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Local Operators Need Protection-Banjo
Engr. Bayo Banjo, managing director and chief executive officer of Disc Communications Limited is one of Nigeria’s pioneer cable and satellite television stations in Nigeria.
He is passionate about the communications industry which also helped nurture from the cradle. Banjo spoke to hilary okeke on a wide range of issues.
Regulatory Environment, QoS and Competition
We cannot deny that the quality of service in the country is very low. If what we are experiencing in Lagos is considered bad, I can assure you that what is experienced outside Lagos is worse. I do not think the NCC understands their role as regards corrections and Quality of Service. If the regulator imposes adequate sanctions on service providers, you will see; Quality of Service will improve. Which is the way out? I think number portability is it. The kind of penalties attached to ensure that this is enforced must be draconian. The idea of number portability implies that one can move from one network to another with the same phone number. Most people do not like to change their phone numbers; they like people to know them with a particular number. Now, not only will that make the GSM companies gear up, it will also open the door for what we call localized GSM companies. For instance, if I felt Sokoto state was not covered properly, I can apply for license to do GSM operations there alone and provide excellent service to such a degree that people coming into the state can switch over to my network without changing their numbers. That is real competition. It means people can concentrate on a particular area and focus their efforts there. Why would it not work? It is because the big networks will sabotage other smaller ones. Quality of Service is bad, we all know that. I mean, we even have cases where operators tell you that they cannot give you details of your calls because you are a prepaid subscriber. Can you imagine that? Look at how criminal it is. You are taking my money and you cannot tell me how I spent it because I paid in advance? The person paying in advance should be the most valued customer because you are getting his money in advance. All these atrocities are going on and the regulators seem not to be doing anything. There are certain things you see wrong that should be addressed without anybody complaining. The profits that some of these cellular companies declare are so large that they can remedy all these issues. The only issues that are at par with quality of Service issue are probably sabotage and theft and those are reaching epidemic proportions. A lot of wire companies are closing down because of this menace; they cannot stem the tides of cable vandalism. And most of the time, this crime is perpetrated by this poor people who steal this copper cables and sell as scrap. The cities have better security records than the rural areas and to get better security, one needs to install his equipment within someone else’s premises.
Dominance of Satellite TV
It is not healthy in the sense that with such an organization that is actually controlled by another country and of course, they have the support that the local companies here do not have because in that country, the government recognizes the importance of the media; they recognize that the media can be used to topple government, control the views and feelings of the public. The local operators need more protection. The NBC has tried in this regards, I think they also need help at the legislative level. Let us look at the supposedly freest country in the world in terms of business, which is America. You cannot be in broadcasting business if you are not an American citizen. During the indigenization exercise way back in the 70s, people would establish a company in their houseboy’s name without his knowledge and still run the company as it is. If a foreigner wants to cause damage, he can do that and go back to his own country but if a Nigerian causes damage, he stays here, his family is here. Even the land that claims it is the land of the free has limits to that freedom. On the other hand, Multichoice has shown professionalism; you can see how they operate and many have even tried to copy their model, some with great success. The only thing I have an issue with, luckily Multichoice is trying to correct that, is the focus on foreign materials. As we can see, that company has made great strides to enhance its local content. From what I understand, even though they are our competitor, they are now engaging in covering our local league. I think they were airing the Glo league and they have brought equipment to cover more leagues. To me, it is a very good development.
Merger of NCC and NBC
I am confused at the concept of that merger, particularly in an African country where control of the media and broadcast is more important; it is second only to defense. The most important thing in most countries is defense; I mean, if you do not have defense, your country is nowhere. The next weapon in any country is the media, broadcast, I have always argued. The Soviet Union was toppled using the media propaganda. It was toppled without firing a shot. Now here, you want them to merge based on the fact that both platforms would be able to carry telecommunications and broadcasting? I think you must separate the people who monitor content because the focus of the NCC is on the money that they make; the 2.5% charges, etc. But in broadcasting, you have to focus on the content of programmes, how does it influence our youth. When you look at the council that set up the concept of the merger, I think the NBC had only one or two representatives. We got those priorities wrong. It is like somebody telling you that how you bring up a child is not important and you are busy chasing money up and down. So, that is one thing I do expect from Government, to realize that the NBC is in fact, a very important organization; far more important than the NCC in function and duty – you cannot even compare their functions; they do not even come close. The one is dealing with our sociology, our livelihood our culture and the other is just dealing with collecting money. I am confused with the merger – are we trying to copy some other countries? The only countries that merge the two are cultureless countries. Countries that are growing in leaps and bounds, such as China and the U.A.E are very careful about what they introduce into their societies. Even the average U.S citizen – is he aware of what is going on? Luckily, we Nigerians are used to looking at things our own way and it is difficult to fool us. Broadcasting is all about propaganda, it affects the mind, the way you think, your attitude; it should not be taken lightly. The most powerful Union in the world was toppled using the media. Communication does not come anywhere near broadcasting. I hope there will be a good response to the merger. If it is about the issue of frequency, we have a frequency management board, which is independent of both bodies. Why do you need to merge them? I would have thought that in a third world country, you should be able to monitor your broadcast with better sense of purpose. That should be the focus. But in a merger, people will move to where there is money, the telecoms.
