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The NCC, Telcos and the Tariff Discourse

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Aminu Maida, executive vice chairman, NCC
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By Dr. Falade Muritala Adesola

The telecoms sector in Nigeria is viewed by some as a model of regulatory excellence. Other African countries often visit Nigeria to study the sector, aiming to understand the regulatory framework established by the NCC. This regulatory excellence is evident in the growth and success of the telecoms industry, which currently contributes over 16% to Nigeria’s GDP.

Aminu Maida, executive vice chairman, NCC

The telecoms industry in Nigeria is a source of pride for everyone; it’s arguably the only sector that can be considered a successful model of liberalization in the country.

 

Amidst all the successes, the industry is still faced with multiple challenges, including multiple taxation, vandalisation, and changing macro realities. Noteworthy of mention is efforts by the NCC under the new Executive Vice Chairman, Dr Maida to further reposition the industry. Whilst the focus in the past has always been quality of service (QoS) the direction under the new EVC has shifted to quality of experience (QoE) which is more customer-centric and places more demands on the telecoms operators.

The EVC has continued to emphasize this at various engagements with stakeholders in the industry. Beyond advocacy, the visible steps taken so far by NCC under Dr Maida aimed at safeguarding telecom infrastructure deserve commendation.  The recent incident of multiple fibre cut, which resulted in widespread network disruptions for one of the major telecoms operators, prompted swift action from the EVC. His advocacy for stricter penalties against perpetrators led to moves by the government to criminalize cable damages and vandalisation of telecoms infrastructure. This proactive stance not only deters future recklessness but also instils confidence among telecoms operators regarding the safety of their investments.  However, the long-term viability of the industry hinges on a multifaceted approach that will include protection of telecoms infrastructure, which the NCC is currently spearheading, and sustainable pricing mechanism.

The Nigerian economy is currently grappling with new economic realities that continue to threaten its stability. These realities are not unique to Nigeria but rather a global phenomenon affecting countries around the world. A complex set of factors are exerting considerable pressure on the global economy and causing a slowdown in global growth. This is occurring alongside a marked increase in inflation. As a result, businesses are confronted with a range of challenges including rising costs of capital, a tight labour market, and geopolitical risks. These challenges have been worsened by disruptions due to the COVID-19 pandemic, the war in Ukraine, Israel, and the tensions between the US and China. Many countries are revisiting their policies and implementing new strategies to navigate the turbulent waters.

In Nigeria, the struggle to strengthen the value of the naira to the dollar has continued to gallop as the Central Bank of Nigeria (CBN) continues to pursue new approaches to address the situation. However, challenges such as infrastructural deficit and security concerns continue to persist, further exacerbating the issue. Yet, Nigeria continues to face a significant rise in food prices over the past few years, worsened by the removal of subsidies on petrol, amongst other things. This has resulted in a weakened purchasing power for many citizens with attendant effects on businesses.

In recent times, Nigeria’s naira has tumbled across both official and unofficial markets due to increased forex demand, causing a significant spike in prices of goods and services across the country. The National Bureau of Statistics (NBS) reported that items contributing to the inflation’s headline index on a year-on-year basis are food and non-alcoholic beverages (16.42%), housing, water, electricity, gas and other fuel (5.30%), clothing and footwear (2.24%), and transport (2.06%). The NBS explained that the rise in food inflation on a month-on-month basis is due to an increase in the average prices of bread and cereals, potatoes, yams, and other tubers, fish, coffee, tea, and cocoa.

These developments paint a bleak picture of the current economic situation in Nigeria and amid all these, discourse around telecoms tariff review is beginning to take centre stage, drawing attention to the need for a delicate balance between economic realities, quality of experience, which impacts directly on customer satisfaction, and telecommunications industry sustainability. For over a decade, major telecom operators like Airtel, MTN, and GLO have maintained their pricing structures, despite mounting challenges such as currency devaluation and inflation while other sectors have adjusted prices to cope with economic fluctuations.

