Telecom
Telcos Scale Down on Network Investments to Reduce Forex Losses
MTN Nigeria Communications Plc and Airtel Africa Plc have reduced investments in network infrastructure to focus on minimising foreign exchange (FX) exposure and managing rising operational costs.
According to businessday.ng, this was detailed in their financial statements for the nine months ending September 2024.
Their strategy aligns with earlier forecasts of decreased capital expenditure (capex) due to foreign exchange (FX)-induced losses in 2023 and 2024.
In recent weeks, Nigeria’s network quality has declined, a situation that Gbenga Adebayo, chairman of the Association of Licensed Telcom Operators of Nigeria (ALTON), attributed to reduced investments in the sector.
GSMA, the global telecom body, has warned that lower capex could lead to a shrinking telecom sector, resulting in poorer service quality and slower coverage expansion.
“The overall financial performance of the industry in recent years has not been sufficient to support the capital-intensive nature of the business,” it said.
Karl Toriola, chief executive officer of MTN Nigeria, recently noted that investments would not flow into a sector that cannot promise returns. “We are in a big crisis,” he said.
MTNN’s core capex spending fell by 27.79 percent to N217.64 billion from N301.38 billion year-on-year (y-o-y).
“Excluding leases, our core capex declined by 27.8 percent, resulting in a capex intensity of 9.8 percent on this basis. The optimisation of core capex enabled us to accelerate the reduction of forex exposure arising from our LC-backed obligations and its impact on the business,” MTNN said.
Airtel Nigeria’s capex fell 36.59 percent to $149 million in the first nine months of 2024 from $235 million in the corresponding period of 2023.
“Operating free cash flow was $163 million, up by 73.7 percent in constant currency, largely due to the constant currency EBITDA growth and lower capex while in reported currency,” Airtel said.
This slowdown coincides with reduced revenue earnings for Airtel and reported losses for MTNN. A Central Bank of Nigeria (CBN) unification of the foreign exchange market in June 2023 triggered a sharp devaluation of the naira, which plummeted from N471/$ before the move to N1043.09/$ by December 28, 2023, and N1676.90/$ by November 4, 2024.
Airtel Nigeria’s revenue fell 46.9 percent to $755 million, while MTNN’s losses increased from N14.99 billion to N514.93 billion, despite service revenue growing by 33.7 percent to N2.37 trillion.
Over the last two years, MTN has spent N1.08 trillion on capex, with Airtel Nigeria spending $545 million in the same period. Both declared FX losses of $1.56 billion in 2023.
Beyond FX losses, surging energy costs have also strained the operating budgets of telcos.
“Average diesel prices in Nigeria increased by approximately 90 percent compared to the prior period,” Airtel stated.
MTNN’s operating expense increased by 95.87 percent to N1.13 trillion from N575.46 billion.
With the introduction of Travel Saga, a premium, fast-paced gaming experience that is currently live and accessible to customers on its network, Globacom has lifted the bar for mobile entertainment in the country.
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Fundamentally, Travel Saga takes users on quick virtual journeys against recognizable international landscapes. In a dynamic, ever-evolving gaming environment, players are thrown into furious missions, fierce fights, and ever-expanding tales where talent, strategy, and endurance determine who rises through the ranks to become a true war hero.
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SHELT, a leading cybersecurity-as-a-service provider, has earned inclusion in the 2025 MSSP 250, the annual ranking of the world’s top 250 Managed Security Service Providers (MSSPs) by MSSP Alert, a CyberRisk Alliance publication.
SHELT
The list evaluates firms on business performance, service breadth, and industry impact, spotlighting those excelling in growth, operational excellence, and advanced managed security amid rising cyber threats. Selection criteria include annual recurring revenue, profitability, workforce expansion, business growth, and the depth of managed security offerings.
SHELT’s recognition underscores its investments in scalable security operations, threat intelligence, and tailored managed services across multiple regions, enabling clients to navigate complex risk landscapes effectively.
“Being recognised in the MSSP 250 is a meaningful milestone for our team,” stated Youssef Abillama, CEO of SHELT. “It validates our focus on building practical, resilient security services that help organisations manage risk and respond effectively to today’s evolving cyber threats.”
The company hailed the honour as testament to its teams’ dedication and expertise worldwide, reaffirming commitment to enhancing capabilities and delivering trusted cybersecurity solutions.
Meta Platforms, owner of Facebook, has appointed Dina Powell McCormick, a former adviser to President Donald Trump, as its new president and vice chairman, bolstering its leadership amid aggressive AI and infrastructure expansion.
Dina Powell McCormick
The announcement, made on Monday, positions Powell McCormick – who recently stepped down from Meta’s board after eight months – to guide overall strategy, including multi-billion-dollar investments in data centres and global partnerships.
A Goldman Sachs veteran with 16 years in senior roles and prior stints as deputy national security adviser under Trump and in the Bush administration, she brings deep finance and international ties to the role.
Meta CEO Mark Zuckerberg hailed her as “uniquely qualified” for the company’s next growth phase, while President Trump praised the move on Truth Social as a “fantastic choice”.
The hire signals Meta’s efforts to strengthen White House relations, following recent dinners with Trump and U.S. investment pledges worth hundreds of billions
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