Connect with us

Telecom

ALTON Urges CBN to Prioritize Allocation of Forex to Telcos

Published

on

alton.jpg
Kindly share this post

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.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

Telecom

New Gmail Scam Mimics Security Alerts to Steal User Data

Published

on

Kindly share this post

Cybersecurity researchers at Malwarebytes Labs have exposed a sophisticated new Gmail scam where fraudsters send fake Google security alerts via phishing emails, texts, and pop-ups, tricking users into a deceptive four-step verification process that harvests login credentials, GPS locations, contacts, and other sensitive data for account takeovers.

New Gmail Scam Mimics Security Alerts to Steal User Data

Gmail

Disguised as routine checkups, these alerts mimic Google’s official pages to create urgency, prompting victims to install malicious “security tools” that grant hackers real-time access to Gmail and linked services—Corey Donovan, president of Alta Technologies, warns legitimate checks never come unsolicited or demand downloads, urging users to close suspicious prompts immediately and verify via official Google account pages instead.

The scam’s rise amplifies risks during travel, where public Wi-Fi hotspots—especially “evil twin” fakes like slight misspellings of “Airport_Free_WiFi”—enable interception of banking details, emails, and malware installs; Donovan advises disabling auto-connect, using VPNs for HTTPS sites only, avoiding logins altogether, and crafting strong passwords with mixed characters plus two-factor authentication.

Shoulder surfing on public transport and outdated devices compound threats, as fraudsters glimpse screens or exploit unpatched vulnerabilities—keeping phones updated with post-update privacy reviews limits app access to location or commutes, while skipping work emails in view maintains confidentiality on the go.

Nigeria’s heavy reliance on digital banking and crypto heightens vulnerability, as scammers exploit rushed travellers; Donovan stresses: “Cybercriminals target busy airports and stations knowing guards drop—stay cautious, update devices, lock privacy, and never rush links to protect against these advanced breaches.”


Kindly share this post
Continue Reading

Telecom

Vitel Wireless Lures Subscribers with “Data that Never Expires” Campaign

Published

on

Kindly share this post

Vitel Wireless, pioneer Mobile Virtual Network Operator (MVNO) licensed by the Nigerian Communications Commission (NCC), has launched an audacious “data that never expires” campaign designed to address consumer pain points in the market.

Vitel Wireless Lures Subscribers with “Data that Never Expires” Campaign

Kenneth Nwabueze, Chairman and CEO of Vitel Wireless

Fast-depleting data is a major issue for mobile users, particularly in Nigeria, with numerous complaints against network providers alleging that data plans exhaust prematurely.

But Vitel Wireless said it is now addressing the situation after extensive engagement with Nigerian consumers, particularly young people and small businesses.

Kenneth Neabueze, chairman of Vitel Wireless, said “What we’re saying to Nigerians is this, you buy the data, and you keep the data for as long as you want. There’s no more. You bought 2GB for two days, and it expires. If you buy that data under our scheme, it stays with you forever,” he said.

He added that the model promotes transparency and cost efficiency. “So it’s saving us money, it’s giving us transparency, and it’s giving us the ability to have control over how we spend and use our data,” he stated.

He noted that the concept was inspired by research into the everyday challenges Nigerians face.

“We talked to students who would tell us that in the middle of doing a project, they would be told that the data had expired, and we asked, ‘ How do we innovate?” We have analysed it, and we know, given the current economic conditions in Nigeria, you should buy the data with discounts of almost 40 per cent, and that’s why we are transparent”

The company has also unveiled a suite of products and services aimed at redefining connectivity, including its flagship Vitel Xphone.

The company explained that its services are available via both physical SIMs and eSIMs, with the 0712 number offering global use.

According to the firm, users can retain existing mobile numbers or migrate seamlessly, while enjoying nationwide coverage across all 36 states and the Federal Capital Territory with full GSM services including voice, SMS, USSD, and mobile data.

Chudi Nwabueze, chief operating officer of Vitel Wireless, described the firm as a technology telecom focused on innovation beyond traditional voice and data services.

“We’re coming in with a lot of innovation to activate applications and create tools that people can use in their businesses, homes, and daily lives,” he said.

