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Experts Extol Glo Xchange as a Boost to Nigerian Economy

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Two of Nigeria’s foremost financial analysts have applauded Nigeria’s biggest Mobile Money Agent Network, Glo Xchange, recently launched by Globacom, the country’s national telecom carrier.

Glo Xchange was launched in partnership with four mobile money operators, FirstMonie, Stanbic IBTC, Ecobank and Zenith Bank.

Bismarck Rewane, renowned financial consultant and Chief Executive Officer of Financial Derivatives Company Limited, and Dr. Ayo Teriba, macroeconomics expert and CEO of Economic Associates, who spoke at the formal launch of Glo Xchange in Lagos, described the initiative as a direly needed ingredient for accelerating mobile money explosion in Nigeria.

Rewane said the initiative is consistent with the Central Bank of Nigeria’s policy thrust of developing and sustaining an efficient payment system that will drive an increase in the velocity of money and consequently, stimulate economic growth.

He described Nigeria as a mineral-rich and commodity-dependent economy with a nominal GDP of $510bn.

According to him, it is 12 times the size of Kenya’s economy which has profited massively from mobile money service.

He said Nigeria is the largest economy in Africa and the 26th largest in the world.

Rewane said, however, that the economy is largely cash-based, a situation which he said constitutes a barrier to rapid growth.

He said therefore that, initiatives such as Glo Xchange that help to enhance the cashless policy of the CBN, or that help to improve the velocity of money is bound to have a resounding positive impact on economic growth.

Expatiating further, Rewane said the potential GDP growth rate in Nigeria is 11 percent, whereas the actual GDP growth rate as discerned from the rebasing exercise recently carried out by the Federal Government is six percent.

He said since people don’t live on potential but actuals, it is of utmost importance to implement policies that will help Nigeria to actualize the potential growth rate.

One veritable way of achieving this, he said, is to capture the money lying outside the formal sector.

According to him, over 46 per cent of Nigerian adults currently have no access to financial services.

He said Mobile money is a strong tool for financial inclusion of this huge category of Nigerians, stressing that initiatives such as Glo Xchange, which will help with the acceleration of mobile money service is therefore highly commendable.

He added that Glo Xchange will contribute to the efficiency of Nigeria’s payment systems, lead to more efficient transactions and open a floodgate of opportunities for a lot of stakeholders from the top to the bottom of the mobile money value chain. 

Dr. Teriba on his part noted that while Mobile Money service has been in Nigeria for over three years, it has failed to grow as expected because of certain reasons, including lack of an efficient and expansive agent network.

“Usually for such a service as mobile money, the bigger the network, the higher the chances of an explosion, and by extension, the bigger the benefits accruable to all the stakeholders, from the banks down to the customers,” he said.

He added that Glo Xchange, with the nationwide network of agents as unveiled by Globacom, is just the ingredient the industry has been waiting for.

He noted that the potential for growth for the initiative is immense as the platform is open to other banks to plug into.

He implored Nigerians looking for employment opportunities to see the avenues created by the initiative and utilize them for self-enhancement.

Globacom said it aims to recruit over 500,000 Mobile Money Agents within the next 5 to 6 years who will earn excellent commission monthly on sales. The recruitment of the agents has already started.


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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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NCAIR Relaunch: Pantami, Tijani Fight for Credit

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Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


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ABoICT Lecture 2024 to Focus on Artificial Intelligence (AI) In A Digital Economy

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This year’s Africa’s Beacon of ICT Merit and Leadership lecture will focus on the role of artificial intelligence in a digital economy with the theme: “Artificial Intelligence (AI): The Good, The Complex and The Anticipated”.

The lecture which will herald Africa’s Beacon of ICT Merit and Leadership Awards hold on May 25, 2024 at Four Points by Sheraton.

The sixteenth edition of the award ceremony according Ken Nwogbo, editor-in-chief of Nigeria CommunicationsWeek the organizers of the event, “is a special edition to recognize and celebrate organizations and individuals in the ICT industry that have been distinguished in delivery innovative services in the sector.

“Most of these organizations and individuals have consistently being voted by our readers as leaders in their areas of operations and we have decided to reward them in this especial edition”.

He added that, AI is considered to have the potential to instigate a fourth industrial revolution,1 and is dramatically changing people’s patterns of interaction and economic activities.

“The traditional factors of production and physical capital and labour may no longer promote substantial economic growth. It is generally believed that AI will be one of the most important factors determining future economic growth.

“However, unlike traditional machines, which replaced the use of human and animal labor for simple manual work and heavy or dangerous activities, AI-related inputs may change the type of human work in a comprehensive way.

“In contrast to previous industrial revolutions, AI does not simply involve the invention of a new machine or technology. Instead, AI has similarities to the accumulation of human capital, as it can learn and accumulate knowledge by itself,” he said.

The Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture is designed to explore efforts to put Nigeria on the global Information and Communications Technologies map.

The lecture series however is reserved for distinguished achievers in the ICT sector.

Past lecturers included Dr. Ernest Ndukwe, then executive vice chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Uche Orji, managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodu Omoniyi, Managing Director/CEO, VDT Communications; Ayotunde Coker, Managing Director, Rack Centre Limited; Peter Adedayo Arogundade, managing director and chief executive officer, Sidmach Technologies Nigeria Limited; Dr. Adewale Obadare, chief visionary officer, Digital Encode and John Obaro, CEO and founder of Systemspecs; Prof. Isa Pantanmi, minister of Communications and Digital Economy; among others.


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