Fringe Players in the Converging Arena
In broadcasting, yes they stand a chance. You see, the NBC as it is presently constituted, has always encouraged small operators. Two groups can merge, if the composition at the top and the ideology given to them is right, then you would have a good organization. Wherever you find government bodies, they are usually separated so that they can pressurize and focus on what they are set up to do. The tendency that the merged bodies would be able monitor and give the relevance and importance that is deserving of broadcasting is very low. That is the way I look at it because it is natural to focus on the one that brings in more money. Secondly, in broadcasting, there is the responsibility to do screening; you are applying philosophy, sociology and whatever to what is there; in communications, you just have your rules and regulations; you just follow them strictly, as much as you can. For example, you may have a 24-hour Christian programme broadcast in Imo state. There might be no objection, but that same programme broadcasting in Zamfara state would be seen as an attempt to undermine the people there. However, the telecoms are above board, it does not involve these feelings; it has to do with a specific service. It has nothing to do with the sentiments and beliefs of the people. In the South, you can make jokes but in the North, it may not be possible. So, what kinds of people make these judgments? It is really professionals who have been in that field, properly trained broadcast professionals. In telecoms, any good engineer who has managerial skills can take over the reins. But in broadcasting, you need to have flair or feel for it.
Local Content, Educative and Entertaining
Well as for entertaining, that has to do with your revenue. You have to do a programme that is entertaining or else nobody will buy your product. In the case of local content, the government has done very well. In the past 50 years, the NBC has increased its local content requirements and you can see the results immediately. In the telecoms, the Nitel monopoly was broken. In the past, we use to have about 400, 000 lines in the whole country but today, it is well over 30 million. In broadcasting, everybody was doing foreign programmes and they insisted on local content, look at what is happening with our Nollywood – there is an explosion now, broadcasters are now bringing out Nollywood channels. Government is meant to act like a father and not leave people to their own devices; they should realize what they are there to do and enhance it.
By Engr. Gbenga Adebayo
In 2001, when the first GSM call was made in Nigeria how many of us would have envisaged the digital world that we live in today? The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.
Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services. Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations. System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.
While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides. It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development. We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.
The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing. Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone. The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.
At the heart of the challenge the industry faces is the issue of rising costs. Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated. The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag. It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.
But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations. We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.
This is a critical moment for the industry. How we approach and resolve it will define the future of Nigeria’s digital economy. If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.
Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power. If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble. For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel. For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.
We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives. But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute. Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.
We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.
Engr. Gbenga Adebayo is the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON)
The .ng domain name, Nigeria’s country code top-level domain (ccTLD), is the nation’s critical resource in the digital space, says Adesola Akinsanya, the president of the Nigeria Internet Registration Association (NiRA).
Akintola Owolabi, Professor of Cost and Management Accounting at Lagos Business School (front – third from left; Adesola Akinsanya, the president of the Nigeria Internet Registration Association (NiRA) (Front – fourth from right), flanked by members of EBOD and Management Team of NiRA during a training programme at LBS.
The .ng domain extension is unique to Nigeria, and it can give businesses a strong local identity.
This can help establish trust with customers, which is especially important for businesses that rely on local customers.
Mr. Akinsanya made the comments at NiRA Executive Board of Directors (EBOD) and Management Training held at the Lagos Business School (LBS).
The NiRA Executive Board and Management Training at LBS spanned a series of intensive interactive sessions designed to address critical challenges and opportunities in the digital domain.
