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Nigeria, Ghana Smartphone Markets in Good Shape in 2019 as COVID-19 Casts a Dark Shadow

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Nigeria’s smartphone market grew 5.3% quarter on quarter (QoQ) in Q4 2019, according to the latest figures from global technology and consulting services firm International Data Corporation (IDC). This growth comes on the back of a 3.2% QoQ increase in Q3 2019 after the market suffered a slow H1 2019, which translated into a 3.5% year-on-year (YoY) decline for 2019 as a whole. Meanwhile, Ghana saw smartphone shipments increase 6.1% QoQ in Q4 2019 and 9.1% YoY for 2019. Combined, these two countries saw shipments of 12.6 million units in 2019.

The decline in Nigeria in H1 2019 was caused by the closure of airports February, which led to a considerable slowdown in imports. The extended campaigns for the 2020 general elections also impacted the market, while the dollar was also unstable during this same period, which had the effect of reducing smartphone shipments to the country.

Together, Transsion brands (i.e., Tecno, itel, and Infinix) held the biggest market share in 2019 as they launched a number of successful models with big screen sizes and mid-range prices, including the Spark 4, Phantom 8, and Camon 12, among others. In addition, Transsion experienced strong demand for its wide range of models in low price bands ($0<$100).

Huawei had a major comeback to the market, benefiting from an increased marketing budget and the launch of new products in the mid-range price bands. Samsung benefited from its A series models, which had a wide market audience due to the affordability and rich features of these devices.

The Nigerian government raised VAT from 5% to 7.5% effective from February 1st, 2020. This new regulation is likely to lead to an increase in smartphone prices, leading to slower smartphone adoption in the market. With VAT averaging 5% in the markets directly neighboring Nigeria, gray market re-exports of smartphones into the country are likely to increase.

Anticipated Impact of COVID-19 Outbreak

As per the most recent Situation Report (#56) from the World Health Organization, there are now 167,511 confirmed cases of the COVID-19 virus worldwide, with 6,606 deaths. In response to the pandemic, IDC has developed three possible scenarios – Optimistic, Probabilistic, and Pessimistic – and currently believes that the Probabilistic scenario is the most likely to occur, with both supply- and demand-side concerns alleviating by the second half of 2020. Under this Probabilistic scenario for Nigeria and Ghana combined, IDC expects smartphone shipments to decline 15.4% in QoQ in Q1 2020 and 3.9% in Q2 2020.

As most consumer devices in West Africa are imported from China, the disruption to supply chains caused by the COVID-19 outbreak will have a particularly severe impact on this sub-region. Most of the major smartphone brands (i.e., Tecno, Itel, Infinix, Xiaomi, Huawei, Oppo, and Vivo) are of Chinese origin and they control over 85% of the regional market. Other brands such as Nokia and Samsung, with their partial production outside China, cannot fill the gap as they also source parts and components from China.

The impact of the COVID-19 outbreak on Nigeria is double sided. While the supply of smartphones will inevitably be restricted on the Chinese side, Nigeria’s oil revenues are also likely to suffer as China is Nigeria’s the largest customer for crude oil and other raw materials.

“While the spread of COVID-19 presents a significant threat to Nigeria, a country with insufficient health infrastructure, the negative impact on oil revenues poses a larger threat in the short to medium term, and this will negatively impact the country’s fragile economic development and the purchasing power of consumers,” says Dr. Ramazan Yavuz, a senior research manager at IDC.

“While the impact of the spread of the virus is expected to lessen and a return to normalcy is awaited in H2 2020, the volatility and uncertainty in oil markets will continue to take a bigger toll on the Nigerian economy, which will subsequently stifle demand for consumer devices, including smartphones.”

IDC expects that the shortage of smartphone supply will drive an increase in gray market imports from other markets. “If the supply chain is not back to normal and distributors run out of stocks, the average selling prices for smartphones are likely to go up because of the shortage in supply,” says George Mbuthia, a research analyst at IDC. “The increase of VAT to 7.5% in Nigeria will push costs further upwards, slowing smartphone penetration in the short term.”


