Telecom
COVID-19: E-commerce companies cry out under weight of restrictions by Govt security operatives
At a time when global players in the e-commerce sector have seen the peculiarities of their operations come to the fore in helping governments and people in other climes observe social distancing and stay in supply of essential items without leaving their homes, the Nigerian e-Commerce sector is instead buckling under the weight of heavy restrictions by state actors and law enforcement officials; leading to no end of frustrations for players in the sector.
E-commerce giants in other climes such as Amazon and Alibaba, for instance, have played important roles in the fight against COVID-19 in other parts of the world, working in concert with the government in helping people ensure social distancing through wholesome adoption of online and contact-less shopping.
However, investigations reveal a sorry tale of huge pains and frustrations among e-Commerce players in Nigeria, in stark contrast to what obtains elsewhere.
The likes of Konga and Jumia, two of the biggest operators in the Nigerian market have endured difficulties at the hands of government enforcement agents, despite being the best means of contact-less shopping that can help in curbing the spread of the virus.
Research shows that in a number of countries and even in Africa, e-Commerce players have been supported and encouraged by the government in the fight against COVID-19.
But here in Nigeria, the situation is different.
The Nigerian government and some state governors have not only failed in openly backing the operations of e-Commerce players as an essential ally in the COVID-19 crisis, but a situation where security operatives are frustrating the operations of e-commerce companies due to the ongoing lockdown and border closures has further worsened matters.
A source at Konga, who spoke on condition of anonymity provided some insights into the dire situation.
‘‘E-Commerce is a cost-intensive venture all over the world, one which relies on a number of very expensive applications which must be constantly paid for.
“Konga, for instance, is burning a lot of cash to keep the business going and employing thousands of Nigerians directly and indirectly.
“Yet, we are taking huge losses in meeting the commitments to our customers, many of whom rely on us for essential deliveries.
“Our merchants, who we also rely on in meeting the numerous online orders, cannot open their shops due to the lockdown.
“These merchants are individuals who have all being trained on essential safety procedures such as wearing masks, gloves and social distancing and, as such, pose little infection risk.
“In addition, we have to endure undue delays in the course of reaching the customers. For instance, a truck making essential intra-state deliveries is often delayed for a minimum of six days, thereby causing huge pains for the company and consumers,’’ he lamented.
‘‘Even when granted exemption letters, the situation on the streets is far from ideal. We have encountered severe delays and huge frustration as a result of the overzealous actions of some security operatives who sometimes refuse to grant access to delivery personnel or in other cases, even turn them back. The government needs to do something about this.’’
Also, feedback from sources at Jumia, who pleaded not to be named, paints a picture of frustrations.
‘‘In virtually every other country, e-Commerce is being deployed as a critical weapon in the fight against COVID-19. Consumers are encouraged to go online and leverage e-Commerce for contact-less shopping by staying at home and receiving their essential deliveries including groceries at their doorsteps.
“Shoppers can also pay via e-channels which obliterates the use of cash or POS. But in Nigeria, we have hardly seen any form of institutional support in this regard.
‘‘In fact, we have seen a situation where delivery is constantly being hampered by the harassment of our riders, vendors and delivery men on a daily basis.
“This happens to both intra-state and inter-state deliveries. As a result, deliveries that should take 24 hours due to the absence of traffic on the roads now stretch for days or don’t even happen at all in some cases.
“Also, our staff, who actually are essential service providers, equally face serious difficulties and in some cases, harassments by security operatives on their way to and from work.
Continuing, the source stated: ‘‘Government has a critical role to play in nipping this worrisome situation in the bud as the operations of most e-commerce companies are suffering.
‘Worse still, when consumers encounter undue delays for an item ordered online, they would naturally turn to offline markets, thereby worsening the risk of community transmission of the virus.’’
Indeed, with the emergence of the COVID-19 pandemic which broke out in Wuhan, China but which has since spread across the globe, virtually every country has had their national life and normal economic activities disrupted.
Subsequently, a number of measures have come into force in helping curb not only the spread of the dreaded virus, but also halt community transmission, which has been identified as one of the most worrisome aspects of the war against COVID-19.
Specifically, there is an emphasis on behavioural changes, with social distancing and improved personal hygiene emerging as essential guides.
Furthermore, restrictions have been placed on areas of high human concentration such as airports, schools, religious gatherings and most importantly, markets.
Consequently, e-Commerce has emerged as a ready-made channel for helping people carry out contact-less shopping, observing social distancing and the important call to stay at home, while also coping seamlessly with the shut-down of offline markets.
As a matter of fact, evidence abounds of how e-commerce has been leveraged to great effect in other climes and even in other African countries in the face of the COVID-19 pandemic.
In Germany and New Zealand, two of the countries that have made the most progress with respect to curbing the COVID-19 pandemic, e-Commerce has been one of the secrets.
