Business News
Worrying trend as 9mobile loses over 3 million Subscribers in 2 years
There appears to be more worries for Nigeria’s telecommunication network, 9mobile, as the company lost 3.49 million internet subscribers in the last two years.
There appears to be more worries for Nigeria’s telecommunication network, 9mobile, as the company has lost 3.49 million internet subscribers in the last two years. According to a data obtained from the Nigerian Communications Commission (NCC), 9mobile’s mobile internet subscribers stood at 12.8 million in May 2017, but the figure dropped to 9.3 million in May 2019.
The data shows that 9mobile has continued to drop internet subscribers for several months. It also reveals that 9mobile has lost 532,489 internet subscribers in just five months of 2019.
Recent Industry Statistics: The latest statistics released by the NCC shows that the total number of mobile internet subscribers in Nigeria rose to 122.6 million in May 2019. This indicates a 3% increase from the 119.5 million subscribers in the previous month.
Number breakdown shows that within the past months (April-May 2019), MTN Nigeria added about 2.4 million internet subscribers. This makes it the largest gainer for the month.
The Second on the list is Airtel, with 595,093 internet subscribers added to its internet network, followed by Globacom which added 198,142. Meanwhile, Visafone added 8,991 while 9mobile recorded 595 thousand subscribers quitting its internet network.
Overall, MTN has 52.4 million internet subscribers, followed by Airtel with 31.9 million subscribers. Glo has 28.8 million, 9mobile has 9.35 million, while Visafone recorded 82,637 internet subscribers.
[READ ALSO: 9mobile drops again, as Nigeria’s mobile internet subscribers hit 115.9m]
The Market Share: As at the end of May 2019, MTN still controlled the lion share in the telecommunication market both in internet service provision and the overall market in terms of users. According to the NCC data,
- 43% of internet subscribers use MTN,
- 26% subscribed to Airtel,
- Globacom controls 24% of internet subscribers,
- 9mobile has only 8%, while
- Visafone controls less than 1% market share of internet subscribers.
In terms of the total number of subscribers, MTN Nigeria is the market leader as the telecoms giant boasts 64.8 million (37%) of the total subscribers.
[READ FURTHER: Telecoms operators fined N74 million for violating regulations]
- Airtel ranks second with 26% or 45.6 million subscribers.
- Globacom Nigeria is the third on the list, controlling 27% or 46.4 million subscribers.
- 9mobile comes 4th with 9% of total subscribers.
- Lastly, Visafone has 117 thousand subscribers, representing just 1% of total subscribers in Nigeria.
Some Worrying Trends: It should be noted that 9mobile has lost subscribers for two consecutive years. This implies that while the company keeps losing subscribers, other competing service providers are heightening strategies and jostling to add as many more users to their networks as possible.
For instance, the NCC data shows that MTN maintains its lead in the industry with over 50 million mobile internet subscribers while Airtel and Globacom are also on the rise.
What this implies: The face of Nigeria’s telecom industry is taking a new lift and 9mobile may not survive if the company’s downward trend lingers.
- For example, just weeks after the market leader, MTN Nigeria, got listed on the Nigerian Stock Exchange, Airtel Nigeria has also been listed.
- This somehow suggests that key players in the industry are witnessing growth and expansion, and Globacom may equally join the train as time goes by.
- It remains unknown if the take-over legal battle faced by 9Mobile for months could be contributing to the sustained decline in its market share.
In the meantime, as competition heightens in the industry, 9mobile will need a strategic push in order to remain relevant and active.
[ALSO READ: Mobile Internet Subscribers hit 114.7m, as 9mobile and Glo drop yet again]
Business
Update: FG extends second phase of eased lockdown by another 4 weeks
This is the third time the second phase of the eased lockdown is being extended.
President Muhammadu Buhari has approved the extension of the second phase of eased lockdown by another 4 weeks.
According to a monitored media report, this is the third time the second phase of the eased lockdown which is currently observed across the country is being extended
The disclosure was made by Boss Mustapha, the Secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19, during the Task Force briefing in Abuja on Thursday.
The Federal Government had on July 27 extended the current lockdown by an additional one week due to the Sallah celebration on July 29.
Mustapha disclosed that the extension followed the briefing and recommendation to President Muhammadu Buhari on Wednesday on the progress made so far by Presidential Task Force in containing the spread of Covid-19 and keeping citizens safe from contracting the virus.
The PTF Chairman noted that they made a couple of recommendations to the president and the extension of the current phase of ease of lockdown was one of the ones approved.
He revealed that in the recommendation that was made to the president about retaining the current phase of the lockdown, the PTF made some minor changes to address the economic, socio-political concerns of Nigerians.
Under the current extended second phase, the current curfew of 10 pm to 4 am is still in force, civil servants on grade level 12 and above are now to resume work fully and close by 4 pm and no longer 2 pm that currently operates. He, however, said that virtual meetings by government officials and parastatals will be maintained.
He also said that while the restrictions on recreational parks have been lifted for non-contact physical activities, the ban on entertainment centres will be sustained.
Mustapha explained that despite the accomplishments and challenges, some challenges continue to pose a considerable concern. Some of them include increased non-compliance with non-pharmaceutical prevention measures, lack of enforcement of necessary guidelines issued to preserve lives, insufficient engagement by some states with the national response, and lingering concern about the gap between identified cases and the actual burden of disease.
He also talked about apathy, fatigue and disbelief combining to challenge public enlightenment, compliance and behaviour change.
