Business News
A total of $70 billion has so far been invested in Nigeria’s telecom industry
Investments in the Nigerian telecoms sector have reached $70 billion (about N25.2 trillion), the Nigerian Communications Commission has confirmed.
Investments in the Nigerian telecoms sector have reached $70 billion (about N25.2 trillion), the Nigerian Communications Commission has confirmed.
The NCC’s Executive Vice Chairman/CEO, Prof Garba Dambatta, disclosed this yesterday at the maiden edition of Nigerian Telecom Leadership Summit which took place in Lagos. According to him, the sector’s contribution to the Gross Domestic Product in Q4 2018 was 9.85%, which translates to about N1.9 trillion when converted.
Dambatta added that Nigeria had over 63 million subscriptions on broadband and 173 million lines in the voice segment as of March 2019, representing 91% teledensity.
But more is needed: Interestingly, the sector requires an additional $30 billion worth of investment to extend telecom services to unserved areas, as well as to resolve other challenges.
Why this Matters: According to to Doyin Salami, an Associate Professor at the Lagos Business School who was present during the presentation, the investments would help to fully launch Nigeria into the Fourth Industrial Revolution by improving the quality of telecom services in the country.
The don commended the sector for performing well by emerging the fourth largest sector of the economy last year. Salami emphasised the country must resolve the multiple taxation bottleneck swiftly in order to woo investors to the sector.
He stated that upgrading the current 2G and 3G infrastructure required new investments, even as he asserted that “the future of telecoms is about co-creation.”
The problem of Multiple Taxation: He, however, identified multiple taxation as the bane of practically all the sectors of the economy, even though the telecoms industry was the most affected, he said.
In the same vein, the erstwhile Communication Minister, Mrs Omobola Johnson, also talked about the challenge of multiple taxation which predated her appointment as minister. According to her, the issue was yet to be resolved five years after exiting the ministry. She said the issue could be resolved with an executive order.
Meanwhile, Mrs Omobola Johnson also used the occasion to call for a role change/adjustment for the NCC. The regulator’s new role, according to her, should be in line with the emerging digitisation era. She made the call due to her belief that telecoms regulation era of merely licensing and providing level playing field is gone. By now, the NCC shouldn’t be regulating only telcos, she added.
Lending his voice, Gbenga Adebayo, Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON) said operators were faced with 39 different taxes and levies restricting the expansion of infrastructure in the country.
The Government’s Response: Reacting, the Vice President, Yemi Osinbajo, assured that the next level agenda would focus on making the business environment friendlier.
The VP, who was represented by Babafemi Ojudu, Special Adviser on Political Affairs, said President Buhari is passionate about bridging the digital divide in the country with the new policy direction.
Danbatta recalled that NCC had met with the Governor forum four times to enlighten governors on multiple taxation dangers.
“We are not repenting, we shall do more and engage them constructively,” Prof Danbatta remarked.
ENDSARS
South-West Governors say attacks in Lagos were attempts to weaken the region’s economy
South West governors have they described the coordinated attacks in the state as an attempt to weaken the region’s economy.
Governors of the South-West states have pledged their supports to their Lagos State counterpart, as they described the coordinated attacks in the state as an attempt to weaken the region’s economy.
This was disclosed by the Chief Press Secretary of the state, Gboyega Akosile, during the visits of the Governors and the Federal Executive Council members from SouthWest to the public assets and private properties destroyed in last Wednesday’s arson in the state.
READ: How to access new N75 billion Nigerian Youth Investment Fund
He tweeted, “Shock! This was the expression on the faces of the Federal Executive Council (FEC) members from Southwest and Governors as they toured the public assets and private properties destroyed in Wednesday’s coordinated arson in Lagos State.
“The delegation of Governors and Ministers was personally received by Sanwo-Olu at the State House in Marina, where the Lagos helmsman showed them the pictorial evidence of the violence before visiting some of the torched assets.”
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At a joint press conference held after the tour, Chairman of Southwest Governors’ Forum and Ondo State Governor, Arakunrin Rotimi Akeredolu, SAN, compared the scenes to a war zone, given the extent of the destruction.
According to him, the violence that resulted from the EndSARS protest left much to be desired, stressing that there was an agenda beyond the youth demonstration against police brutality.
