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Home Blog Page 4977

Key Contributors to the Quantum Leap in Nigeria’s Internet Broadband Adoption and Penetration

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Two weeks ago, I decided to visit my aunt and foster mum at her new home in Ibadan where she’s just relocated to from Lagos. The visit also enabled me to reunite with my cousin’s lovely kids, Emmanuel and Emmanuela since 4 years ago that I’d left Lagos to work in Ibadan. I was really taken aback by the rapid growth of Emmanuela who is now 6 years old and 3 years younger than her brother.

The first shocking encounter I had with the kids was how they could easily find their way around my smartphone, browsing from one YouTube kids’ channel to another via the Google voice command feature on the phone. Even when my internet data subscription finished and they could no longer continue with their engagement on YouTube, Emmanuela opted to bypass the ensuing boredom by video recording herself with the phone’s front Camera for her imaginary audience on YouTube. Hearing the six-year-old saying “make sure to subscribe to my Youtube channel and join me next week…bye bye” I knew I may be dealing with the first TV presenter at the house.

Puzzling over the tech-smartness of my cousin’s progenies, I would later discover each one of them has a Amazon’s customized tablet that their mum had got for them about a year ago to hone their skills with. I could only imagine what these Genzees would have grown into in the next couple of decades.

Nearly a decade ago, fewer than 5 percent of people in the sub-Saharan African region where Nigeria is located had access to the internet. Today, the story has changed significantly. As at December 2020, an approximately 73 percent of Nigeria’s population was said to have internet access, the country came after Kenya which was reported 85 percent of her population had access to the internet. A 2020 report by the Berlin Institute for Population and Development put the number of Nigerians with fixed-line phone connection at 550,000 out of an estimated population of 122million in the year 2000.

However, in 2004 9million phone subscribers were recorded in the country and by 2019, the number of Nigerians with a mobile contact skyrocketed to 185million. According to the Economist, mobile phone ownership in sub-Saharan Africa was already more widespread than access to electricity as early as 2016.

Since the launching of 2G, 3G and 4G networks, smart phone usage have improved significantly across the world and inspired major innovations and revolution in the telecommunication industry which trigger efforts towards achieving the 5G network system. In Nigeria, about 75 percent of website traffic was said to be generated via smart-phones. Nigeria’s smart-phones market was projected to reach 140million by 2025, making the country the largest tech hub  of sub-Saharan Africa.

On Tuesday, 9 August 2022, the Nigerian Communications Commission (NCC) which is an independent national regulatory authority of the Nigeria’s telecommunication industry reported that Nigeria’s internet broadband penetration witness an increase to 44.4 percent in June 2022 from 40.88 percent in December 2021 and the total number of broadband subscriptions grew to 84.61million from 78.04million within the same period, resulting in the broadband’s expansion by 91.70 percent within the last four years. Also, the industry’s GDP contribution rose from 9.81 percent in 2018Q4 to 12.16 percent in 2021Q4.

According to the executive Vice Chairman of NCC, Prof. Umar Danbatta, who spoke on Tuesday 9 August at the ongoing public inquiry on the five key regulatory instruments of the Commission in Abuja which will close on Friday 12 August, “the increase in the nation’s broadband penetration can, among things, be attributed to the sustained efforts by industry players in deploying fixed and mobile broadband infrastructure”.

Drawing insights from a general assessment of the industry, the following factors are also attributable to the quantum leap recorded in the Nigeria’s internet broadband:

  1. Digital Economy: Data has come to be seen as the new oil due to increasing technological innovations that have their major impacts on the economy in raw data form waiting to be analysed and then used to develop insight and make informed decisions. The global data explosion or the big data ecosystem led to the application of digital technology across different businesses and industries even outside the shores of the ICT sector.

  2. Increased ICT investment: Over the last four years, the Nigerian Information Communication Technology sector has witnessed improved investment from institutional and noninstitutional investors including international organizations who see opportunities in the Nigerian ecosystem. In October 2021, tech behemoth Google announced plans to invest $1billion in Africa over the next five years to diliver better access to fast and cheaper internet. Also, Elon musks announced his starlinks satellite internet Networks which is expected to commence operation in the country soon.

  3. Social media: The massive engagement of people on the social media for their day-to-day social relations or business transactions also has contributed to the improvement of the country’s internet broadband. Over the years the social media which requires internet connection has been seen as a trusted go-to-place to make money or overcome boredom.

