said.
Providing technical depth to the engagement, Engr. Dr. Quadri A.T., Assistant Director (Mechanical) at NRC, briefed the visitors on the operation and maintenance of both legacy and modern locomotives.
His presentation highlighted ongoing efforts to preserve historical assets while aligning with contemporary rail development standards.
The delegation also explored thematic exhibits covering railway administration, Nigeria’s political evolution, and transitional milestones in national development—elements that reinforce the museum’s educational value.
Commending the initiative, Bagu encouraged greater public engagement, particularly among young Nigerians, to ensure long-term sustainability of heritage preservation efforts.
The visit concluded with the presentation of certificates to key contributors and institutions, followed by a group photograph session.
The engagement marks a significant step toward international collaboration and strengthens efforts to position the NRC Legacy Museum as a premier railway heritage destination in Africa.
Business
Tax Evasion: Lagos Government Sues Bi-Courtney, DAAR, 33 Others
Tax Evasion: Lagos Government Sues Bi-Courtney, DAAR, 33 Others
The Lagos State Government has initiated legal proceedings against 45 individuals and corporate entities over alleged unpaid taxes amounting to several billions of naira.
The cases have been filed before the state’s revenue court as part of intensified efforts to enforce compliance with tax regulations and improve internally generated revenue.
Prominent among those listed in the suits are Bi-Courtney Aviation Services, operators of the Murtala Muhammed Airport Terminal Two; DAAR Communications Plc, owners of Africa Independent Television; and Leaders & Company Limited, publishers of ThisDay newspaper.
Official figures indicate that Bi-Courtney Aviation Services allegedly owes N38.7 million, while DAAR Communications has an outstanding liability of N22.4 million. Leaders & Company Limited is also accused of defaulting on taxes to the tune of N67.1 million.
Other organisations identified as major defaulters include GMT Energy Resources Limited, with liabilities exceeding N145.8 million, and Sheriff Deputies Limited, which allegedly owes over N132.1 million.
The list further features companies such as Heyden Petroleum Limited, AA Rescue, and Primero Transport Services Limited, alongside several others with varying tax obligations.
Additional firms named in the court filings include IENG Nigeria Limited, James Fisher Nigeria Limited, V Care Diagnostics Limited, Venture Garden Nigeria Limited, Saro Africa International Limited, and Barry Callebaut Nigeria Limited.
Media and technology firms, including Native Media Limited, First Consulting Media & Centre Limited, and Eyowo Integrated Payments, were also listed as defendants.
The State Attorney-General and Commissioner for Justice, Lawal Pedro, disclosed that the decision to commence legal action followed repeated notices issued to the affected parties, which were ignored.
He noted that while individual tax liabilities range between N13.5 million and N35 million, corporate organisations account for the bulk of the outstanding sums.
Pedro explained that the state government resorted to litigation after the taxpayers failed to fulfil their statutory obligations or take advantage of opportunities provided to regularise their tax status.
He added that the enforcement initiative forms part of broader efforts to strengthen tax compliance and boost revenue required for infrastructure development and essential public services.
The Attorney-General further clarified that taxpayers who complied with pre-action notices and settled their outstanding liabilities would not be prosecuted.
He urged residents and business operators to adhere strictly to tax laws by filing annual returns and paying assessed taxes promptly, warning that continued default could attract penalties, interest, and further legal consequences.
Tax Evasion: Lagos Government Sues Bi-Courtney, DAAR, 33 Others
Business
US-Iran Conflict: MAN Outlines Urgent Steps to Shield Nigerian Manufacturers
US-Iran Conflict: MAN Outlines Urgent Steps to Shield Nigerian Manufacturers
The Manufacturers Association of Nigeria (MAN) has raised alarm over the escalating US-Iran conflict impact on Nigerian manufacturers, warning that the geopolitical tensions in the Middle East pose immediate, severe, and multi-layered risks to Nigeria’s industrial sector.
Director-General of MAN, Segun Ajayi-Kadir, said the sector is already feeling the effects of a global energy shock, noting that the industry’s projected 3.1% growth target for 2026 is now under serious threat.
He explained that manufacturers’ dependence on diesel and gas for production has left them highly vulnerable to rising global crude oil prices, which have pushed up domestic energy costs and significantly eroded profit margins.
“Energy cost escalation is biting hard. Many manufacturers are seeing their margins wiped out almost overnight,” Ajayi-Kadir said, highlighting the growing strain on operators.
The energy crisis in Nigeria’s manufacturing sector has been compounded by imported inflation, rising freight charges, and prolonged shipping delays. According to MAN, higher logistics and transportation costs are making the importation of critical raw materials increasingly expensive, thereby disrupting production cycles.
Ajayi-Kadir warned that the situation has created a double burden of rising production costs and weakening consumer demand, leaving many manufacturers with unsold inventories and shrinking revenues.
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“The implication is clear – production costs are rising sharply, while consumer purchasing power is weakening. Manufacturers are now battling both high costs and unsold inventories,” he said.
Beyond energy and logistics challenges, MAN noted that exchange rate volatility and limited access to foreign exchange have further complicated operations, making it difficult for manufacturers to source essential inputs.
To mitigate the crisis, MAN outlined several key measures to stabilise Nigeria’s manufacturing sector, urging the Federal Government to act swiftly.
The association called for the fast-tracking of the Presidential Compressed Natural Gas (CNG) initiative, which it believes will help industrial clusters reduce reliance on diesel and lower energy costs.
It also recommended the creation of a dedicated foreign exchange window by the Central Bank of Nigeria to ensure manufacturers have timely access to forex for importing raw materials and machinery.
In addition, MAN advocated for the domestication of petroleum supply chains, urging local refineries to prioritise supply to domestic manufacturers at competitive rates to cushion the impact of global oil price volatility.
To ease logistics pressures, the group proposed a six-month suspension of multiple taxation, haulage levies, and highway tolls, noting that transport-related costs have surged significantly.
“The current crisis is a stark reminder of Nigeria’s vulnerability to external shocks due to our dependence on imported inputs,” Ajayi-Kadir said, stressing the need for structural reforms.
He added that the situation presents an opportunity for Nigeria to pursue manufacturing self-sufficiency, reduce import dependence, and build a more resilient industrial base.
Industry analysts also warn that sectors such as chemicals, pharmaceuticals, food processing, and steel are particularly exposed due to their reliance on imported inputs and sensitivity to global price fluctuations.
MAN cautioned that failure to implement urgent interventions could lead to factory shutdowns, job losses, reduced industrial output, and a major setback to Nigeria’s industrialisation drive.
“We cannot control global geopolitics, but we can control our domestic response,” Ajayi-Kadir reiterated, urging policymakers to treat the situation as both a crisis and an opportunity to reposition Nigeria’s manufacturing sector for long-term sustainability.
US-Iran Conflict: MAN Outlines Urgent Steps to Shield Nigerian Manufacturers
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