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He said, “We are deeply concerned with the ease with which public buildings, utilities, police stations, and investment of our people have been burnt despite the proximity of security agencies in those areas.
Shock! This was the expression on the faces of the Federal Executive Council (FEC) members from Southwest and Governors as they toured the public assets and private properties destroyed in Wednesday's coordinated arson in Lagos State. pic.twitter.com/TahuPIWkcQ
— Gboyega Akosile (@gboyegaakosile) October 25, 2020
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What this means: From all indications, it is obvious that the South-West Governors believed that the said attack, which were rumoured to have been carried out by suspected hoodlums, were sponsored by some people to deliberately disorganize the region’s economy.
Business
#EndSARS Protest: 80 BRT buses worth N3.9 billion were destroyed by hoodlums – LASG
The Lagos State Government disclosed that the 84 BRT vehicles destroyed by the hoodlums cost a total of about N3.9 billion.
The Lagos State Government has revealed that 27 of the burnt Bus Rapid Transit (BRT) vehicles in the Oyingbo and Ojodu Berger areas of the state cost $200,000 each, while 57 of them cost $100,000 each, all totaling about N3.9 billion.
This statement was made by the Lagos State Government on Friday, after evaluating the extent of damage made to the Bus Rapid Transit (BRT) vehicles.
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What you should know
Few days ago, hoodlums hiding under the cover of #EndSARS protests allegedly attacked and razed the Oyingbo BRT terminal, with several buses burnt. Nairametrics reported that Primero Transport Services Ltd (PRT), the owners of BRT buses said they have lost over N100 million in 6 days due to the #EndSARS protests.
READ: Lagos Bus Service records 10 million passengers in 10 months
The State’s Commissioner for Information, Mr. Gbenga Omotosho, in an exclusive interview with Punch, disclosed that:
- 23 big BRT buses were razed down, while 57 medium-size BRT buses were affected by the violence, which brings the total of the BRT vehicles destroyed to 80.
- 23 of the 80 BRT buses burnt by the hoodlums were at Ojodu, while the remaining 57 were at the Oyingbo area.
- The big buses cost around $200,000 each, while the medium-size ones cost around $100,000 each.
READ: #EndSARS: Lagos orders investigation of Lekki Toll Plaza shooting
What they are saying
Mr. Omotosho said, “As I speak, the Governor and some of us are going around the state from one facility to the other. We are also visiting private facilities. Some of the places were the Oregun Vehicle Inspection Service office, the BRT park at Oyingbo, and the terminus at Ojodu Berger.
“I don’t know how they planned it; the hoodlums left the old buses and went for the new ones. The new ones were worth billions of naira.
READ: Operators of BRT suspend operations on Ikorodu-TBS route
“However, the cumulative losses incurred by the state are not ready yet. But it will be mind-boggling. It came on a scale beyond belief. We know that the police have apprehended suspects.”
What this means
The vehicles were purchased in dollars; So, the consistent decrease in the value of Naira is expected to edge the cost of these buses up, when denominated in Naira.
The Lagos State Commissioner for Information, Mr Gbenga Omotosho explained that with the current foreign exchange rate, the 80 destroyed BRT buses are now valued at N3.929 billion.
Business
BREAKING: Lagos State reviews curfew again, now from 8pm to 6am
Governor Babjide Sanwo-Olu has once again reviewed the curfew in the state to now commence between 8 pm to 6 am.
The Lagos State Governor, Babajide Sanwo-Olu, has further reviewed the curfew earlier imposed on the state to help contain the large scale violence following the hijacked #EndSARS protests against police brutality and extra-judicial killings. The curfew now starts at 8 pm and ends at 6 am daily.
This is coming 2 days after the Governor had eased the 24-hour curfew to start from 6 pm to 8 am daily.
This disclosure was made by the Lagos State Commissioner for Information and Strategy, Gbenga Omotoso, on Sunday, October 25, 2020.
The Commissioner in his statement said, “The curfew in Lagos State has been reviewed. Restriction time is now 8 pm to 6 am. Lagosians are enjoined to plan their journey times as they go about their lawful businesses. Public schools remain shut till further notice.”
What this means
This new review gives Lagosians an extra 4 hours to go about their daily activities.
What to expect
The Lagos State government will keep on reviewing and relaxing the curfew, as long as the security situation does not spike again.
Details later…
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