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Help! Big Telcos Killing Small Ones

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Some large telecommunications companies in Nigeria are actually abusing the market power they have amassed in recent years and are emasculating smaller operators, though the Nigeria Communications Commission (NCC) thinks otherwise, Nigeria CommunicationsWeek can now reveal.
The operators hide under the absence of anti-trust law and lack of machinery to regulate monopolistic and anticompetitive practices by powerful companies.
The telecom industry is currently subsisting under the anti-trust provision enshrined in the NCC’s Act.
That provision has been found to be defective because it does not protect other sectors of the economy. Experts said that the way forward is the institution of anti-trust law.
Anti-trust law seeks to make businesses compete fairly. Premised on the belief that free trade benefits the economy, businesses, and consumers alike, the law forbids several types of restraint of trade and monopolization.
Nigeria CommunicationsWeek gathered that it falls into four main areas: agreements between competitors, contractual arrangements between sellers and buyers, the pursuit or maintenance of monopoly power, and mergers.
Adewale Jones, managing partner, Ashfield and Bowman, said the absence of anti-trust law has negative and far reaching effects on the economy.
According to him, anti-trust law can only help bolster the economy, adding that free and open competition benefits consumers by ensuring lower prices, and new and better products.
Nodding in agreement, Bayo Banjo, managing director, Disc Communications, warned against the emergence of private monopolies.
Banjo who spoke at the annual general meeting of Association of Telecommunications Companies of Nigeria (Atcon) in Lagos at the weekend, said that already smaller operators are being pushed out of the market by large operators with huge financial war chest.
Nigeria CommunicationsWeek gathered that there are occasions where entrenched operators deliberately limit the size of interconnection between it and other operators in order to attract even more customers to their own networks.
There are also cases where large operators have arm-twisted smaller players and taken their ideas and business proposals.
Jones and Banjo also agreed that there is need for smaller businesses to exist and that the only way to guarantee that is the early establishment of anti-trust law.
Nigeria CommunicationsWeek gathered that anti-trust laws protect competition. In a freely competitive market, each competing business (large or small) generally will try to attract consumers by cutting its prices and increasing the quality of its product or services. Competition and the profit opportunities it brings also stimulate businesses to find new, innovative and more efficient methods of production.
Consumers benefit from competition through lower prices, better products and services. Inefficient firms or companies that fail to understand or react to consumer needs may soon find themselves losing out in the competitive battle.
But the NCC recently said that major telecom operators either alone or collectively does not pose any major threat to the telecoms market.
Deriving from its regulatory inquest, the apex regulator said that it “has not found any conclusive evidence that any of the mobile licensees are engaging in conduct which has the purpose or effect of substantially lessening competition.”

 

 


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Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria

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Legit.ng recently joined forces with the Shade of Life Foundation to become a voice of autism, and drive advocacy for improved media support during Autism Awareness Month.

Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria

Participants at the event

Conversations around media support exploration was led by Joseph Omotayo, head of Department for Human Interest Stories at Legit.ng, and Dr. Eziafakaku Nwokolo, founder and CEO of the Shade of Life Foundation,

This partnership is a response to the concerns raised by organizations like the Shade of Life Foundation about the level of support received from the media in discussing autism as a disability.

While other disabilities may receive attention, autism, with its critical developmental implications often lacks adequate representation in mainstream media.

Recognizing the importance of addressing these concerns, Legit.ng took proactive steps by integrating itself into the essence of autism awareness.

It facilitated a one-hour workshop with Dr. Nwokolo, the founder of the foundation, to deepen our understanding of autism, its various spectrums, and the language boundaries associated with it.

Other steps we took in advocating autism awareness in the media, can be seen in our attached press release.

Legit.ng believes that by amplifying the voices of autism and advocating for better media representation, we can contribute to creating a more inclusive and accepting society for all.

 

 

 

 

 

 

 

 

 


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As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply

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While 85 per cent of Nigeria is in darkness, Tanzania, an African country has shut down five hydroelectric stations in a bid to reduce excess electricity in the national grid.

As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply

Kassim Majaliwa, prime minister, Tanzania, has said the main plant, Mwalimu Nyerere Hydroelectric Station, alone generated enough electricity to power major cities, including Dar es Salaam, the country’s commercial hub.

It is the first time Tanzania, which suffers chronic power shortages, has closed hydroelectric stations due to excess production.

“We have turned off all these stations because the demand is low and the electricity production is too much, we have no allocation now,” an official from state-run power company, Tanesco, said.

The 2,115MW Julius Nyerere Hydropower Dam is said to be almost filled with water following heavy rains that started early this year.

Meanwhile, while the country has an installed capacity of 1,938MW and the grid installed capacity of 1,899MW, Nigeria which has an installed capacity of 13,000MW is struggling to electrify 85 per cent of its electricity consumers.


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President Tinubu Appoints Jim Ovia as Student Loan Fund Chairman

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President Bola Tinubu has approved the appointment of Jim Ovia, renowned banker and businessman, as the Chairman, Board of the Nigerian Education Loan Fund.

Jim Ovia

Jim Ovia

Ovia’s appointment is contained in a State House statement titled, ‘President Tinubu appoints Jim Ovia as Chairman of the Nigerian Education Loan Fund,’ and issued on Friday by Ajuri Ngelale, special adviser to the President, Media & Publicity.

The statement noted that “Ovia is the founder of one of Nigeria’s leading banks and a respected business leader, with a surfeit of efforts and benefaction towards nurturing and empowering young Nigerians.

“He is an alumnus of Harvard Business School and holds a Master’s in Business Administration from the University of Louisiana.”

The National Student Loan Programme is a pivotal intervention that seeks to guarantee sustainable higher education and functional skill development for all Nigerian students and youths.

The Nigerian Education Loan Fund, the implementing institution of this innovation, demands excellence and Nigerians of the finest professional ilk to guide and manage.

“The President believes Mr. Ovia will bring his immense wealth of experience and professional stature to this role to advance the all-important vision of ensuring that no Nigerian student suffers a capricious end to their pursuit of higher education over a lack of funds,” the statement partly read.

Ovia’s appointment will also ensure “that Nigerian youths, irrespective of who they are, have access to higher education and skills that will make them productive members of society and core contributors to the knowledge-based global economy of this century.”


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