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

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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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Naira loses N81 to dollar in one day

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Naira loses N81 to dollar in one day

The naira lost N81.34 against the US dollar at the foreign exchange market on Thursday

FMDQ data showed that the naira fell to N1,154.08 per dollar on Thursday from N1,072.74 on Wednesday.

This represents a 7.04 per cent loss against the dollar compared to N1,072.74 per dollar traded the previous day.

At the parallel market, the naira also depreciated N1,100 per dollar on Thursday from N1, 040 on Wednesday.

This is the second time the naira would be depreciating against the dollar in three days amid fears of depleting foreign exchange reserves.

Nigeria’s foreign reserves dropped to $32.29 billion as of April 15.

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Govt paying N600bn for fuel subsidy monthly — Rainoil CEO

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Govt paying N600bn for fuel subsidy monthly — Rainoil CEO

The CEO of Rainoil Limited, Gabriel Ogbechie, has claimed that the federal government resumed the payment of the controversial fuel subsidy following the devaluation of the Naira in the foreign exchange market.

Ogbechie made this statement on Tuesday during the Stanbic IBTC Energy and Infrastructure Breakfast Session held in Lagos.

He pointed out that with Nigeria’s daily fuel usage at 40 million liters and the foreign exchange rate at N1,300, the government’s subsidy per liter of fuel falls between N400 and N500, culminating in a monthly total of approximately N600 billion.

He said; “When Mr. President came in May last year, one of the things he said was that Subsidy is gone. And  truly, the subsidy was gone, because immediately the price of fuel moved from 200 to 500 per liter. At that point truly, subsidy was gone.

“During that period, Dollar was exchanging for N460, but a few weeks later, the government devalued the exchange rate. And Dollar moved to about N750. At that point, subsidy was beginning to come back.

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“The moment the two markets officially closed, officially the market went to about N1,300. At that point, that conversation was out of the window. Subsidy was fully back on petrol. If you want to know where petrol should be, just look at where diesel is. Diesel is about N1,300 and petrol is still selling for N600.

Furthermore, he said that NNPC being the only petrol importer in the country implies that there is an ongoing subsidy, as prices had to be fixed.

Earlier yesterday, the former governor of Kaduna State, Nasir El Rufai, said the federal government is spending more on petrol subsidy than before.

In addition, the Special Adviser to the President on Energy, Mrs. Olu Veŕheijen, said that the Federal Government reserves the right to pay fuel subsidy intermittently to cushion hardship in the country.

“The subsidy was removed on May 29. However, the government has the prerogative to maintain price stability to address social unrest. They reserve the right to intervene.

“If the government feels that it cannot continue to allow prices to fluctuate due to high inflation and exchange rates, the government reserves the right to intervene intermittently and that does not negate the fact that subsidy has been removed,” she said.

Govt paying N600bn for fuel subsidy monthly — Rainoil CEO

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Breaking: Dangote brings diesel price down to N1000/litre

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Breaking: Dangote brings diesel price down to N1000/litre

Dangote Petroleum Refinery has announced a further reduction in the price of diesel.

When it commenced operation a few weeks ago, Dangote Petroleum Refinery pegged the price of diesel as N1,200.

While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 percent reduction from the previous market price of about N1,600 per litre.

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However, on Tuesday, a further reduction of N200 was noticed in the price, with the product now pegged at N1,000.

This significant reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.

The President of Dangote Group, Aliko Dangote, had during the Eid-el-Fitr celebration said if the cost price of diesel comes down, the inflation rate will be substantially reduced.

Dangote spoke when he visited President Bola Tinubu in his residence in Lagos State to celebrate the end of the Ramadan fast with him.

Breaking: Dangote brings diesel price down to N1000/litre

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