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Business News

Airtel loses over 100,000 subscribers in one month, as Glo chases MTN’s market share

Airtel lost over 100,000 subscribers in Nigeria between December 2019 and January 2020. While Airtel Nigeria’s subscribers declined,

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Airtel partners Western Union to expand its own mobile money service , Airtel loses over 100,000 subscribers in one month as Glo chases MTN's market share cvf

Despite massive media campaigns over the last few months, Airtel lost more than 100,000 subscribers in Nigeria between December 2019 and January 2020.

But while Airtel Nigeria’s subscriber base declined, it’s rivals –MTN Nigeria and Globacom–recorded growth in their total number of their respective active subscribers.

Based on the performance indicators for January, it appears that Airtel’s strategy of using top Nollywood actors in its numerous commercials have failed to appeal to market audiences.

(READ MORE: Airtel Africa receives NCC approval to acquire 10 MHz spectrum for $94 million)

Losers in the telco market

According to the telephone service report which was recently released by Nigerian Communications Commission (NCC), Airtel Nigeria accounted for 49.9 million subscribers in January 2020, a slight decline compared to the 50.1 million it had in December last year.

Note that Airtel and Globacom have recently been on each others’ jugulars, vying for market share in a bid to occupy the number two position in the Nigerian telecoms industry. But now that Globacom has finally pulled ahead of Airtel, the question remains about how long it can manage to maintain the number two position right behind MTN Nigeria.

In the meantime, 9mobile continues to struggle. The company, which was formerly known as Etisalat, has been losing its subscribers since a recent change in ownership led to a brand name change.

Based on the latest report by the NCC, 9mbile is now the highest loser, with its subscriber base declining by over 484,000 in January alone.

Regulation forces Airtel Africa to initiate shares listing in Malawi , Airtel loses over 100,000 subscribers in one month as Glo chases MTN's market share cvf

Prior to January 2020, 9mobile had 13.6 million subscribers in December. That number now stands at 13.1 million. The last time the network provider surpassed 15 million active subscribers was in May last year.

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The gainers of the telco market

The NCC report showed that Globacom’s subscriber based increased by 55,509 to hit 51.75 million in January, up from 51.70 million in December 2019. It is believed that the surge in Globacom’s subscribers has been its aggressive marketing which has helped it to secure 27.85% of the market share.

Just like Airtel Nigeria, the Mike Adenuga-owned company has been using top celebrities to push for market share. Luckily for Globacom, the expensive media budget has been reflective on its subscriber base. Unfortunately, the same cannot quite be said for Airtel Nigeria which holds 26.92% of the market.

(READ MORE: Data War: MTN gains 8.18 million subscribers, as Airtel edges Glo, 9mobile in 2019)

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On its part, MTN Nigeria has continued  to maintain its position as the leader in the Nigerian telecoms industry. The company was the biggest gainer in the month of January, having added 1.93 million subscribers to its already existing 68.7 million subscribers as of December. This has, therefore, increased MTN’s total active subscribers to 70.6 million in January 2020.

This means the Y’ellow firm account for 38.06% of the market share. Altogether, the industry recorded an increase from 184.4 million telephone subscribers in December to 185.7 million subscribers in January 2020.

Data war changes the status quo

While Globacom is ahead of Airtel Nigeria in total subscribers, Airtel Nigeria is second highest in terms of data; right behind MTN Nigeria. Airtel Nigeria’s data subscribers increased to 35.5 million in January from 34.5 million.

Globacom was behind with 29.2 million subscribers , although this is an increase compared to the 28.9 million it recorded in December 2019.
The difference between Airtel and Globacom in the total number of data subscriber is network service for browsing.Globacom users have often complained about poor network service.

In the data war, MTN Nigeria held no punches in its bid to dominate the market. The company continues to lead in both total active subscribers and data subscribers. MTN Nigeria’s subscribers increased to 55 million in January from 54 million in. December.

But while MTN Nigeria, Airtel Nigeria, and Globacom experienced a surge in their subscriber base, 9mobile keep declining. The company’s total data subscriber base dropped from 8.06 million in December to 8.04 million in January. 