For instance, entertainment giant, DStv, has increased its prices more than two times in the past year. Netflix has also reviewed its prices. Nigerian Breweries have also adjusted their prices to reflect the current realities, but telecom operators have maintained their pricing despite economic fluctuations, grappling with a devalued currency and rising operational costs.

In Nigeria’s telecommunications sector, diesel consumption is a critical factor influencing service reliability and progression. With numerous sites dispersed across the nation, a substantial portion operates on generators 24/7, necessitating continuous fuel supply. This escalating cost of diesel not only directly impacts operational expenses but also cascades into broader challenges such as site accessibility and infrastructural maintenance. As prices soar across various sectors, the telecom industry continues to grapple with the dilemma of maintaining quality services while operating within constrained pricing frameworks.

The prevailing reality suggests that the long-term viability of the telecoms sector now hinges on striking a delicate balance between affordability and quality of experience for consumers on the one hand,  and profitability and survival for operators on the other hand.

Quality of experience stands at the forefront of consumer expectations in the telecom sector. However, the telecoms operators must continue to invest to maintain superior quality of experience. In the same vein, continuous and increased investment is a function of profitability. The telcos can only invest from their profits. There can be no investment without profitability. One way to gurantee profitability and sustainability of the industry is a review of the existing pricing structure.

Pricing autonomy is a linchpin for industry sustainability. The ability to set cost-reflective tariffs is indispensable for ensuring adequate returns on investment and fostering long-term viability. Telecom operators require a more transparent and collaborative approach to tariff adjustments, emphasizing the importance of a pricing framework aligned with operational realities. The current pricing window, sanctioned by regulators, is a foundation, but the industry needs greater flexibility to navigate cost fluctuations while ensuring service quality and accessibility remain uncompromised.

The clamour for cost-reflective tariffs is not merely about short-term gains but a strategic imperative to sustain the sector’s growth trajectory. The transition from 2G to 5G and with 6G on the way symbolizes the industry’s evolution, made possible by substantial investments that fuel innovation and expand service capabilities. However, without conducive regulatory frameworks that incentivize investment, the industry risks stagnation, jeopardizing future advancements and undermining service availability.

The telecommunications industry in Nigeria is currently at a crossroads where infrastructural challenges, pricing dynamics, and regulatory frameworks intersect, offering a unique opportunity for swift and collective action. A thriving and resilient telecommunications ecosystem has the potential to empower individuals, drive economic growth and enrich lives across the nation of Nigeria. Whilst the industry regulator has delivered commendably, prevailing realities demand a new approach to ensure continued viability of the sector.

Dr. Falade Muritala Adesola is a Senior Lecturer and former HOD, Computer and Information Sciences Department, Trinity University.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Visa Launches Report on Digital Payment Landscape in Nigeria, Shows Positive Outlook

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Visa, a global leader in payments, today announced the launch of a new report, ‘Value of Acceptance: Understanding the Digital Payment Landscape in Nigeria,’ which highlights substantial growth potential for digital payments, particularly among small and medium-sized enterprises (SMEs).

In Nigeria, digital payments are proving beneficial for surveyed SMEs, with nearly 90% believing that it boosts revenue and customer footfall. This growing confidence in digital transactions, especially cards, is coupled with a desire for further digitization, with 76% of cash-only SMEs planning to invest in new payment technologies.

The study also reveals that more than half of merchants already prefer digital payments, with 44% reporting lost sales due to customers’ lack of cash and 62% expressing concerns over fraud risk associated with cash.

Nigeria’s Digital Payments Momentum

An overwhelmingly positive outlook on digital payment investment emerged in the report, with 83% of merchants surveyed seeing this as a crucial component for growth, boosting sales, reducing fraud, and enhancing convenience among customers,
“Nigeria’s digital payments landscape is rapidly evolving, with a growing inclination towards digital transactions,” stated Andrew Uaboi, Vice President & Head, Visa West Africa.

“This transformation not only holds the promise of bolstering SMEs prosperity but can also help the economy to thrive.

