General News
NIPOST Rues Shrinking Mail Volume, Misses Revenue Target
Nigeria Postal Service (NIPOST) has decried the shrinking volume of mails on daily basis adding that the case is being worsened by companies now preferring compact discs (CDs) to printed annual report, which form bulk of NIPOST’s business platform.
Mike Umo, general manager, BulkPost Venture, an arm of NIPOST told Nigeria CommunicationsWeek in Lagos that owing to present business trends the Venture has found itself, it has become extremely difficult to attain its over N700million annual revenue target.
“Although we still have few weeks to the end of 2013, but we have not achieved our revenue targets. The year, I wouldn’t say is generally bad for us, on the average it is still acceptable. The issue is that mail volume is shrinking by the day; especially when companies in the way to cut cost, they have resulted to converting Annual Reports (ARs) to compact discs (CDs). Now, reports that use to fetch us, by weight, N150:00 or N200:00 per copy have been reduced to CDs. And CDs no matter how padded it may be, it cannot by, the virtues of weight and monetary, be more than N60:00.
“Here in BulkPost Venture, we have a ratio of 60:40 that we give to courier operators. So, with 60% of N60:00 it is difficult for us to meet our targets (revenue wise). Along the line, especially when we had the heat so much, management had to look at the issues; at the same time, customers too were complaining about CDs,” the GM said.
Umo also explained that to convey a CD from one end to another, most times, leave the plates in bad condition. He said that some of the customers have complained of cracking of the CD. “So management rose to the occasion to repackage them in manner that they will arrive to the destinations in good shape. That made the management to come up with a flat rate for CDs, currently pegged at N150:00,” he said.
The management’s decision, he noted, actually cushioned the effect on the Venture’s revenue, otherwise the process really had its nosedived.
“For instance, in the BulkPost we have over N700million target. So far, we have not been able to meet the target, unless something happens before the end of the year. Be that as it may, we still thank God, because if not the management’s position the revenue would have been so down. Meanwhile, the customers are patronizing us because we have entrenched trust in the system.
“Although some of them tend to reduce the quantity of CDs they would have produced. For instance a Company with 500 shareholders may decide to 300. Invariably, the N150:00 has not made us to be on advantage hence the reduction in the number of CD copies produced still affect the revenue drive,” the BulkPost boss said.
On strategies to tackle challenges in the coming year, he said that the Venture will not relent in exploring new grounds and harnessing prospect customers. “We are considering going into direct marketing mails. And we believe that if we explore that area very well it will help us overcome most of our challenges,” he said.
He added that the Venture is organizing a Forum in Lagos on December 12 at Sheraton Hotel, where stakeholders will look at critical issues in the sector.
Vitel Wireless, Nigeria’s first Mobile Virtual Network Operator (MVNO) has entered into partnership with Slot Systems Limited for distribution of its SIM cards and other gadgets around the country.
Chudi Nwabueze, managing director, Vitel Wireless who described the partnership as a defining moment for his company said Vitel Wireles’s purpose is clear: to transform connectivity in Nigeria through innovation, affordability, and seamless access.
Nwabueze, who spoke in Lagos recently at the official engagement with Slot said Vitel Wireless, as the nation’s first Mobile Virtual Network Operator is committed to creating smart, reliable solutions that break down barriers to communication and make it easier and more cost-effective for people to stay connected anytime, anywhere.
“This partnership with SLOT is a meeting of shared values and vision. By combining our innovative mobile services with SLOT’s extensive retail presence, we are making Vitel Wireless SIM cards and the connectivity they offer more accessible than ever before. Customers will now be able to purchase, register, and top-up their SIM cards conveniently within their own communities.”
He described the collaboration as more than just distribution, ”it is about empowering people. It is about bridging the connectivity gap with technology, accessibility, and affordability at the heart of everything we do.”
Nwabueze further explained Vitel Wireless SIM card is a location technology awareness card. It can track whereabouts of a person. This information can help the police, on official demand, in case of unfortunate incident.
He said the disadvantages of tracking a person’s whereabout outweighs the advantages.
He explained that access code is given to another person for tracking.
“We operate as a core network and we have integrated with all the major networks in Nigeria, including international calls. So, on a simple language, we are a GSM company, that you do call, SMS, data and we offer more value like safety. And the good news is that we are spread out in the 36 States plus Abuja FCT in Nigeria.
Digital Realty Nigeria, a carrier-neutral data centre operator, will be launching its ServiceFabric® platform alongside opening of its new LKK2 Data Centre in Lagos today.
ServiceFabric Platform in Lagos Nigeria, aligned with Digital Realty’s commitment to enabling seamless global interconnectivity for businesses, providing enterprise customers in Nigeria with the ability to connect whenever, wherever, and to whoever they need to.
Engr. Ikechukwu Nnamani, managing director, Digital Realty Nigeria, said that the presence of ServiceFabric in Lagos will support the growing demand for hybrid IT and multi-cloud connectivity, empowering businesses with a secure, software-defined interconnection platform.
“As you are aware, data is driving our world forward across every aspect of the economy. To unlock the opportunities of data we provide the meeting place for Companies, Technologies and Data to come together across Africa, one of the fastest growing continents, and in the process, we enable bold new ways to expand and grow,” he said.
Digital Realty’s global data centre footprint gives customers access to the connected communities that matter to them with over 300 facilities in 50 global metros across 25 countries on six continents. Digital Realty currently maintains client base of over 5,000 customers including over 1,500+ enterprises, 1,300+ networks service providers, and over 1,000+ cloud and IT providers. It offers datacentre services to 250+ of the Fortune 500 companies.
Meta Platforms has frozen hiring in its artificial intelligence division following months of aggressive recruitment, according to sources familiar with the matter.
The hiring freeze, which took effect last week, coincides with a broader restructuring of the company and restricts current employees from moving between teams within the AI division. The duration of the freeze has not been disclosed.
“There might be exceptions to the block on external hires, but they would need permission from Meta’s chief AI officer, Alexandr Wang,” the sources said. A Meta spokesperson confirmed the freeze, describing it as “basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
Meta has been a leading player in the AI talent race, offering some researchers pay packages worth nine figures and acquiring startups to secure key personnel. Analysts have raised concerns over the high cost of such hiring, warning that Meta’s stock-based compensation could affect shareholder returns.
The restructuring divides Meta’s AI operations into four teams: TBD Lab, focused on superintelligence; an AI products team; an infrastructure team; and a long-term exploratory team called Fundamental AI Research. The reorganization follows criticism of the company’s previous AGI Foundations team, responsible for Meta’s Llama large language models, which underperformed expectations after its latest release.
After the Llama release in April, CEO Mark Zuckerberg became personally involved in recruiting, reaching out to researchers at OpenAI, Google DeepMind, and other labs. Offers sometimes reached $100 million in total compensation, with one overture to Thinking Machines Lab co-founder Andrew Tulloch valued at $1.5 billion, though he declined.
To strengthen its AI efforts, Meta also brought on Scale AI co-founder Alexandr Wang, former GitHub CEO Nat Friedman, and Safe Superintelligence co-founder Daniel Gross, with the company acquiring stakes in their ventures as part of the recruitment. By mid-August, Meta had hired over 50 AI researchers and engineers from companies including OpenAI, Google, Apple, xAI, and Anthropic.
Investor concern over the cost of tech giants’ AI expansions has contributed to a recent selloff in technology stocks. In an August 18 research note, Morgan Stanley analysts warned that rising stock-based compensation at Meta and Google could either drive AI breakthroughs or dilute shareholder value without clear innovation gains.
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