Even in other African countries such as Morocco, Ghana, Uganda – where citizens were advised in a government communique to opt for online shopping options as a means of getting essential items delivered to homes – and in Ghana – where e-Commerce was given special status and Ghanaians urged to rely more on digital channels for the delivery of food and other essentials; the situation is different.
In fact, same special deployment of e-Commerce in aiding the citizenry observe the essential regulations of social distancing and reducing unnecessary contact in crowded markets has been identified in China, Spain, France, the United Arab Emirates, among others.
However, in Nigeria, the situation is almost the opposite.
A number of Nigerians, left with little choice due to afore-mentioned challenges encountered by e-Commerce players, are increasingly relying on open-air markets – which manage to escape the subsisting ban – to shop for their essentials.
Perhaps unsurprisingly, the country is currently battling to stop ongoing community transmission of COVID-19 as confirmed cases continue to rise by the day. Going by recent figures released on Saturday by the country’s disease-fighting agency, the Nigeria Centre for Disease Control (NCDC), Nigeria has recorded 1182 cases of COVID-19; with Lagos in particular, accounting for nearly 60 per cent of the cases.
Yet, e-Commerce companies, which have the capability to reach the last mile with essential deliveries, are not given free rein to operate.
Further buttressing the points raised above, the source at Konga called on the government to take action.
‘‘We expect the government and the authorities to act. E-Commerce companies in Nigeria can play a key role in the fight against COVID-19, as can be seen from the examples in other countries.
“The Nigerian government should provide more institutional support and some form of public backing for this budding sector as this would go a long way in not only encouraging more Nigerians to embrace the needed behavioural change central to the COVID-19 fight but would also ensure less hassles from other state actors on the highways,’’ he concluded.
Nigeria is currently battling hard to rein in the rampaging COVID-19 pandemic.
While there has been no formal restriction of e-commerce players, the government has equally stopped short of any form of official public pronouncement or declaration to ensure that the services of e-Commerce companies are protected and not disrupted by security agencies enforcing the lock-down.
In addition, the government has failed in toeing the path of other countries in leveraging e-commerce to great advantage in helping Nigerians stay in supply of essential products while complying with the lockdown.
Telecom
Nigerians Consume N5 Trillion Worth of Data in One Year
The 2023 Subscriber/Network Performance Report of the Nigerian Communications Commission (NCC) has shown that consumers’ telecommunication spending hit N5.30 trillion in 2023.
The recent figure is a 37.54 percent increase from the N3.86 trillion recorded in 2022.
According to NCC, the increase in spending was fuelled by a spike in data consumption, which translated to higher revenues for telecom operators including mobile network operators, fixed wired, internet service providers, and other telecom services.
“The total volume of data consumed by subscribers increased to 713,200.62TB as of December 2023 from 518,381.78TB as of December 2022. This represents an increase of 37.58 percent in data consumption within the period. The increased data consumption is indicative of the increasing appetite and use for data by consumers,” the NCC said.
This increase in data consumption coincides with only a margin increase in voice calls, with total outgoing calls hitting 205.29 billion minutes, a 0.59 percent increase from the 204.09 billion minutes recorded in 2022.
The total number of active subscriptions increased from 222.57 million in 2022 to 224.71 million, attributed to subscriber loyalty, promos, aggressive consumer acquisition drive, and competitive product offerings across all the networks.
NCC stated that internet subscribers increased from 154.85 million in 2022 to 163.84 million in 2023, and broadband penetration declined from 47.36 percent to 43.71 percent.
This growth in internet consumption has continued into 2024, thanks to increased streaming services and smartphone penetration.
It would be recalled that Karl Toriola, chief executive officer of MTN Nigeria, recently noted that telecom companies are set to benefit from increased demand for data services, which has become the primary driver of telecom revenue.
Between January and September 2024, MTN Nigeria and Airtel Nigeria reported combined data revenues of N1.63 trillion, up from N254.32 billion in the same period of 2019. Over this time, voice revenues—once the primary income source for telcos—grew by only 70.74 percent to N1.44 trillion.
Data usage per user has grown, with MTNN reporting that its average data usage per user rose to 11.3GB in September 2024 from 7.8GB in March 2023.
For Airtel Nigeria, monthly usage increased from 2.8GB in March 2021 to 8.1GB in September 2024.
“We are positioning ourselves to capture the opportunities of growth for the next 10 years. The demand for data in Nigeria is exceptional and will continue to grow,” Toriola stated.
Telecom
Glo Festival of Joy Promo Draws Lucky Winners in Abuja
Globacom’s Festival of Joy promo took the centre stage in Abuja on Friday as the company held a draw to select lucky winners of exciting prizes.
The event, held at the Gloworld office on Aminu Kano Crescent, Wuse, was witnessed by officials of the National Lottery Regulatory Commission (NLRC), Glo subscribers, and media representatives.
