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Telcos Wax Worriedly over Annual Due Review by FRC

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Gbenga Adebayo, chairman, ALTON
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Association of licensed Telecom Companies of Nigeria (ALTON), umbrella body of telecom operators in the country, has raised the alarm over the review of annual payment structure under the Financial Reporting Council Amendment Act 2023 (FRC Act), warning that its implementation will hurt telecom operators.

Telcos Wax Worriedly over Annual Due Review by FRC

The group warned that “the new structure would pose significant challenges for our members, especially in light of the prevailing harsh economic conditions in the country”.

A letter addressed to Dr Rabiu Olowo, executive secretary/CEO, Financial Reporting Council of Nigeria, dated September 13, 2024 and jointly endorsed by Gbenga Adebayo, chairman, and Gbolahan Awonuga, executive secretary of ALTON respectively, highlighted the concern of the reviewed annual payment structure.

“ALTON writes to express its deep concerns regarding the recent review of the annual payment structure under the Financial Reporting Council Amendment Act 2023 (FRC Act) particularly as it relates to non-quoted public interest companies.

As you are aware, the new payment structure is based on a percentage of the annual turnover of our member companies, rather than the previous maximum cap of N1 million that was payable under the Act. Section 33(1)(d) of the Act now requires private companies to pay their annual dues based on the computation below: 0.02% of annual turnover of N25 million and below; 0.025% of annual turnover of more than N25 million but not more than N50 million; 0.03% of annual turnover of more than N50million but not more than N500 million; 0.04% of annual turnover of more than N500 million but not more than N1 billion; 0.045% of annual turnover of more than N1 billion but not more than N10 billion; and 0.05% of annual turnover of more than N10 billion.

“On the other hand, Section 33(1) (c) of the Act determines the annual dues payable by quoted companies with reference to a percentage of their market capitalization up to a pre-determined lower amount, which is more favourable to publicly quoted entities compared to the non-publicly quoted entities.  For example, a publicly quoted company with market capitalization of N1 trillion will be required to pay N25 million as annual dues, whilst a non-publicly quoted company will be required to pay 0.05 percent of N1 trillion amounting to N500million. We are concerned about the huge disparity in the amounts payable as annual fees by entities having the same turnover figure deserves to be addressed in the face of the harsh operating environment in the country.

“While we understand the rationale behind this review, we believe that implementing the new structure would pose significant challenges for our members, especially in light of the prevailing harsh economic conditions in the country. The telecommunications industry in Nigeria has been facing numerous headwinds, including rising operating costs and foreign exchange fluctuations. The current payment structure will place an undue burden on our members, potentially impacting their ability to maintain operations and continue providing critical services to the Nigerian public,” ALTON wrote.

The group noted that when considering the balance between enforcing the law and the need for Foreign Direct Investment (FDI), as well as the demand for bridging the telecom infrastructure deficit to enhance digital penetration, it urged the FRC to consider adopting alternative computation for companies within the telecommunications industry.

“We respectfully urge the FRC to consider the following suggestions as alternatives: Computation of annual dues based on profit and not revenue.

“By virtue of the nature of the telecommunications industry, our members deploy significant capital towards carrying out their operations and bridging the telecommunications gap within the country. As such, there is a great disparity between the revenue of these companies and the profit which they declare. For example, a company might have a turnover of N200 billion and declare a profit of only N15 billion and it would be unfair for such a company to pay FRC dues based on its revenue. We consequently request that the FRC uses its good office to consider computation of the annual dues for companies within the telecommunications industry, based on their profit as opposed to revenue,” ALTON suggested.

Another suggestion was the reintroduction of a pre-determined cap on the FRC dues.

“We note that the new Act in Section 33 (1)(c) computes the annual dues payable by public companies based on their market capitalization but subject to a pre-determined cap. For example, a public company with a market capitalization of N500 billion will either pay 0.0025% of this amount or N20 million, whichever is lower. On the other hand, a private company with the same revenue will pay N250 million. This disparity is significant and unfair to private companies. In the interest of fairness, we urge your good office to consider reintroducing a pre-determined cap on the dues payable by non- quoted public interest entities, similar to that which is applicable to public companies.

“In the light of the foregoing, ALTON respectfully request you to use your good office to change the basis of computing the annual dues payable based on either of the option mentioned above.   We are committed to working constructively with the FRC to find a mutually acceptable resolution to this matter. We would be more than willing to arrange a meeting with your office to discuss this issue in detail and explore alternative solutions or payment arrangements that would be more manageable for our member companies.

“We firmly believe that a collaborative approach would be in the best interest of the industry, the regulatory environment, and the overall economic well-being of the country,” ALTON stated.


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New Investment Fund Targets Acceleration of Emerging Technology in Nigeria

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The International Rescue Committee (IRC) has announced the formation of Airbel Ventures, a new humanitarian impact investing fund aimed at accelerating the introduction and scaling of breakthrough technologies in crisis-affected communities.

The fund will invest in companies whose ideas have the potential to change humanitarian response, including digital infrastructure for frontline health systems and climate-resilient agriculture.

The launch of Airbel Ventures follows a period of rapid innovation at the IRC, despite the humanitarian sector facing record funding cuts.