The SGF said that to address these challenges, the PTF decided that it was important to ensure that restrictions were not completely relaxed in order to control transmission.
He noted that it was also important that at this Community Transmission Phase of the pandemic, sub-national governments should step up to take more responsibilities by owning the response.
The various state authorities and the Federal Capital Territory were mandated to enforce non=pharmaceutical guidelines, the use of face masks in public appearances and places.
Corporate deals
Just In: Access Bank acquires Zambian Cavmont Bank Ltd
The statement from Access Bank says that the deal is a highly complementary transaction.
Access Bank Zambia, a subsidiary of Nigeria’s Access Bank Plc, has reached a ‘definitive agreement’ with Cavmont Capital Holdings Zambia Plc (CCHZ) to acquire Cavmont Bank Ltd.
The tier-1 bank announced this latest development regarding the merger talk which has been ongoing for a while, in a statement that was signed by its Company Secretary (Sunday Ekwochi) and issued to the Nigerian Stock Exchange earlier today.
According to the statement by Access Bank, the deal is a highly complementary transaction that is expected to combine Access Bank Zambia’s wholesale and trade finance capabilities with Cavmont Bank’s retail and commercial banking operations.
The proposed transaction which, in the meantime is still subject to relevant shareholder and regulatory approvals, is also expected to better position Access Bank Zambia as one of the top 10 banks in the Southern African country.
Customers from the enlarged bank will benefit from greater security offered by what will be one of the most capitalized banks in Zambia with a more diversified product and service offering and a broader geographical footprint and infrastructure.
Access Bank on its notification stated, ‘’Subsequent to our announcement on July 8, 2020, the Board of Access Bank Plc announces today that its subsidiary, Access Bank (Zambia) Limited, has entered into a definitive agreement with Cavmont Capital Holdings Zambia Plc (CCHZ) regarding proposed acquisition of Cavmont Bank Limited, a subsidiary of CCHZ and subsequent merger of Cavmont Bank’s operations into Access Bank Zambia. The proposed transaction, which remains subject to relevant shareholder and regulatory approvals, will position the enlarged Access Bank Zambia as one of the top 10 banks in Zambia and create the momentum to advance its strategic objectives.’’
‘’Under the terms of the agreement, Access Bank Zambia will acquire the entire issued ordinary share capital, assets and liabilities of Cavmont Bank while Capricom Group Limited, the ultimate majority shareholder of CCHZ will invest at least ZMW300 million ($16.5 million) of preference shares into Access Bank Zambia. Capricorn will hold preference shares in the enlarged Access Bank Zambia for a period of five years, after which the preference shares will be acquired by Access Bank Plc.’’
The statement also notes that the enlarged bank will be well placed to participate in the long-term economic growth of Zambia and will be predicated on the country’s vast reserves of natural resources and fast growing young population.
The transaction is expected to be completed during the fourth quarter of 2020.
Appointments
Nnaemeka Ewelukwa assumes office as new MD/CEO of NBET
Dr, Eweluka replaced the sacked Dr. Amobi as NBET Chief before full assumption in August 2020.
Dr Nnaemeka Ewelukwa has assumed office as the new Managing Director/Chief Executive Officer of the Nigerian Bulk Electricity Trading (NBET) Plc. This was announced earlier today by the Federal Government of Nigeria.
The new Managing Director and CEO of the Nigerian Bulk Electricity Trading PLC (@nbetnigeria), Dr. Nnaemeka Ewelukwa, has assumed office: https://t.co/lzIdxKLfrl pic.twitter.com/smgqb885J4
— Government of Nigeria (@NigeriaGov) August 6, 2020
The Backstory: In December 2019, the former CEO of NBET, Dr Marilyn Amobi, was suspended by Nigeria’s Minister of Power. This followed a series of complaints made against Dr Amobi who was appointed to the position in 2016. Following her sack, the Minister of Power also noted that he was seeking to bring sanity back to the system. A committee was also set up to investigate the many complaints against the former NBET CEO.
“In view of this, the minister has also directed the Constitution of a 5-man investigative committee to look into the myriads of complaints against the MD/CEO (of NBET) with the view of restoring sanity in the management of the company. Consequently, she is to handover to the most senior director in the organisation,” a statement issued by Aaron Artimas, the spokesman of the Minister of Power had read.
Interestingly, President Muhammadu Buhari reinstated Dr Amobi in January this year, but then finally sacked her later in June. Now, Dr, Eweluka, who was earlier announced as Amobi’s replacement, has now taken over.
Before now, Eweluka was appointed the General Counsel and Company Secretary of NBET in march 2012. He has also served as a Technical Adviser with the Presidential Task Force on Power (PTFP) where he was a member of the Regulatory and Transactions Monitoring Unit.
He graduated with an LLB from the University of Nigeria Nsukka, an LLM in International Business Law from the London School of Economics and a PhD from Queen Mary, University of London.
MTN, STANBIC, SEPLAT record gains, Nigerian bourse up in four straight days
Update: FG extends second phase of eased lockdown by another 4 weeks
Just In: Access Bank acquires Zambian Cavmont Bank Ltd
COVID-19 and its impact on the cement industry
Nnaemeka Ewelukwa assumes office as new MD/CEO of NBET
COVID-19 Update in Nigeria
Daily Parallel Market exchange rate – ₦486/$1
GTBank, Access Bank, others attract foreign investment worth $5.85 billion in Q1
Import substitution, devaluation spur revenue growth for Dangote Sugar
Number of new Bitcoin wallets hit 3 year-high
