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MTN Pays Billions in Fees, Debts, Others

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Some of the biggest operating expenses of MTN Nigeria in 2019, went into payments for professional fees, bad debts and maintenance costs, the company’s latest financial statement has revealed.

 

According to the statement filed at the Nigerian Stock Exchange (NSE), MTN Nigeria had about N36.6 billion as operating expenses against the MTN Group’s expenditure of about N37.3 billion.

 

The financial statement was for the nine months’ period ended September 30, 2019.

 

Details of the report showed the professional fees by MTN Nigeria for the period was about N14.5 billion, maintenance cost (N9.6 billion), and bad debts written off (N9.4 billion), against MTN Group’s N15 billion, N9.6 billion and N9.4 billion respectively.

 

Compared with the figures for the corresponding period for 2018, the report showed MTN Nigeria expenditure for professional fees stood at about N19.3 billion, maintenance cost (N9.8 billion), and bad debts written off (N7.8billion).

 

Similarly, MTN Group expenditure for 2018 showed about N20 billion went for professional fees; maintenance cost N9.8 billion and bad debts written off N7.8 billion.

 

Details of the services for which the professional fees were paid were not disclosed.

 

Other operating expenses recorded in the statement included about N4 billion on rent, rates, utilities and other office running costs for MTN Nigeria, against similar expenses (N4 billion) by MTN Group for the period.

 

Also, expenditure on Information Technology Development Levy by MTN Nigeria took about N3.7 billion, same as MTN Group (N3.7 billion); Fixed assets written off (N3.04 billion) for both MTN Nigeria and the Group, and trainings, travels and entertainment cost N2.3 billion for MTN Nigeria, against N2.24 billion for the Group.

 

In addition, MTN Nigeria spent N1.1 billion, same as the Group (N1.1 billion) for Insurance cost, audit fees (N213 million) by MTN Nigeria and Group respectively.

 

About N1.42 billion and N1.5 billion respectively were for other expenses by MTN Nigeria and Group.

 

The company said other expenses covered bank charges, subscriptions, office refreshments and security costs by both MTN Nigeria and the Group.

 

The report said MTN Nigeria lost about N8.9 billion for reversal of impairment losses on contract with various customers against N9.1 billion lost by the Group for a similar reason for the period.

 

Another N3.1 billion each were lost by MTN Nigeria and the Group for Reversal of impairment/(impairment) of property, plant and equipment, in addition to about N242 million each lost by both MTN Nigeria and the Group.

 

Beyond these expenses, the report said MTN Nigeria incurred about N178.1 billion for the period direct network operating costs, consisting of N121.9 billion as BTS leases; N33.5 billion as network maintenance; N22.1 billion as regulatory fees, and N7328 million as an annual numbering plan.

 

The same expenditures were recorded for the Group in all the subcategories of direct network costs, except for the annual numbering plan and network maintenance expenses, for which about N845.8 million and N33.2 billion respectively were paid.

 

On income tax expenses, the report said out of about N64.5billion by MTN Nigeria and N63.7 billion by the Group, Company Income Tax (CIT) took N52 billion (MTN Nigeria), N52.4 billion (Group); Education Tax N6.5 billion each (MTN Nigeria and Group) and Nigerian Police Trust Fund N10.7 million each for MTN Nigeria and Group.

 

Also, the report includes additional N5.97 billion as deferred tax by MTN Nigeria and N4.84 million by the Group for the period.

 

Since MTN began business in Nigeria in 2001, it has made payments to its overseas affiliates located in known tax havens, including MTN Dubai and MTN International in Mauritius.

 


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Zipline Achieves One Millionth Delivery Milestone

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Zipline, the leading force in drone logistics delivery, has reached a monumental achievement with its one-millionth delivery to customers, signifying a significant leap forward in the logistics delivery sector. This historic milestone was marked by the delivery of two bags of IV fluid from a Zipline distribution center in Ghana to a local health facility.

Renowned for its innovative approach to designing, building, and operating autonomous delivery drones, Zipline’s zero-emission technology has garnered acclaim, covering over 70 million commercial miles across four continents.

Backed by investments surpassing several millions of dollars from notable supporters like Sequoia Capital, a16z, and Google Ventures, Zipline has firmly established itself as a disruptive leader in the industry. CEO Keller Rinaudo emphasizes the company’s commitment to key markets such as healthcare, quick commerce, and food delivery, envisioning a future where Zipline achieves 1 million deliveries per day.

“The three areas where the incentive really makes the most sense today are health care, quick commerce, and food,” underscoring Zipline’s commitment to partnering with top brands and institutions to transform the future of logistics using autonomous drones –  Keller Rinaudo Cliffton.

In Africa, Zipline has made a profound impact, forging significant partnerships across the continent. In Ghana alone, which accounts for about 54% of the one-millionth delivery milestone, Zipline’s collaboration with the government and health ministry has been pivotal. Since its inception, Zipline has completed over 540,000 drone delivery flights across Ghana, encompassing the delivery of crucial supplies, including 3,566,500 units of vaccines, 2,825,210 units of medical products, 14,807 units of blood products, and 18,289 units of animal health products. These deliveries have directly impacted the lives of over 17 million Ghanaians across 13 regions, saving 6,014 lives through emergency deliveries, including blood products and snake antivenom since 2019.

Beyond mere statistics, the company has facilitated the delivery of 12.2 million vaccine doses, including 2.8 million Covid-19 vaccines, leading to a 21% increase in vaccination coverage and a 44% reduction in missed opportunities to vaccinate in Ghana. These efforts have potentially saved 727 lives due to increased vaccination coverage. Additionally, Zipline’s infrastructure expansion in Ghana, with six distribution centers strategically located across the country, has enabled swift and efficient on-demand drone delivery services.

Not only this, the technology has facilitated the vaccination of 104,000 cattle against Anthrax in northern Ghana, safeguarding both human and animal lives. Such interventions have also extended to the agricultural sector, where 10.4 million doses of poultry vaccines have been delivered to poultry farmers nationwide, combating diseases such as Newcastle disease, Fowl pox, and Gumboro.

But Zipline’s impact in Africa extends far beyond Ghana’s borders. Operating in Rwanda, Kenya, Côte D’Ivoire, and Nigeria, the company has become a beacon of hope for healthcare accessibility and disease prevention. In Rwanda, Zipline serves as a lifeline, delivering 75% of the country’s blood supply outside of Kigali, drastically reducing maternal mortality rates due to postpartum hemorrhage by 88%. Additionally, the company’s deliveries of agricultural products have elevated farmers’ fertility rates by 10% compared to the national average.

In Kenya, Zipline’s collaborations with the Elton John AIDS Foundation have facilitated the delivery of HIV/AIDS prevention and treatment products, empowering individuals to manage their health effectively. Similarly, in Nigeria, Zipline’s expansive coverage encompasses over 500 health facilities in Kaduna, more than 350 in Cross River State, and 200 in Bayelsa. Teaming up with Gavi, the Vaccine Alliance, Zipline focuses on reaching children in remote regions, ensuring equitable access to life-saving immunizations.

Zipline’s adaptive approach and tailored delivery services reflect its commitment to meeting the diverse needs of populations and sectors. The achievement of the one millionth delivery milestone underscores its dedication to enhancing healthcare outcomes and addressing societal needs across Africa. As Zipline continues to innovate and expand its reach, it is poised to shape the future of healthcare delivery on the continent and beyond.

 

 

 


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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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