  4. Covid19: The Covid19 pandemic urshered in a new approach to work. Remote working during the lockdown meant that demand for internet connection and subscription would increase to be able to access telecommuting platforms such as zoom, YouTube, WhatsApp, Microsoft meet etc. This work ethic has been maintained even after the lockdown.

  5. Government policy and Programmes: The Nigerian Government have also showcased interesting programmes and policies that attract investment and development to the sector. States like Lagos, Ekiti, Kaduna and Kwara reduce the right of way charges to encourage investments in broadband infrastructure in the states. An example is the partnership between Kaduna Government and Airtel Nigeria to deepen 3G and 4G network coverage in the state by the end of 2022 including deployment of fibre network access.

The NCC approved commencement of Fibre roll-out by licences under the Open Access Infrastructure Network (OAFIN) Licence aka Infrasco License. The NCC has been working to implement policies such as the National Broadband Plan, the National Digital Economy Policy and Strategy as well as its Strategic Management Plan and Strategic Vision Implementation Plan. Also, the NCC’s five key regulatory instruments is conceived to facilitate stakeholders’ engagement in the regulatory interventions of the commission and address emerging needs of players across all value chains of the industry.

Extension services by mobile network service providers: Leveraging creative and design thinking, some mobile network service providers are able to extend their influence beyond their traditional telecommunication services to include other services that add value to their customers and make life more meaningful. This has contributed to the revenue base of some of these platforms. For example, MTN declared a profit of N181bn for 2022Q2 as against N141.8bn made in 2021Q2; the company also recorded growth in its shares and users due to it’s internal ingenuity. MTN’s entry into the fintech space with it’s newly launched MoMo payment Service Bank recorded 4.2million registered users that use their wallets to make several millions of Naira transactions within few weeks. Also when NCC issued a directive to all mobile network providers to cut-off their subscribers that failed to link their Sim with their National Identification Number (NIN), MTN was able to assist in expediting the NIN enrollment of its users which significantly contributed to its subscribers and revenue base.

Thank you OneWattSolar

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Tekedia Institute thanks OneWattSolar for its partnership. The firm is a mobile technology platform that delivers tokenised digital services and products enabled by blockchain architecture and backed by IoT & AI. The core product is renewable energy services. It issued and completed the first green bond, worth billions of Naira,  in the history of Nigeria.

Our partnership with OneWattSolar makes it possible for our learners to do internships. That internship can be remote or on-site. This week, we have our first learner from Copenhagen, Denmark.

Tekedia Institute thanks OneWallSolar for making it possible for us to prepare the workforce of the future. Thank you.

Tekedia Institute Welcomes Be The Help Foundation

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Join me to welcome a really fascinating non-profit in Nigeria to Tekedia Institute: Be The Help Foundation. Be The Help Foundation runs an agroforestry project  and offers  hands-on training centers for agroforestry and rural development.  The team will spend weeks at Tekedia Institute, and together we will co-learn on business systems and productivity elements. Tekedia Corporate Training helps companies optimize factors of production to become more efficient, and  thrive.

The best companies attend Tekedia Institute. With our 250 world-class faculty, we exceed the expectations of clients. That is why more companies choose our Institute . Learn more here 

Tekedia Institute offers virtual (online) corporate courses and workshops to startups, SMEs, NGOs, corporations and public sector entities. On engagement, we design, develop and deliver live corporate courses and workshops on many business domains (see below) using our Faculty.  We have served senior, middle and junior management cadres of companies besides general staff, including entry level employees in our  training program. We’re here to help you execute that business mission by deepening the capabilities of your manpower. Here are some attributes:

  • Custom and Consultative Training: Our training is consultative in structure and that means that we partner with you to gain a deep understanding of existing skills gaps in your organization as we design the curriculum. With those insights, we architect a roadmap, customizing and curating our courseware and programs to help achieve your strategic business objectives.
  • Project- and Case-Components: Our training includes business cases which are drawn from diverse sectors and geographies. Our faculty are leaders in leading local and global companies, and they ensure that our courseware is fresh, relevant and applicable to real business challenges.

Buhari Reverses the Approval of Seplat-ExxonMobil Deal Following NUPRC’s Objection

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Shortly after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) nullified the approval of the Seplat-ExxonMobil deal by President Muhammadu Buhari, the president reversed his authorization.

Nigeria’s upstream petroleum regulator had said the president has no right to approve the transaction as it requires regulatory approval.

