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Review Of Nigeria’s Telecoms Sector In 2011

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The country’s Information and Communication Technology (ICT) industry witnessed a remarkable growth last year.

Though a bunch of challenges greeted the industry, but experts in the area arrested all situations with a firm promise to keep the ship a float amidst the tempest.

From January till about July 2011, there was normal business growth in the ICT world as it affected Nigeria.  When sometime in the year under review, the Federal Government announced the compulsory registration of Subscriber Identity Module (SIM) cards, it threw many into panic due to the fear of what may befall them should they (subscribers) fail to register their SIM cards within the specified time frame (March-September) by the Federal Government.

At this point, the Federal Government had threatened through the Nigerian Communications Commission (NCC) to block all those whose SIM cards were not duly registered.

All the registration centres visited then were crowded by enthusiastic  subscribers who never wanted their lines blocked. Some heaved a sigh of relief when the Federal Government later announced September 2011 as deadline of the registration and later extended it indefinitely.

Within that time, some dealers had commenced the sales of pre-registered SIM cards to unsuspecting members of the public who did not know its, implication.

In a swiff  reaction, the Federal Government, through the NCC again, ordered the arrest and prosecution of any dealer caught selling pre-registered SIM card .

The Federal Government’s threat acted as “healing balm” as fear gripped both suspected dealers/buyers.

The NCC then, had earlier announced that its agents saddled with the exercise were ready to register all the 90 million subscribers in the country without qualms.

All the visit to the NCC’s office in Port Harcourt last year during the exercise indicated that they were not mincing words about the exercise.

Around August, Nigeria launched another satellites (Sat 2 and Satx) to the existing ones.  Many attributed it to the erudite leadership of President Goodluck Jonathan.  Players in the industry were optimistic that the lunch of Sat 2 and Sat X will go a longway  to bridge the gap between Europe and Nigeria, technology-wise. They believed that the country now had an edge over most African countries who are yet to launch their first satellite.

Here in Rivers State, an Economic Community of West African States (ECOWAS) Team that paid a courtesy call on the Special Adviser to the Governor on ICT,  Engr Goddliffe Nmekini, rated the ICT development in the state high.

According to the team, the ICT development in the state was upto international standard and at the same time, has all its takes to transform the state economically.

They also expressed hope that the ICT provision in the state will enable the younger generation to appreciate ICT earlier even as it will create employment opportunities for graduates in the state.

The month of September, brought a lot of challenges in the ICT/Telecoms industry. Around September 14, 2011, the issue of killer number (09141) ensued.

There was repeated calls warning their loved ones not to call or answer any call from any five digit number.

The atmosphere remained tensed until the Federal Government through the NCC’s spokesman, Ruben Mouka, announced that it was “unimaginable that somebody will die while receiving a call”. Before the announcement, there were rumours that about five persons have died in some parts of the country.  In the same month, Senator David Mark, hinted that the Senate has started investigations to help unearth the circumstances surrounding the collapse of the government-owned NITEL/M-Tel telecommunications.  Until the end of last year, the Senate Committee on Communications was yet to make open its findings why all the government-owned telecommunications outfits were not functional.

To add to subscribers’ joy in Rivers State, Samsung indicated interest to carry out free repairs of all its products for Rivers State residents.  The notice which came through its corporate head, marketing, Samsung Electronics West Africa, Donald Etim when he visited Rivers State Newspaper Corporation, as part of efforts of the company to celebrate its week with its teeming customers.

The Minister of Communication Technology  Mrs Omobola Johnson, tasked the Committee on National Information and Communication Technology (ICT) on the urgent need to harmonise ICT policies. Johnson informed that the call became imperative so as to quicken its records in the market structure.

She also charged investors/stakeholders to increase their commitments by investing more on ICT infrastructure.

In October, the Nigerian Communication Commission (NCC), commenced full process of number portability in the country.  It explained that the process will boost subscribers interest due to its uniqueness.

Some oil companies operating in the state like Chevron and NNPC donated ICT equipment to the state-owned University of Science and Technology in order to boost Information and Communication Technology  (ICT) development in the area.  In a similar development, about 16 students from the state who under- took post-graduate courses in information and communication technology (ICT) at Teeside University, United Kingdom returned to the state.  The Tide was told that the students will be part of ICT development in the state as they will be made to man the ICT centre in the state.

In November, the Minister of Communication Technology, Johnson, gave insight to the certification of Galaxy Backbone certification by the British Standard Institute (BSI). Johnson said it will boost public confidence in internet technology organisation.  The Galaxy Backbone was one of the smartest ICT/telecoms developments of last year as it was certified by an international organisation.          Nigerian Postal Services (NIPOST) was not left out in the development of ICT last year as it also adjusted to meet the latest ICT training needs.  The Tide learnt that NIPOST now operates e-transfer and other packages as one of its efforts to improve on its services in a bid to compete favourably in the ICT/telecoms industry.

In December, NCC said it decided not to sanction the three main telecommunication providers in the country (MTN, Glo andAirtel) when it discovered a considerable service improvement by  the service providers.  The threat to sanction the big three after poor network was experienced throughout the country in the previous month.  The NCC’s Director, Public affairs, Mr Tony Ojobo said the commission would have thrown its weight on the big three if not for the remarkable change they made in the last quarter of the year.

The Nigerian Communications Satellite Limited (Nigcomsat), also launched Nigcom Sat-1R  into orbit at the Xichang Satelite Launch Centre in South  West China.  It was a replacement of Nigcom Sat-I which was launched years ago.

The commission (NCC) established Emergency Call Centres (ECCs) in the 36 states including Abuja so as to enhance telecommunication in the country.  The ECC, as The Tide learnt, was established to also boost security networking on the parts of government as a means of check-mating insecurity in the country.

At the tail end of the year (December), there was increment in the price of recharge cards in the country. N400 MTN card was sold for N420,  while N100 and N200 cards attracted N10 each.  Subscribers were left with no choice but to purchase.

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Technology, Others Responsible For Nigeria’s Bonga Oil Operations

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The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.

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Banks Cut Borrowing From CBN By 44% 

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Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.

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Expert Highlights Technology Impact On Fintech Industry Growth 

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A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a  press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry,  noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.

Corlins Walter

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