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Financial Bankruptcy Forced Nokia’s Acquisition by Microsoft-Analyst

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Francisco Jeronimo, research director, European Consumer Wireless and Mobile Communications, IDC EMEA, has said that Tuesday’s announcement on Nokia’s acquisition by Microsoft signals the end of an era for both companies.

However, financial challenges on the part of Nokia forced it to embrace the purchase by Microsoft.

Both Nokia and Microsoft, Jeronimo said, have now embraced different strategies to be able to better compete in a completely different landscape where mobility is the driver.

“While Microsoft realized that it wouldn’t be possible to succeed without controlling the entire value chain, Nokia has realized that it needed a stronger ally with the financial muscle to continue driving its Lumia smartphones.

 “The market has moved from a product to an ecosystem battlefield. In this new world, phone makers need to excel in the hardware and design, but more importantly they need to excel in the user experience, as well as services and content offering, which is extremely cash demanding.

“Moreover, as smartphone penetration continues to grow, manufacturers will only be able to increase their sales by attracting users from competitors, which requires huge investments.

Nokia realized it didn’t have the financial resources to become the third alternative to Apple and Samsung in the smartphone segment. Instead of waiting to see whether that would change and eventually risk running out of cash, it decided to sell itself to the only company really keen to invest in Windows Phone,” he said.

The IDC research director added that despite the partnership between Nokia and Microsoft on the operating system side, it was clear that both companies were moving at different speeds.

Since the agreement was closed in 2011, Nokia has been able to launch several Windows Phone devices quickly; addressing the lower price points the market needed and launching services across the range of devices to differentiate from other players.

He said: “On the other hand, the development of the operating system has been slow and far behind other operating systems. The Windows Phone OS hasn’t been able to attract the same number of developers and consequently it failed to attract users, who preferred other platforms due to the availability of more apps, more features, and more devices. Microsoft was relying on Nokia to make Windows Phone successful and Nokia was relying on Microsoft to grow the ecosystem. Now it is time for Microsoft to take onboard its own destiny.

“The tiny Windows Phone success has been driven by Nokia’s strong product development capabilities and the “blind” support from operators expecting to see much stronger support from Microsoft so they could have an alternative to Android and iOS. Therefore today’s  (Tuesday’s) agreement will be well received by mobile operators as Microsoft will align the software and hardware development, speeding up the Windows Phone operating system, but more importantly it will give operators access to Microsoft’s deep pockets, which it will use to promote Windows Phones.

“We will probably see more agreements like this one in the future. The time for pure-play vendors has ended and the remaining ones haven’t understood that yet. The market will become more concentrated as economies of scale are important to survive in a market where profits will come from several slices of a pie rather than one single business, particularly if that business is hardware.

Jeronimo Mobile phone vendors will realize that the only chance to succeed is by merging with content providers, with bigger manufacturers, or less likely with an operator or a large retail chain. Whatever form it takes, concentration is key to survive as margins will continue to be squeezed by the dominant players.

While Nokia has realized that and is taking action, others will continue to see their financial situation deteriorate and will take the same decision when bankruptcy is a reality.

“Although Microsoft is buying the entire Nokia Devices unit, it is still unknown what the company will do with this segment. Feature phones continue to represent a significant percentage of worldwide shipments, but that will drastically change in the next few years. In the long term there is a small market opportunity in the segment, but in the short term it is important that Microsoft keeps the segment alive and profitable,” he maintained.

The IDC research director added that this will give Microsoft access to markets where feature phones are still the dominant segment and where the Nokia’s brand is still strong.

These markets will see an explosion in smartphones in the next few years and users will likely replace their basic phones with a smartphone from a make they already know and trust.

Attracting this first wave of smartphone adopters is crucial for Microsoft’s growth in these regions.


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E-Business

CAC to Prosecute Business Owners Operating Without Registration

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Corporate Affairs Commission (CAC) has reaffirmed its commitment to enforcing business registration laws in Nigeria, warning that individuals and organizations operating unregistered businesses will face prosecution.

In a statement, the CAC emphasized that conducting business without proper registration violates the Companies and Allied Matters Act (CAMA) 2020, undermining transparency and accountability in the corporate sector.

The commission stressed that registration is not only a legal requirement but also a gateway to formal business opportunities, including access to bank loans, government grants, and partnerships.

The enforcement drive will be nationwide, targeting small and medium-sized enterprises (SMEs), online vendors, and informal traders who have failed to comply despite previous awareness campaigns and registration amnesty windows.

