Business

Telecoms Sector Recorded N3.247trn Revenue, N1.7trn Operating Cost in 2021

Published

3 years ago

June 17, 2022

Despite harsh operating environment, telecom operators comprising of GSM operators, fixed wired operators, internet service providers (ISPs), value added service (VAS) operators, collocation and infrastructure sharing operators, as well as other telecoms operators, recorded N3.247 trillion revenue, with total operating cost of N1.7 trillion in 2021.

According to the statistics posted yesterday on the official website of the Nigerian Communications Commission (NCC), the regulator said the collation was based on the submission it received from the telecom service providers for the year ended December 2021.

It also showed that capital expenditure (domestic investment) stood at N1, 24,116,990,000.00 as at the end of 2021, based on submissions from responsive licensees.

According to the statistics, capital flow (foreign direct investment) into the Nigerian telecoms industry in 2021 was approximately $417 billion as against $942 million it was in 2019.

A breakdown of the figures showed that Global System for Mobile Communications (GSM) operators alone raked in a total revenue of N2.7 trillion, while fixed wired operators recorded N375 billion. Similarly, internet service providers raked in N59 billion, while VAS providers recorded N32 billion. In the same vein, collocation and infrastructure sharing operators raked in N3 billion, while other telecom operators recorded N2.44 billion, amounting to a total of N3.247 trillion revenue generation in 2021.

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The data showed that a total of 49, 579 towers were recorded from mobile and fixed operators as well as collocation and infrastructure companies. The operators also reported a total number of 38,288 Base Stations.
iMicrowave coverage in 2021, at 290,940.69km, which covered the mobile and fixed Operators.

Furthermore, the data showed that mobile, fixed and other operators recorded a total number of 99 gateways in use in the industry as at December 2021, while fiber optics deployment stood at 86,057km, which included terrestrial fiber and submarine cable as at December 2021.

The NCC figures also showed that telecom subscriber number decreased from 204,601,313 in 2020, to 195,463,898 active voice subscriptions as at December 2021, which was a loss of 9,137,415 subscriptions.

This represented about 4.46 per cent decline in total subscription within the period under consideration.
However, the NCC attributed the decrease in operators’ subscriber base, majorly to the effect of the directive from the Commission in December 2020 to all GSM operators to suspend the sale and registration of new SIMs, SIM swaps and all porting activities.

The objective of the audit exercise was to verify and ensure compliance by Mobile Network Operators with the set quality standards and requirements of SIM Card registration as issued by the Federal Ministry of Communications and Digital Economy and the Commission.

In the area of teledensity, the data showed that Nigeria`s teledensity decreased from 107.18 per cent as at December 2020 to 102.40 per cent by December 31st 2021.

The number of internet subscribers also decreased from 154,318,925 subscriptions as at December 2020, to 141,994,285 subscriptions as at December 2021 representing a decline of 8 per cent.

Broadband penetration also decreased from 45.02 per cent as at December 2020 to 40.88 per cent as at December, 2021. Similarly, Broadband subscriptions decreased from 85,941,222 subscriptions in December 2020 to 78,041,883 subscriptions as at December 2021.

The statistics however showed an increase in internet usage as there was an increase in the volume of data consumed in the year ended December 2021 when compared with the year ended December 2020.

The total volume of data consumed by subscribers increased to 353,118.89TB as at December 2021 from 209,917.40TB as at December 2020. This represents an increase of 68.2 per cent in data consumption within the period.
Telecom contribution Gross Domestic Products increased from 12.45 per cent in the fourth quarter, 2020 to 12.61 per cent in the fourth quarter of 2021, the NCC figures further revealed.

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Related Topics:Operating Cost revenue telecoms

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Lagos Rail Mass Transit part of FG free train ride – NRC

Published

8 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

9 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

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Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

1 day ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.