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ALTON Urges CBN to Prioritize Allocation of Forex to Telcos

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The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has drawn the attention of the Executive Vice Chairman (EVC), Nigerian Communications Commission (NCC) to the challenges its members are having in purchasing Foreign Exchange (FX) from Interbank Market to fulfill obligations to Equipment Suppliers and Foreign Vendors. 

The situation, according to a statement signed by Engr. Gbenga Adebayo, chairman of the Association, is adversely impacting its members’ network operations and would appreciate the Commission’s urgent assistance.

“The prevailing scarcity of FX has occasioned a situation where the Banks are unable to obtain FX for an upward period of six months despite the submission of pre-requisite documentation for such transactions.”

ALTON is seeking the indulgence of the EVC to provide background information resulting to the subsisting regime of exempting Telecommunications Industry from the Central Bank of Nigeria (CBN) intervention window.

ALTON added that: “in November 2014, the CBN excluded telecommunications equipment and invisibles from the Retail Dutch Auction System (RDAS), where the exchange rate was N155/$. ALTON members were mandated to purchase FX from Interbank at the rate of N199/$.

The CBN subsequently introduced a floating FX regime at the interbank market and cleared 3 months backlogs at N280/$ and this technically moved the exchange rate from N199/$ to N280 levels.

“The CBN subsequently issued another circular mandating Banks effective 22 August 2016 to sell 60% of all FX availability irrespective of source of inflows to the manufacturing sector and the balance (i.e. 40%) to other sectors. This directive tactically closed FX inflows even from parent companies of ALTON’s members, thereby exacerbating the impact of the Illiquid FX market on our members operations and the industry at large.

“The CBN further requested Banks on 14 October 2016 to submit all outstanding FX requests for Manufacturing, Agriculture and Airlines Sectors to enable it sell 2 months Forwards, whilst the equipment imported by the Telecommunications Industries either via Letters of Credit or Certificate of Capital Importation (based on deferred payment terms) were excluded from the intervention.”

ALTON stated that telecommunications service providers are similar to manufacturing firms and deserve to be treated in the same manner. 

The core network equipment and other auxiliary equipment procured for providing Voice and Data Services are equivalent to plant and machinery acquired by the manufacturing firms for the production of goods and services in the country.

In addition, Telecommunications Sector is termed “infrastructure of infrastructures” and Social Overhead Capital which propels productivity in other sectors of the economy. 

The multiplier effects of efficient and reliable telecommunications services on other spheres of the economy, such as banking, aviation and hospitality cannot be overemphasized.

ALTON is of the opinion that Telecommunications Sector deserves to be supported through direct FX allocation from the CBN interventions. 

This will facilitate the deployment of pervasive broadband network nationwide and ensure that the country retains its prime position, as the largest Telecommunications market in Africa ahead of South Africa in terms of subscriber base.

Impact of the Subsisting FX Regime on Telecommunications Sector
The exemption of Telecommunications Equipment and Services from items to be accorded priority in the allocation of FX by the Banks has adversely impacted the industry as follows:
– Increased Operating Cost: In the absence of local substitutes for its plant and machinery, the Telecommunications Service Providers are constrained to source FX from interbank market at higher rates compared to other sectors such as Manufacturing, Aviation and Agriculture accorded priority in FX allocation at reduced rates by the CBN.  Owing to the prevailing economic situation in the country, ALTON members cannot transfer the increased cost burden to the consumers, thereby contracting profitability and ability to make further investment to drive growth in the industry.

– Unfavourable Credit Terms: The prevailing scarcity of FX in the country has made it very challenging for ALTON members to honour their obligations to foreign vendors as at when due.  This has occasioned delayed payment to Equipment Suppliers and other foreign vendors, who have now resorted to imposing unfavourable payment terms on Telecommunications Service Providers in Nigeria.  Some of the Foreign Vendors had issued Notice of Disconnection of service, which could disrupt service availability with attendant impact on customers’ experience.  This further underscores the need for an urgent action to be taken towards addressing the lingering scarcity of FX facing the industry.

–  Delayed implementation of Network Enhancement and Improvement Initiatives:  Recall that ALTON members made commitments intended to ensure the implementation of National Quality of Service (QoS) Fixing Project.  This is a coordinated network investment plan supervised by the Commission at designated locations nationwide over a period of time by the Telecommunications Service Providers to ensure improved QoS.  The continuity of this initiative is dependent on obtaining FX to import equipment required to carry out the intended National QoS Fixing Project.  ALTON is of the view that if proactive measures are not taken to ensure easy access to FX, the National QoS Fixing Project is likely to be adversely impacted to the detriment of the citizenry and economy.