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Electricity Theft in Nigeria: Impact, Strategies and the Way Forward

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By Okoko Chidozie Christian

[email protected]; 09025179984.

Epileptic power supply has been a mainstay of Nigerian society and profoundly impacted communities, undermines the access of individuals to electricity and hampered economic growth.

Electricity Theft in Nigeria: Impact, Strategies and the Way Forward

And, a range of factors have been identified by stakeholders as the root causes including energy theft.

Electricity – essential part of our daily lives is used for powering our homes, offices, businesses and industries. Unfortunately, some people choose to illegally tap into it.

Illegal electricity connections, also known as “power theft” refers to the unauthorized tapping of electric from a power grid, often without the knowledge or approval of electricity providers.

According to source, electric theft is the criminal practice of stealing electric power, and it is nearly as old as electricity distribution.

Accomplished through a variety of means, from methods as rudimentary as direct hooking to a power line, to manipulation of computerized electrical meters endangering the environment.

For instance, if the power consumption in a region increases to a level where the average demand exceeds the rating of transformer or other electrical equipment due to power theft, then power quality problem like voltage collapse or transformer overloading may occur.

Frequent power cuts lead to deterioration in the customer-utility relationship. Illegal connections to the electricity network often transverse roads, fields, footpaths and present a safety risk for communities who must go about their normal daily activities into contacts with live cables and wires that have not been properly installed.

However, bypassing an electric meter co-located with fuses, circuit breakers, residual current earth leakage detection will often lead to risk of electrical faults and excessive use within the house may not be detected.

And, the supply will remain live within the house, increasing the risk of electrocution or fire. Cost of electricity is substantially compared with low income flow and credit constraints in most countries. For examples, more than 70% of Nigerians live on less than US2.0dollars per day. Yet, there is need to pay for the cost of power consumed.

So, it would appear illogical to conclude that residential consumers steal electricity thereby contributing to this loss.

According to the new Electricity Act, offenders to electric theft shall be subject to imprisonment for a term exceeding three years, a fine or both. If the load consumed or used or attempted consumption or use, does not exceed 10 kilowatts, the first conviction shall warrant a fine no less than three times the financial gain resulting from the electricity theft.

In Nigeria today, the Power Distribution Companies, DisCos face several challenges of electricity theft which remain one of the major causes of massive revenue losses thereby increases the debt profile in Nigeria Electricity Supply Industry, hence negatively impacting the nation’s economy.

Recently, Adetayo Adegbemle, executive director of Power Up Nigeria,  expressed that the Senators are out of touch with the realities of the power sector and should seek advice from professionals and experts for accurate information. According to him, electricity is also not a public utility anymore, it is now a commodity.

Energy theft is an international problem and globally estimated in 2022 that consumers spent up to 1.4 billion pounds annually. This costs have to be passed to customers in the form of higher energy charges. The annual worldwide financial losses due to power or electricity theft are estimated to be around US 100billion dollars.

In a recent report by the Director of the Power Sector Advocacy Group in Nigeria; one (1) transmission company TCN, twenty-three(23) generation companies, GenCos and eleven (11) electricity distribution Companies, DisCos operates in Nigeria. Moreover, the plants are managed by generating companies (GenCos), independent power providers, and the Niger-Delta Holding Company.

Unfortunately, the twenty-three (23) power-generating plants connected to the national grid with the capacity to generate 11,165.4MWs of electricity has not been feasible. Despite having a capacity of 22,000 MWs, the country’s power generating peaked at 4,594.6 MWs as of November 2022 has been insufficient for the populace. So, the electricity generated is considerably low for over 200million people.

Although, some anti-theft products can help shield the network and consequently reduce power theft. Just like in United Kingdom, their electrification is made under subsurface about 100meters; not so easy for human to access, study confirms.