The training program emphasized the importance of strategic vision, ethical decision-making, and resilience in the face of digital disruptions.
Participants gained insights into global best practices in digital governance, risk management, and leveraging digital technologies for business growth and societal impact.
Mr. Akinsanya, highlighted the significance of the collaboration with LBS, stating, “The NiRA EBOD/Management Training at LBS underscores our commitment to fostering a robust digital ecosystem in Nigeria. It equips leaders with the expertise to address complex digital challenges especially in accounting and financial management while harnessing the immense opportunities of the digital age.”
The program featured distinguished speakers, industry practitioners, and faculty members from LBS, providing a holistic learning experience enriched with real-world case studies and practical insights.
Participants commended the program for its relevance, depth of content, and interactive learning approach, noting its immediate applicability to their roles and responsibilities.
The NiRA EBOD Training at LBS represents a milestone in advancing digital leadership and governance in Nigeria.
“By equipping leaders with cutting-edge knowledge and strategic insights, the program contributes to building a resilient and innovative digital ecosystem that drives sustainable growth and societal development, especially from NiRA perspective. We must fashion out ways of increasing .NG domain name adoption which is our national pride in the digital space”.
Speaking further on why Nigerians and businesses should adopt the .NG domain name, the NiRA president said, “.NG domain name gives your brand special recognition both on and offline.
“Using a .ng domain name can help your business stand out in the Nigerian and global market. It is a great way to differentiate your brand from competitors and establish a unique identity. A .ng domain name is easier to remember, which can make it more likely that customers will return to your website in the future”, he said.
“It instantly communicates to internet users that your business is located in Nigeria. This can be especially helpful if you operate in a niche or industry where location is important to customers”, the NiRA boss added.
He added that Google and other search engines prioritize local content in search results, hence using a .ng domain name can help improve your website’s search engine ranking for local searches.
Climate Action Africa (CAA), a leading advocate for climate resilience and sustainable development, has announced the opening of applications for the Deal Room at the 2024 Climate Action Africa Forum (CAAF24). The Deal Room is a groundbreaking platform that aims to connect high-impact climate innovators in Africa with potential investors seeking to accelerate sustainable solutions.
The CAAF Deal Room is a strategic initiative that aims to create opportunities for innovators in the climate-tech domain focusing on emission reduction, energy, agriculture, transportation, circular economy, and building and construction.
The goal of the Deal Room is to select finalists who will have the opportunity to pitch their innovative ideas and solutions at the upcoming 2024 Climate Action Africa Forum, which will be held on June 19th in Lagos, Nigeria.
The Deal Room aims to boost investments in Africa’s green economy by galvanising a community of innovators, entrepreneurs, and investors to create applicable solutions that can mitigate the challenges of climate change on the African continent.
The Deal Room session will facilitate financing for solutions contributing to the growth and sustainability of Africa’s green economy. These deals may encompass prize money, equity plans, debt financing, mergers and acquisitions, and other investment options.
“Through the CAAF24 Deal Room, we aim to bridge the critical gap between promising climate ventures and the essential resources they need to thrive,” says Grace Oluchi Mbah, Co-founder and Executive Director of Climate Action Africa (CAA). “By facilitating connections between passionate entrepreneurs and dedicated investors, we can collectively unlock the immense potential of climate solutions in Africa.”
The eligibility criteria for applying include:
● The company must be African-owned and operate in any of the 54 African countries.
● It must be a for-profit company, between 1-5 years post-incorporation, post-MVP (minimum viable product), and post-GTM (go-to-market).
● The company should leverage digital technology to deliver its business model.
● Female ownership is an added advantage.
Those eligible to apply include venture capitalists, impact investors, climate tech startups, Green SMEs (small and medium-sized enterprises), philanthropic organisations, and government representatives.
Following the CAAF24 deal-room will be a post-event accelerator in partnership with the Silicon Valley-based Founder Institute and IDEA Africa. This Africa-wide initiative is specifically designed to further accelerate and enhance support for promising Climate Tech startups and founders who participated in the Deal Room.
The official unveiling of this accelerator will take place at the Climate Action Africa Forum 2024 (CAAF24), marking a significant step forward in driving Climate Tech innovations throughout Africa.
Applications for the CAAF24 Deal Room are open from April 22nd until May 17th. Interested applicants can register at https://deal.caaf.africa/register.
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