– Affect National Broadband Plan:  The Government in 2013 published a National Broadband Plan (2013 – 2018) intended to ensure the deployment of pervasive and ubiquitous broadband infrastructure nationwide to facilitate the realisation of a fivefold increase in broadband penetration from 6% as at 2012 to 30% in 2018. On this note, the Commission divided the country into seven (7) Zones and has licensed two Infrastructure Companies (InfraCos) for Lagos and North Central Zones to deploy metro fibre optic network. The Commission recently published a notice on the commencement of the process for the licensing of InfraCos on Open Access Model for the deployment of optic fibre infrastructure broadband network in the other zones (i.e. North East, North West, South South, South East and South West) of the country.

It appears that the prevailing scarcity of FX has adversely impacted the deployment of metro fibre network, as the earlier licensed InfraCos are yet to make significant progress in the deployment of optic fibre across their respective licensed locations, hence the need for strategic support to the Telecommunications Service Providers by ensuring easy access to FX to import required equipment and undertake the pending projects, as well as fulfill outstanding obligations to Foreign Vendors without further delay for the continued growth and development of the industry.


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NCC Begins Review of Nigeria Telecoms Policy after 26 Years

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Nigerian Communications Commission (NCC) has commenced a review of Nigeria’s 26-year-old telecommunications policy, saying the current framework no longer reflects the realities of the country’s fast-changing digital economy.

NCC  Begins Review of Nigeria Telecoms Policy after 26 Years

Aminu Maida, EVC, NCC

Speaking  at the national telecommunications policy review workshop in Lagos, Hadiza Usman, special adviser to the president on policy and coordination, said the review had become necessary because Nigeria’s economy, technology ecosystem, and security environment had changed significantly since the national telecommunications policy was introduced in 2000.

“A policy that was fit for purpose in the year 2000 cannot simply be assumed to remain adequate in 2026,” Usman said.

She said telecommunications had evolved beyond voice connectivity and now supports financial technology, digital commerce, education, healthcare, agriculture, innovation, public service delivery, and national security operations.

“Telecommunications is no longer a standalone sector. It is an enabling platform for almost every other sector of national life,” she said.

Usman warned that outdated or poorly coordinated policies weaken implementation, discourage investment, create institutional overlaps, and reduce measurable national impact.

According to her, the revised framework must address broadband penetration, affordability of digital access, quality of service, infrastructure resilience, consumer protection, and inclusion of underserved communities.

“The revised policy must not become another document that sits on shelves. It must become a working instrument,” she said.

The presidential aide also identified fibre cuts, vandalism, multiple taxation, delayed approvals, right-of-way bottlenecks, insecurity, and energy constraints as major obstacles slowing telecommunications infrastructure expansion across the country.

She said resolving the challenges would require coordinated action among federal institutions, state governments, local authorities, regulators, operators, investors, and infrastructure providers.

Earlier, Aminu Maida, executive vice-chairman (EVC) of the NCC, said the telecommunications industry had outgrown the assumptions behind the national telecommunications policy 2000.

Maida said the policy was introduced at a time when Nigeria’s focus was on liberalisation, competition, increased access, and private sector participation in telecommunications services.

According to the EVC, the industry has since evolved into a broader digital ecosystem supporting banking, commerce, education, cloud services, entertainment, digital identity systems, and government operations.

“This is no longer a narrow telecommunications conversation. It is no longer just one sector within the economy; it is a productivity infrastructure for the entire economy,” he said.

Maida added that emerging technologies such as 5G, artificial intelligence, satellite broadband, cloud infrastructure, Internet of Things (IoT), and cybersecurity regulation have further transformed the sector.

He said the review process would also address structural issues including rural connectivity gaps, multiple taxation, vandalism, high energy costs, fibre cuts, and delays in obtaining permits.

“The commission aims to develop a modern policy framework capable of supporting innovation, protecting consumers, improving quality of experience, strengthening investment, and advancing Nigeria’s digital economy ambitions,” Maida said.

The EVC said the workshop was organised to assess implementation of the existing policy, identify gaps, engage stakeholders, and develop recommendations for a new national telecommunications policy 2026.

 

 


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MTN to Turn its African Tower Network Into a Distributed AI Compute Grid

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MTN Group plans to convert its African tower estate into a distributed AI compute fabric, installing open GPU infrastructure at base-station sites so that the same hardware can run both the cellular network and edge AI inference workloads.