So, being a complex challenge, there are some ways to combat the illegalities of energy theft in Nigeria, but the consumers-utility relationship is a key determinant. Improvement of this relationship through local participation in development of renewable energy schemes such as rooftop solar photovoltaic, use of biomass and many more could bring benefit. Also, financing, redesigning of the distribution system and utility company codes and standards, competence in post-installation maintenance.

Strengthening of legal and regulatory framework particularly with larger users, and installing high security tampered-resistant metering systems for commercial consumers may have more effect.

 

 

 


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Clean Technology Hub, FCT Launch Climate and Change Youth Movement in Abuja Secondary Schools

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Clean Technology Hub, renewable energy and climate change advocacy firm has launched a Climate Change and Youth Movement in FCT secondary schools in collaboration with the Department of Science, Technology, and Innovation of the FCT Education Secretariat.

Clean Technology Hub, FCT Launch Climate and Change Youth Movement in Abuja Secondary Schools

Ms Ifeoma Malo, founder and CEO of Clean Technology Hub,

 

The collaborators commenced the Climate and Change Youth Movement recently at the Government Science and Technical College, Bwari, FCT.

The Climate Change and Youth Movement is a platform for students to learn about the environment and contribute to solving challenges linked to climate change starting from their local communities. It aligns with a worldwide effort to raise awareness and educate children and youth about climate change and renewable energy.

Experts say children and youth are potential driving forces in achieving the climate change objectives in the Sustainable Development Goals.

Clean Technology Hubs’ Climate Change and Youth Movement, for public secondary school students and teachers, seeks to support schools in building climate education programs.

CTH says it will implement it by Establishing new environmental clubs (Green Clubs) or partnering with existing ones targeting science and art students and equipping them with a club manual to guide their meetings.

The schools will also participate in the first-ever Nigerian Students Climate Summit billed to commemorate World Environment Day on 6 June 2024.

The program aims to increase awareness, sustainability, and resilience regarding climate change and clean energy, build capacity on the various technical skills required in the clean energy market value chain, and increase understanding of opportunities in the renewable energy sector.

Ms Ifeoma Malo, founder and CEO of Clean Technology Hub, remarked, “The agreement signed with DSTI enables us to launch a pilot program in the Government Science and Technical College, Bwari, which, upon its successful completion, will be replicated in other colleges in Abuja.”

 

 

 


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Dana Air Sacks over 1,000 Workers Weeks after License Suspension

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Dana Air has laid off about 1000 employees, including 583 permanent members of staff and expatriates, following the suspension of its operations by the Nigerian Civil Aviation Authority (NCAA).

Dana Air Sacks over 1,000 Workers Weeks after License Suspension

Though the airline claims this disengagement is temporary,  but emails seen Nigeria CommunicationsWeek,  suggested that it a permanent termination.

A paraphrased email sent to all the disengaged members of staff from the airline’s management read: “We regret to inform you that your service is no longer required effective May 9, 2024. This difficult decision was necessitated by the unfortunate suspension of our AOC/business operations by the Nigerian Civil Aviation Authority (NCAA) and enormous challenges the suspension continues to occasion. We take this oppourtunity to thank you for your contribution to the organisation during your time here with us and wish you the best in your future endeavours.”

Kingsley Ezen, head, Corporate Communications for the airline, in a statement, however blamed the development on the ongoing audit by the Nigerian regulatory authorities.

“In light of the ongoing audit, Dana Air has decided to temporarily disengage some staff members pending the conclusion of the audit,” Ezen said.

“The Management of Dana Air extends its sincere appreciation to all staff members for their resilience and dedication during this period of uncertainty. It recognises the difficulties that staff have had to endure and assures them that every effort is being made to resolve the situation promptly,” it added.

Recall that on April 24, the Nigerian Civil Aviation Authority suspended the Air Operators Certificate of Dana Air 24 hours after the airline’s plane from Abuja landed at the Lagos airport runway and veered off into a nearby field.

Reacting to the development, Festus Keyamo, minister of Aviation and Aerospace Development, said the airline has been operating in an unhealthy status.


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