In the past year, the IRC’s Airbel Impact Lab has advanced more than twenty Artificial Intelligence (AI) and technology initiatives—from anticipatory action tools powered by climate and vulnerability data, to frontline service delivery using safe, orchestrated AI systems, to breakthrough diagnostic tools for emerging diseases.

Airbel Ventures’ first impact investment is in Signalytic, a company delivering solar-powered computing devices that ensure reliable electricity and connectivity for remote health facilities.

Following the investment, the IRC will pilot Signalytic’s technology with its Nigeria Health team, demonstrating the viability of next-generation digital infrastructure in humanitarian settings.

“We know breakthrough solutions already exist—what’s missing is the path to scale in humanitarian contexts,” said Dr. Jeannie Annan, Senior Vice President for Research & Innovation at the IRC and head of the Airbel Impact Lab.

 


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MTN Nigeria Suffers 9,218 Fibre Cuts in 2025 as Vandalism, Theft Cripple Network

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MTN Nigeria, the country’s largest telecommunications operator, recorded a historic surge in network disruptions in 2025, suffering 9,218 fibre cuts as of December 31, alongside 211 base station sites affected by theft and vandalism, incidents that disrupted mobile and data services relied upon daily by millions of Nigerians.

MTN Nigeria Suffers 9,218 Fibre Cuts in 2025 as Vandalism, Theft Cripple Network

The data was revealed by Dr Karl Toriola, chief executive officer/managing director, MTN Nigeria via a social media post titled ‘MTN Nigeria 2025 Wrapped’.

The scale of the damage highlights the growing vulnerability of Nigeria’s telecommunications infrastructure, which has come under increasing pressure from road construction activities, cable theft and deliberate acts of vandalism.

MTN said 5,478 fibre cuts occurred within just the first seven months of 2025, with 760 incidents recorded in July alone, underscoring the intensity of the challenge.

Some of the incidents had wide-ranging consequences, knocking out connectivity across multiple states simultaneously and affecting voice calls, data services, digital payments and enterprise operations.

The company described the situation as a national infrastructure problem, rather than an isolated corporate issue, given the economy’s deep dependence on mobile networks.

“These gaps were shaped by real operational challenges such as fibre cuts, theft, and vandalism. Their impact is felt directly by customers and reflected in what they tell us,” Toriola,

The disruptions were reflected in customer feedback volumes, as MTN handled an unprecedented number of complaints during the year. The operator said it resolved 1,624,263 customer complaints in 2025, spanning call centres, social media platforms, emails and physical service centres nationwide.

Despite the setbacks, MTN pointed to signs of operational resilience. The company retained its ranking as Nigeria’s best network by Ookla, returned to profitability after a challenging period, declared an interim dividend, and expanded its subscriber base to over 85 million users by September 2025.

The figures show that while Nigeria’s telecom operators continue to invest heavily in network expansion and customer service, infrastructure sabotage remains a major drag on service quality and operating costs.

MTN acknowledged that performance improvements remain a work in progress. “We are not where we want to be yet. We see you. We hear you. We exist because of you. And we will get better,” Toriola said.

As the company enters its 25th year of operations in Nigeria, Toriola said MTN is doubling down on customer-centricity, treating every piece of feedback as a guide for improvement, while also stepping up engagement with government agencies.

The CEO renewed calls for stronger regulatory and legal protections for telecommunications infrastructure, urging policymakers to classify fibre cables, base stations and other critical assets as national infrastructure and criminalise vandalism to deter repeat attacks.


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NCC Licences Six New ISPs to Challenge Telcos, Satellite Giants

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Nigerian Communications Commission (NCC) has granted operating licences to six new Internet Service Providers (ISPs), effective January 1, 2026, raising the total number of authorised ISPs in the country to 231 from 225 recorded in December 2025.

NCC Licences Six New ISPs to Challenge Telcos, Satellite Giants

NCC

The newly licensed firms are Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Ltd, Boost ISP Limited, and Amazon Kuiper Nigeria Limited.

Five of these companies are headquartered in Lagos, while Granet Technologies Limited operates from Owerri in Imo State, highlighting the persistent concentration of broadband infrastructure in major commercial hubs like Lagos, Abuja, and Port Harcourt.

This development intensifies competition in Nigeria’s broadband market, which faces pressure from dominant mobile network operators such as MTN and Airtel, alongside rapid expansion by satellite providers like Starlink.

Traditional ISPs continue to grapple with shrinking customer bases, aggressive data pricing from telcos, and satellite disruptions, even as NCC data from Q2 2025 showed Spectranet, Starlink, and FibreOne controlling about 65 per cent of the 313,713 active ISP subscribers.

The inclusion of Amazon Kuiper Nigeria Limited marks a significant entry of global satellite broadband competition, building on Nigeria’s recent approvals for other low Earth orbit providers to enhance connectivity in underserved areas.

Industry analysts view the licences as a strategic push to improve internet quality amid rising demand for digital services, though geographic clustering underscores ongoing infrastructure challenges outside urban centres.

NCC’s move aligns with broader efforts to foster a competitive telecoms sector critical to Nigeria’s digital economy ambitions.


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