MTN to Turn its African Tower Network Into a Distributed AI Compute Grid

The plan was set out by Charles Molapisi, group chief technology and information officer, MTN, at an event hosted by law firm Bowmans in Johannesburg recently— the company’s most detailed explanation yet of how it intends to position itself as the infrastructure layer of Africa’s AI economy.

Every cellular tower today has a baseband unit at its base — single-purpose hardware that exists only to drive the radio access network.

Molapisi said MTN will replace these with open GPU configurations capable of running the radio plus AI inference, in what the company has described as a “distributed AI grid.”

A key pay-off, he argued, is latency. AI workloads that today must be hauled back to a central data centre could instead be processed at or near the tower.

He gave the example of children playing PlayStation on an estate served by a nearby tower: with edge compute installed, the workload could be served locally rather than backhauled to a distant data centre and returned, freeing capacity and cutting round-trip time.

The edge layer sits alongside the centralized half of MTN’s AI infrastructure plan.

The group confirmed in its 2025 financial results in March that it will build two new AI-enabled data centres — one in South Africa and one in Nigeria.

Molapisi described an MTN AI strategy spanning a relatively full stack — procuring silicon, building data centres, running its own cloud platforms, curating models and co-developing applications with partners. The company is also building terrestrial fibre across multiple African markets, including some where it has no GSM licence, to plug what Molapisi called the continent’s missing “rails.”

The investments sit inside MTN’s Ambition 2030 strategy, which reorganized the group around three platforms: connectivity, fintech and digital infrastructure. The tower-to-inference push is the most concrete articulation yet of a thesis MTN has been laying out for more than a year — including an investment in March in U.S. AI-native networking start-up ORAN Development Company alongside NVIDIA, Cisco, Nokia, AT&T and Telecom Italia.

At the time, Mazen Mroué, CEO, Digital Infrastructure CEO, framed the move around “sovereign AI” — the principle that African countries should host AI compute locally rather than relying on offshore infrastructure.

Molapisi said MTN is developing the edge AI grid alongside technology partners, with the ambition for MTN to become “the biggest distributor of edge inference in the continent.”

The strategic case rests on Molapisi’s wider argument that Africa risks repeating its commodity history in the AI era.

With about 1% of global computing power on the continent today, he said, Africa stands to “export raw data” the way it has long exported raw minerals — only to import the intelligence built from it at a premium.

Molapisi conceded that chip generations are turning over quickly enough — NVIDIA’s Hopper to Blackwell inside two years, for example — that procurement decisions made today can be obsolete by deployment. He said MTN is being deliberate about its chip mix and the balance between training and inference silicon, “because if you get that wrong, you’ll get the economics terribly wrong.”


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Meta Cuts 8,000 Jobs in Major Shift Toward Artificial Intelligence

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Meta Platforms has laid off about 8,000 employees as part of a sweeping restructuring aimed at transforming the tech giant into an artificial intelligence-focused company.

Meta Cuts 8,000 Jobs in Major Shift Toward Artificial Intelligence

Mark Zuckerberg

The layoffs, which account for nearly 10 per cent of Meta’s global workforce, affected employees across Asia, Europe, and the United States, with staff reportedly receiving termination notices via email.

The company also reassigned about 7,000 workers to new AI-related projects as part of its broader organisational overhaul under Chief Executive Officer Mark Zuckerberg.

Zuckerberg has consistently described artificial intelligence as the most important technology shaping Meta’s future and has pushed aggressively to position the company at the forefront of the global AI race.

According to reports, the restructuring has generated anxiety among employees, with concerns growing over job security and the increasing deployment of AI systems within Meta’s operations and training processes.

Some workers were also said to have questioned internal data collection practices linked to AI development, while petitions reportedly circulated within company offices calling for greater transparency regarding employee data usage.

Despite the layoffs, Meta is significantly increasing investment in artificial intelligence infrastructure, research, and product development.

The company plans to spend more than 100 billion dollars this year on AI-related initiatives as competition intensifies among global technology firms.

Zuckerberg defended the restructuring, saying companies that lead in artificial intelligence would shape the next generation of digital services and technology innovation.

He acknowledged concerns among employees but maintained that the transition was necessary to ensure Meta’s long-term competitiveness.

Affected workers are expected to receive severance packages including several months of salary and additional compensation based on their years of service.

Industry analysts say the development reflects a broader trend in the technology sector, where companies are reducing traditional roles while expanding investments in artificial intelligence, automation, and advanced computing systems.


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