“At Visa, we look forward to working together with our partners to further drive this transformation, enabling individuals, merchants, and businesses to grow and participate in the digital economy.”

Addressing Challenges to Unlock Full Potential

Unlocking digital payments’ full potential in Nigeria will require confronting key challenges. There is an overarching need to enhance financial literacy and raise awareness about the benefits of digital payments while also incentivizing their usage among customers.

With 76% of cash-only SMEs surveyed intending to get a point-of-sale (POS) device in the near future, an opportunity emerges to accelerate adoption through simplifying onboarding.

In addition, improving infrastructure to counteract concerns around payments failures (42%) can enhance confidence in digitization. To address fraud concerns, educational campaigns are vital to highlighting the robust security features of digital payments, especially the lower fraud risk associated with card payments.

Visa’s established cybersecurity capabilities can be instrumental to building trust across the digital payments landscape in Nigeria by helping to harness confidence across both the SME and consumer segments.

The Broader Value of Digital Payment Acceptance

Digital payments are crucial for Nigerian SMEs for a number of reasons including – boosting revenue through an increasingly cashless customer base, improving customer satisfaction with faster payments, and reducing operational risks by minimizing cash handling. Digital transaction records also provide valuable data that facilitate access to financing and stimulate growth.

While cash is still seen as quick and convenient, cards offer an advantage across expense tracking, spending encouragement, and enhanced security. Meanwhile, mobile and digital wallets offer an innovative and competitive edge. Promoting the adoption of preferred methods, particularly card payments, is crucial for driving growth.

Beyond direct benefits, digital payment adoption drives economic growth and financial inclusion, by connecting the unbanked to the formal financial system and enabling access to savings, credit, and insurance.

Research shows that the transition to the digital economy can generate 1-2% annual GDP growth; a mere 1% increase in card usage generates an average $67 billion annual increase in goods and services consumption across 70 countries and territories.

Visa: A Partner in Driving Digital Payment Adoption

Visa is uniquely positioned to support Nigeria’s transition to a more digital economy. As a trusted advisor and partner, Visa offers a range of capabilities to help governments, financial institutions, businesses, and technology providers enhance their digital payment acceptance maturity.

Visa’s suite of solutions includes programs for specific merchant segments, innovations like Tap to Phone, Contactless Payments and Click to Pay, and resources educating businesses about the benefits of digital payments.

About the Visa Value of Acceptance report

Visa’s ‘Value of Acceptance: Understanding the Digital Payment Landscape in Nigeria’ report, conducted by 4Sight Research & Analytics, examines the current state of digital payment acceptance, exploring both opportunities and challenges. The findings are based on face-to-face interviews with 250 SME owners/managers who are key decision-makers with respect to day-to-day business decisions.


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Gombe Commissioner of Police Visits GBB Command Centre, Strengthens Collaboration on ICT-Driven Security Solutions

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L-r : Ibrahim Bello, Regional Coordinator, North East, Galaxy Backbone(GBB) Limited, CP Bello Yahaya, Commissioner of Police, Gombe State. During the tour of GBB's state of the art Safe City, Command Centre in Gombe.
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Galaxy Backbone (GBB) Limited welcomed the newly appointed Commissioner of Police for Gombe State, CP Bello Yahaya, on a courtesy visit to its North East Regional Office and Safe City Emergency Command Centre.

This visit underscored the growing synergy between law enforcement and technology-driven solutions in strengthening security operations and fostering digital transformation in the region.

During the visit, CP Bello Yahaya was received by Mr. Ibrahim Bello, Regional Coordinator of GBB North East Regional Office, alongside key members of the GBB team.

The engagement provided a platform to explore strategic collaborations aimed at enhancing security infrastructure, digital transformation, and capacity-building initiatives for the Gombe State Police Command.

The Commissioner was taken on a guided tour of the Safe City Emergency Command Centre, a state-of-the-art facility that forms a critical part of the National Information and Communications Technology Infrastructure Backbone (NICTIB) project.