Presidential spokesperson, Garba Shehu, told Premium Times on Wednesday that the president has decided to support the position of the NUPRC in the deal.

According to him, previous confusion was because “various agencies involved in (the) decision had not coordinated well among themselves”.

When TheCable asked if there would be proper communication over the issue, he said “I have no statement to issue”.

The deal would have seen Seplat Energy Plc acquiring the entire share capital of Mobil Producing Nigeria Unlimited (MPNU), a local unit of ExxonMobil Corporation, for $1.3 billion.

The deal, which was consummated in February, became a subject of dispute on Monday after Buhari gave his approval.

The Nigerian National Petroleum Corporation (NNPC) had on July 6, obtained a court judgment to halt the deal. The NNPC’s prayer was for the court to declare that a conflict happened between the state-owned oil company and MPNU over the “interpretation of preemption rights under their Joint Operating Agreement (“JOA”) and order NNPC and MPNU to arbitration as required by the JOA.”

But Seplat Energy had argued that neither itself nor Seplat Energy Offshore Limited was a party in the lawsuit, and insisted the share purchase agreement remained valid.

In a corporate filing on Wednesday, Seplat Energy said it secured all the relevant approvals and followed due process in the acquisition of the assets.

“Seplat Energy has become aware of news and social media reports alleging impropriety in the process of securing ministerial consent to the acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited.

“Such reports are wholly untrue, and the company will pursue legal action against any parties involved in disseminating false information related to its business,” the statement reads.

It is not clear the next direction the deal will take since the presidential spokesperson didn’t provide further details in his statement. However, the NUPRC has maintained that the deal is subject to regulatory approval.

“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. As such the Commission further affirms that the status quo remains,” the regulatory body said.

TeamApt Raises $50m in Investment Round Backed by QED Investors

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TeamApt, a Nigerian fintech startup that provides business payments and banking platforms, has secured a new investment round believed to be around $50 million.

The investment was led by QED Investors, a U.S. fintech-focused venture capital firm, and backed by existing investors such as Novastar Ventures, Lightrock and Bill.

Founded in 2015, TeamApt has grown to become one of the largest operators of financial services in Nigeria. The startup in a short while processes a $100 billion annualized run-rate transaction value via its products Moniepoint and Monnify.

Per TechCrunch, Moniepoint now serves 400,000 small and medium-sized businesses across Nigeria, allowing them to access various features to manage operations: working capital, business expansion loans and business management tools such as expense management (business payments cards), accounting and bookkeeping solutions and insurance.

TeamApt’s founder and CEO Eniolorunda said this new financing round would help the company to expand its credit offerings.

Presently, TeamApt’s lending portfolio is small. The company is thus seeking to expand its lending that has been operated from the balance sheet of its microfinance bank subsidiary due to its size. The portfolio expansion will see TeamApt sticking to its multiple lending partnerships plan. Per TechCrunch, this will include banks, development finance institutions and securitization structures, to access debt facilities.

QED made TeamApt its first investment in Africa having seen the company’s growth speed and potential. For four years, TeamApt bootstrapped before it raised a venture round in 2019, but the company has recorded 300% annual growth in revenue and market cap. TechCrunch reported, citing sources, that the company generated more than $100 million in annualized revenue last year.

“From our bootstrapping days, we built products where we can see positive unit economics from day one, which has continued to be reflected in our profitability,” Eniolorunda said in an email response to TechCrunch. “This has put us in the realm of the few attractive cash-flow-positive hyper-growth companies — even as we continue growing at triple digits year-on-year, while at the same time expanding our margins.”

QED is a notable investor in the payment industry, but has stayed away from Africa for reasons believed to involve the perceived minimal growth potential of the continent. However, in the past few years, Africa has risen to the top in payment services. Nigeria leads the pack with over $800 billion in digital transactions annualized in the first four months of this year.

The West African country is breeding fintech startups that are attracting millions of dollars in investment monthly, and some of them have already attained unicorn status. Seeing the wave of fortune blowing across the payment industry, QED is expected to bet more funds in the African market henceforth.

“I am proud to bring Africa to QED and QED to Africa. I could not think of a better way to enter the continent than with our investment in TeamApt,” said Gbenga Ajayi, QED Investors partner and head of Africa, in a statement. “Tosin and his team have steadily built an impressive payment and distribution network across Nigeria over the past five years. Their strong and positive unit economics, coupled with a deep customer focus, will enable them to continue to build out an even more expansive network.”