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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      Business

      Cement prices surge in South East as scarcity, price hike hit North East

      Prices of cement have risen by 67% in many Southeastern states and by 40% as observed in northern states including Bauchi, Gombe, Borno, others.

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      The prices of cement have risen by 67% in the South-East states of Abia, Anambra, Ebonyi, Enugu and Imo.

      This is as some residents of the North-Eastern part of the country also complained of price hike of cement, which they attributed to the scarcity of the product and the activities of middlemen who try to capitalize on the situation.

      According to a report from the News Agency of Nigeria (NAN), a market survey conducted at various wholesale and retail shops in the eastern zone shows that the price of the product has almost doubled when compared to the price in 2020.

      What the cement traders in the eastern states are saying

      A cement dealer at Kenyetta Market in Enugu State, Mr Ifeanyi Amadi, said the increase in the price of the product which started last year was due to the Covid-19 pandemic and increase in dollar exchange.

      He pointed out that a trailer load of Dangote cement with 600 bags, which sold for N1.5 million in 2020, sold for N2.3 million in the first quarter of 2021.

      Another retailer, Samuel Uwakwe, noted that a bag of Dangote Cement now goes for N3,900, Unicem for N3,700; BUA Cement for N3,700 and Kogi Super Cement for N3,600.

      While begging the suppliers to reduce the price and make the product available, Uwakwe expressed his reservations at few individuals being given the opportunity to supply the product noting that the prices would likely crash during raining season.

      In Abia, a cross-section of residents of Umuahia, the state capital, also decried the high price of cement, which ranges from N4,000 to N4,100 per 50kg bag.

      Those who spoke to NAN said the price hike had further dashed the hope of many Nigerians, wishing to own their personal homes.

      A businessman, Mr Victor Ugwu, said he had to suspend his building project because of the current development as he could not afford to continue with the current price of the commodity.

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      He said,  “I think the hike can be attributed to the monopoly being enjoyed by the cement producers in the country. Unfortunately, there may not be any respite until that monopoly is broken.”

      However, a cement dealer, Mr James Ogbonna, said the price increase had nothing to do with the manufacturers of the commodity but rather put the blame on the activities of shylock distributors of cement.

      He said, “In the first and second week of March, we sold a bag for N3,200, but within the third week we started selling at N3,500. By the end of March, the price moved up to N4,000 and now, we sell between N4,000 and N4100, depending on the brand.”

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      A cement dealer in Awka, Mr Kenechukwu Okoye, said before the #EndSARS protest in 2020, a 50kg bag of cement was sold at N2,500 bur rose to N3,000 immediately after the protest and from there to the current price of N4,000 and N4,100.

      The survey also says that in Owerri, the Imo state capital, the price of cement is between N3,850 and N4300, depending on the brand.

      At the building materials Market in Naze, Owerri North Local Government Area, Dangote and BUA cement are sold at N4,000 per bag while BUA and UNICEM are sold for N3,900.

      Mr Okechukwu Okonya, a seller, said the cost could be attributed to the high cost of transportation as a result of fuel price increase adding that major dealers sometimes hoard the product in their warehouses to create artificial scarcity.

      The survey report says that in Abakaliki, Ebonyi, prices of almost all building materials have gone up, with Dangote and Bua which sold for N2,500 earlier in November and December 2020 now selling for between N4000 and N4500.

      Similarly, Unicem cement which also sold at N2,300 within the same period had also gone up to N4,000 and N4,300.

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      Similar price increase in North East

      The survey report in Bauchi, Gombe, Borno, Yobe, Adamawa and Jigawa, shows an average of 40% increase in price.

      According to the respondents, this could be attributed to the outbreak of Covid-19 which affected production in factories, while demand kept rising.

      Others, however, blamed the hike on the high cost of transportation and other sundry activities associated with the business of procurement and sales of cement in the country.

      Malam Ibrahim Sanusi, a cement dealer at the Gombe main market described the hike as outrageous when compared with the price of the same commodity the previous year.

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      He said that a bag of Dangote brand which he bought for N2,400 and sold for N2, 500, is bought for N4,000 from their depot in Gombe and sold for N4,200.

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      Energy

      Carbon Tax: A market-based alternative to carbon emissions in Nigeria

      A carbon tax is a way to have users of carbon fuels pay for the climate damage caused by releasing carbon dioxide into the atmosphere.