The centre plays a pivotal role in improving security architecture across Gombe State and the North East region, leveraging cutting-edge surveillance systems, real-time monitoring tools, and integrated emergency response mechanisms.

With its advanced Unified Communications System, security analytics, and digital emergency response coordination, the Safe City Command Centre provides law enforcement with real-time intelligence, proactive threat detection, and seamless inter-agency collaboration, enabling a more effective and responsive approach to public safety.

CP Bello Yahaya expressed keen interest in leveraging ICT solutions to strengthen policing efforts, emphasizing the importance of technology in modern crime prevention, data-driven policing, and crisis management.

He highlighted the need for enhanced digital transformation, improved connectivity, and expanded training programs to equip officers with the necessary skills to operate effectively in a digitally evolving security landscape.

Galaxy Backbone reaffirmed its commitment to supporting law enforcement agencies, government institutions, and critical stakeholders through innovative ICT solutions, secure cloud infrastructure, and digital training programs.

By providing access to high-speed connectivity, cybersecurity frameworks, and cloud-powered command centres, GBB continues to drive the adoption of smart policing solutions and enhanced security management across Nigeria.

The visit concluded with a shared commitment to deepening engagement between Galaxy Backbone and the Gombe State Police Command, focusing on optimizing digital transformation initiatives for law enforcement efficiency, expanding the scope of ICT-driven surveillance and emergency response systems and strengthening training programs for officers to enhance digital skills and operational effectiveness.

As Nigeria’s leading digital infrastructure provider, Galaxy Backbone continues to shape the future of public safety, digital governance, and cybersecurity, ensuring that law enforcement agencies have access to the best tools to protect lives and property.

 


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Salesforce Collaborates with Tech Leaders to Launch AI Energy Score for Model Efficiency

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Salesforce, in collaboration with Hugging Face, Cohere, and Carnegie Mellon University, announced the release of the AI Energy Score, a first-of-its-kind benchmarking tool that lets AI developers and users evaluate, identify, and compare the energy consumption of AI models.

Salesforce also announced it will be the first AI model developer to disclose the energy efficiency data of its proprietary models under the new framework.

The AI Energy Score aims to address the lack of transparency about the environmental impact of AI models. Similar to how ENERGY STAR transformed energy efficiency standards for appliances and electronics, this initiative establishes a clear, trusted benchmark for AI model sustainability.

“Reducing AI energy consumption lowers operational costs, optimises infrastructure, and enhances long-term sustainability and profitability. We are proud to work with industry leaders to build a more transparent AI ecosystem,” says Linda Saunders, Salesforce Country Manager and Senior Director of Solution Engineering for Africa.

The AI Energy Score will debut at the AI Action Summit, where leaders from over 100 countries, the private sector, and civil society will convene to harness AI for good. By enhancing transparency, the score can drive market preference for efficient models and incentivise sustainable AI development. Recognised by the French Government and the Paris Peace Forum for its transformative potential, the AI Energy Score features:

  • Standardised Energy Ratings: A standardised framework for measuring and comparing AI model energy efficiency.

  • Public Leaderboard: A comprehensive leaderboard that features scores for 10 common AI tasks — such as text generation, image generation, and summarisation — performed by 166 models, including Salesforce’s SFR-Embedding, xLAM, and SF-TextBase.

  • Benchmarking Portal: A platform where AI developers can submit their open or proprietary AI models to be evaluated and added to the leaderboard. Open models can be automatically tested, while closed models can be evaluated through a secured testing sandbox.

  • Recognisable Energy Use Label: A new 1- to 5-star label that rates AI model energy use, with five stars indicating the highest efficiency. This helps developers and users easily identify and choose more sustainable models. Once rated, AI developers can generate standardised labels to share their models’ energy score, with built-in guidance on the proper label display for visibility and impact.

Last year, the company introduced Agentforce, the agentic layer of the Salesforce Platform for deploying autonomous AI agents across any business function. Agentforce offers tools to build and customise agents, as well as a library of ready-to-use skills for sales, service, marketing, commerce, Tableau, Slack, and more.


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