He added that eSIM technology allows users to operate multiple lines on compatible devices, while introducing a range of digital solutions aimed at enhancing communication, safety, and business operations, anchored by its flagship Xphone.

Hence, the platform combines GSM and VoIP technologies to deliver seamless voice, video, and messaging services, along with cost-saving benefits and nationwide connectivity.

It is complemented by the Oga App, which enables real-time staff monitoring, automated payroll, and performance tracking to improve organisational efficiency.

Similarly, the network also rolled out SecureMe and Asset Tracker to address security and asset management needs.

While SecureMe provides GPS tracking and emergency alerts for personal and workplace safety, Asset Tracker helps businesses monitor and manage physical assets in real time.

Vitel Wireless noted that on pricing, challenged consumers to compare daily data costs across operators, while adding that the network offers discounts for higher volumes without imposing expiry limits.

Also speaking, Chinenye Adebayo,  relationship partnership manager, outlined opportunities for Nigerians to join the company’s distribution network by visiting the website and becoming a mobile agent or sun-agents in any state.

The company noted that its offerings, including Close User Group (CUG) services and high-speed wireless network, are designed to provide integrated digital solutions for individuals and enterprises, as it seeks to position itself as a disruptive force in Nigeria’s telecom sector.


Kindly share this post
Continue Reading

Telecom

Nigeria, Ghana Trigger Stunning 45 Percent Surge in MTN Dividends

Published

on

Kindly share this post

MTN Group delivered impressive financial and operational achievements for 2025, boosted by strong performances in MTN Nigeria and MTN Ghana, as well as solid earnings from MTN South Africa.

Nigeria, Ghana Trigger Stunning 45 Percent Surge in MTN Dividends

The three core markets of Africa’s largest mobile provider enhanced profitability, free cash flow, and shareholder dividends by 45%.

IT Web Africa reported that Ralph Mupita, group CEO and president, MTN, highlighted that the telecoms giant’s robust commercial momentum across key markets capped the final year of its Ambition 2025 strategy, while laying the foundation for a new long-term growth phase under Ambition 2030.

“The Group’s overall performance in 2025 was excellent. In the final year of our Ambition 2025 strategy, we were proud to have exceeded the 300 million customers milestone,” he said.

MTN revealed that it now serves more than 307 million voice subscribers, 172 million data users, and 70 million Mobile Money customers across 16 African markets, reflecting the continent’s growing demand for digital connectivity and financial services.

The operator credited its results to disciplined commercial execution and sustained investment in network infrastructure, with R38 billion spent during the year to expand capacity, improve coverage and enhance service quality.

The group reported that data traffic surged 27%, while average monthly data consumption per user climbed to 12.5GB, up from 10.8GB a year earlier, reflecting Africa’s fast-growing appetite for digital services.

Financially, the performance was driven by MTN’s largest markets.

In constant currency terms, MTN Nigeria grew service revenue by 54.9%, while MTN Ghana increased service revenue by 35.9%.

Meanwhile, MTN South Africa recorded 2% growth, demonstrating operational resilience in one of the continent’s most mature and competitive telecom markets.

MTN Group service revenue rose nearly a quarter to R218 billion, while earnings before interest, tax, depreciation and amortisation climbed to R98.5 billion, supported by R3.6 billion in expense efficiencies.

Mupita stressed that the strong results translated into robust free cash flow and improved return generation, allowing the board to declare a dividend of 500 cents per share, up from 345 cents the previous year.

“This comfortably exceeds the minimum dividend of 370 cents we had previously guided,” he said.

The group also announced a R6 billion share buyback programme as part of an enhanced shareholder remuneration framework aimed at delivering stronger long-term returns.

Alongside its results, MTN unveiled Ambition 2030, a strategy centred on three platforms, connectivity, fintech and digital infrastructure, as it seeks to capture the next wave of growth driven by data adoption and financial inclusion across Africa.

“We are hugely excited about Africa’s potential. We are well positioned to leverage our scale, footprint and brand leadership to capture the significant structural growth opportunities identified,” said Mupita.

 

Source: IT Web Africa


Kindly share this post
Continue Reading

Trending