This draw marks another milestone in the Festival of Joy promo, which has been rewarding subscribers across Nigeria since its launch in October 2024.
Lucky winners in Abuja will receive their prizes, including a brand-new Toyota Prado, tricycles, sewing machines, generators, and grinding machines, on Wednesday, January 22, 2025.
To participate in the promo, new and existing subscribers can dial *611# and recharge their lines (voice and data) during the promo period.
Globacom explained that, “Customers are required to recharge up to N100, 000 cumulatively during the promo period to qualify for the draw for the Prado Jeep, N50, 000 cumulative recharge for Kia Picanto, N10, 000 in a month for tricycle and N5, 000 total recharge in a month to win a generator.
“For the sewing machine, a total recharge of N2, 500 in a month is required, while for the grinding machine, a recharge of N1000 in a week will be eligible for the draw,”.
Telecom
MTN Subscribers Enjoyed Best Internet Performances in 2024 – Report
The subscribers of MTN Nigeria enjoyed the best mobile Internet performances in 2024, according to nPerf’s 2024 report, which analysed mobile internet performance across Nigeria.
nPerf, a French company has been a trusted partner for both fixed and mobile operators, providing comprehensive network testing solutions and analysis.
According to nPerf, in 2024, the mobile market in Nigeria saw significant developments and the leader for this period is MTN, maintaining its position as the global winner.
From January 1 to December 31, 2024, MTN led mobile internet in Nigeria across every measurable category, with great performance. Its subscribers enjoyed an average download speed of 17.82 Mbps, leaving Airtel at 9.98 Mbps and Glo at a distant 5.66 Mbps.
“This period highlights MTN’s continued dominance as the market leader, with no new entrants taking the lead in 2024. MTN emerged as the sole leader, showing impressive advancements across various KPIs and focus areas. The analysis showcases MTN’s superiority in Download speed, Upload speed, and Latency.
Upload speeds were similar, with MTN averaging 8.05 Mbps, Airtel 4.35 Mbps, and Glo 3.43 Mbps, even as reliance on solid internet connectivity never stopped increasing.
Latency, an important metric for real-time applications such as video calls and gaming, further enhanced MTN’s place in the market. The network achieved an average latency of 79.44 ms, comfortably outperforming Glo’s 89.44 ms and Airtel’s 119.85 ms.
These figures are particularly important during peak periods (6 PM to 11 PM) when the network issues are at the highest. MTN’s ability to maintain consistent latency levels during these busy hours speaks to its superior infrastructure.
Beyond raw speeds, the quality of experience (QoE) was also analysed. In browsing performance, MTN scored an average success rate of 36.08%, surpassing Airtel at 28.86%, while Glo lagged at 29.42%.
This difference was also seen in video streaming, where MTN recorded an average streaming success rate of 72.35%, overshadowing Airtel’s 67.04% and Glo’s 53.81%.
Airtel, despite being a distant second in most metrics, delivered a commendable performance in specific areas, particularly video streaming.
Its streaming rate, at 67.04%, shows a strong emphasis on delivering quality experiences in this domain.
However, Airtel’s inability to match MTN’s speeds, browsing performance and latency asserted the gap between the two providers.
Glo, on the other hand, had steady progress throughout 2024. Although it lagged in download (5.66 Mbps) and upload speeds (3.43 Mbps), its performance in latency (89.44 ms) revealed some improvement in network responsiveness.
Glo’s focus on enhancing connectivity is obvious, but it remains apparent that the provider has some ground to cover before it can challenge the likes of MTN or even Airtel.
The data disclosed that whether downloading, browsing, or streaming, MTN subscribers always enjoyed the best experiences.
In the 4G focus area, MTN also stands out as the leader. These achievements underline the positive trends and strong market dynamics” according to nPerf.
The report also said that not only does MTN excel in download speed, upload speed, and latency, but it also leads in Video streaming.
nPerf’s report added that MTN dominates the 4G focus area, reinforcing its pioneering position in the mobile technology sector.
“Significant improvements include a remarkable enhancement in Upload speed. MTN’s consistent contributions have greatly strengthened the overall market landscape” it said
On Airtel, nPerf reported excellence in browsing and streaming, adding that Airtel, while not the market leader, demonstrates excellence in specific categories.
“With a strong performance in browsing and video streaming, Airtel secures its place as a key player. The operator’s contributions are vital to the market’s competitiveness, and its focus on enhancing user experience is evident” nPerf reported.
nPerf further reported that Glo showed steady progress with a commendable improvement in its overall score.
Although not a market leader, Glo has shown improvements in various areas, contributing positively to the market’s dynamics. The operator’s focus on enhancing connectivity and customer satisfaction is noteworthy, according to nPerf.
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