The CAC disclosed that enforcement teams, in collaboration with security agencies, will be deployed to identify and prosecute defaulters.

The commission urged business owners to take advantage of its simplified registration platform to regularize their status, noting that compliance will boost investor confidence and improve Nigeria’s ease of doing business. It warned that ignorance of the law will not be accepted as an excuse.

Business owners are advised to act promptly to avoid legal consequences, as the CAC moves to ensure a more structured and regulated business environment in Nigeria.


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NCC Vows to Tackle Online Infringement, Block Illegal Music Websites

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Nigerian Copyright Commission (NCC) has pledged to enforce its legal obligations to combat online intellectual property infringement and urged commercial music users to obtain proper licences from rights holders or their representatives.

NCC Vows to Tackle Online Infringement, Block Illegal Music Websites

The Commission stated that this ensures creators are fairly compensated, supporting the music industry’s sustainable growth.

In a statement commemorating the 2025 World Intellectual Property Day, themed “IP and Music: Feel the Best of IP,” the NCC announced plans to enforce the Copyright Act 2022, which allows for the takedown of infringing materials and blocking of websites hosting illegal content.

Signed by Mrs Ijeoma Egbunike, director of Public Affairs, the statement outlined an aggressive anti-piracy campaign in collaboration with the private sector, targeting the online environment.

Egbunike affirmed the NCC’s commitment to establishing enforceable standards for transparency, digital audits, and real-time royalty reporting to protect creators’ rights. She stated, “The NCC will continue to champion policies that support the growth of the music industry, improve the livelihoods of Nigerian musicians, and foster a culture of creativity and respect for intellectual property.”

Despite the global success of Afrobeats and other Nigerian genres, the NCC noted that many musicians face low royalty returns due to rampant digital piracy.

To address this, the Commission revised its Collective Management Regulations to enhance transparency and accountability among Collective Management Organisations (CMOs).

The NCC emphasised that proper licensing is a legal obligation and vital for Nigeria’s creative economy, stating, “Music must feel the beat of intellectual property for the full potential of creativity to be realised.”

The Commission highlighted that creators’ livelihoods depend on fair royalty compensation.

Recent enforcement measures include the NCC’s designation by the Attorney-General of the Federation as an authority under the Proceeds of Crime (Recovery and Management) Act 2022.

This, combined with the Copyright Act 2022, empowers the NCC to order takedowns and block illegal music distribution websites.


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FG Warns Nigerians Against Growing Threat of Cyber Slavery in West Africa

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The Federal Government, has warned Nigerians against the growing threat of cyber slavery within the West African sub-region.

The Ministry of Foreign Affairs, in a statement issued in Abuja by Kimiebi Imomotimi Ebienfa, acting spokesperson, noted with grave concern the alarming rise of cyber slavery across parts of West Africa, targeting Nigerian citizens, particularly vulnerable youths.

The government said many young Nigerians, including underage teenagers, were lured out of the country under the false promise of lucrative employment opportunities abroad, particularly in crypto-related operations.

According to the government, “In reality, these individuals are trafficked into sophisticated scam operations and enslaved to work in criminal “call centres” — often referred to as “419 cyber-scam factories.” There, they are forced under coercive and inhumane conditions to send thousands of fraudulent emails, text messages, and calls aimed at defrauding victims worldwide.”

The government also noted with dismay, a recent incident where the Economic and Organised Crimes Office (EOCO) in Accra, Ghana, rescued and detained a group of Nigerians forced to engage in cybercrime activities under inhumane conditions.

“This incident highlights the severe exploitation and abuse associated with cybercrime operations. It also underscores the need for enhanced efforts to combat such multibillion-dollar criminal networks and mitigate the susceptibility of victims.

“The Ministry strongly warns all Nigerians, especially the youths and parents, to exercise the utmost caution when presented with job offers, particularly those promising easy money, overseas travel, or remote work involving cryptocurrencies.

“Nigerians are therefore advised to verify all employment offers through official channels and report suspicious cases to relevant authorities for necessary investigation and action to curtail the activities of the perpetrators.

“The Ministry wishes to assure the general public that, as a precautionary measure to address this unfortunate situation, the Federal Government is working closely with regional partners, law enforcement agencies, and international organizations to tackle this heinous crime, rescue victims, and bring perpetrators to justice.

“The Ministry remains committed to protecting Nigerian citizens at home and abroad and will continue to raise awareness about emerging threats to the welfare and dignity of our people,” the statement read.


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