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      climate, Understanding Carbon Credits and Carbon Offset market

      Fossil Fuel is hurting us. It is an undeniable truth. I have heard in many conversations more often than not a very solid support for the fossil industry. Rather simple conversations on its perils and disadvantages always end with resignation by the other party that “fossil has come to stay.”

      While not doubting that premise, I rather believe a lot can be done to limit the harmful effect of what is here to stay with us. A lot can be said about how beneficial fossil fuel is to the economy and how it is initially cheaper and more available but, in truth, the harms still exists.

      Sadly, these harms are more than good. The clarion call to stop these emissions has been on for a very long time, but the reality remains the attention span of the larger consumer population is very very short when it comes to that discourse.

      I would say, the essence and need for us to look to further means to mitigate the harm from fossil fuel is not just for a cleaner environment but also for an environment to still exist. The constant clamour for a change in our perspective is not just for the growth of the alternative sector but also a struggle for survival, because we will all lose if we do not stop.

      Now, since we have declared to ourselves that we wouldn’t stop, it only makes sense if we can effectively checkmate how we continue with fossil, adopt Carbon Capture techniques and in an attempt to make sure no one goes overboard, impose fines on the amount on those that burn beyond their limit and on fossil that enters the country. This is a concept that, rather thankfully, already exists. Carbon Tax.

      A carbon tax is a fee imposed on the burning of carbon-based fuels (coal, oil, gas). A carbon tax is a way — the only way, really — to have users of carbon fuels pay for the climate damage caused by releasing carbon dioxide into the atmosphere.

      It is a market-based alternative that helps the government reduce the carbon footprint and also allows them make money as a government when there is a breach of this solemn oath to stay in check. In Nigeria, The Carbon Tax Act came into force on 1 June 2019. The carbon tax was designed to apply to direct emissions in the following categories as specified in the National Greenhouse Gas Emission Reporting Regulations:

      • Fuel combustion, which relates to emissions released from fuel combustion activities;
      • Fugitive emissions from fuels, which relates to emissions mainly released from the extraction, production, processing, and distribution of fossil fuels; and
      • Industrial processes emissions, which relates to emissions released from the consumption of carbonates and the use of fuels as feedstock or as carbon reductants, and the emission of synthetic gases in particular cases.

      It is trite to say that this entire scheme is altogether ineffective and barely surviving. It is sad to note because there are numerous benefits to Carbon Tax. The advantages of doing this asides still having a healthy civilization in the next 100 years are numerous. First, it would be creating a very profitable system of revenue for the government. Here, the government will not need to spend much on the initial cost of having this revenue stream in place. Aside from the need to establish an agency to enforce the limits and payment of fines and the adequate system of calculating and verifying the amount consumed, the expenses on the government is almost Zero. This agency unlike many others in this country will be more active than idle, considering the existence of various fossil burning industries in Nigeria and being largely oil-dependent.

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      Secondly, this would help Nigeria join the global effort to reduce the carbon footprint and in turn put Nigeria on the good pages of the global community as a contributor to green energy. This will birth a host of benefits for the Nigerian Community and also assist the domestic green energy advocates.

      Furthermore, this system will help to promote the alternative energy industry. The renewable energy industry will from this initiative be able to sufficiently measure the actual impact of their activities on the environment and the economy as well as challenge the growth of new innovations to grow it. The campaigns will no longer be dependent on cancelling out the large emissions killing the environment since more revenue now streams for the government from them, but to the actual direct benefits of renewable energy.

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      This alternative will also assist the government in assessing the benefits of reducing emissions and growing the renewable energy industry. The implementation of this will serve as a step for the assessment and understanding of the dynamics, policies and funding needed for the full inevitable integration of Green Energy.

      The advantages are numerous and as such need Carbon Taxing to be revived in the country. In all sincerity to the dynamics of Nigerian politics and due respect to our exalted government, it is almost too easy for these things to be put in place seeing they will also have a fresh channel to loot from while saving our dear lives and making the air cleaner. A Win-Win for all the parties involved.

       

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      Written by Ude Fortune Chiziterem

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