Tech

Diesel expenditure by Nigeria’s Telcos increased by 35%, hit N429 billion in 2023– Report

Published

10 months ago

January 21, 2024

Operating costs in Nigeria’s telecommunications sector rose sharply on the back of increase in the price of diesel which rose by 34.57% to hit N429.43 billion in 2023.

Nigeria’s potential for broad economic expansion is being hampered by its poor infrastructure. Recently, foreign businesses have begun departing the nation, and producers are already grumbling about the coming year. The Nigerian Bureau of Statistics noted that the price of diesel, which many depend on due to Nigeria’s poor electricity situation, increased from N288.09 per litre in January to N1126.69 per litre in December 2023.

According to the telecoms industry report, in the year under review, companies spent about N429.43bn on fuelling base stations, an increase of 34.57% of the N319.11bn they spent in 2022. This is because diesel prices soared in 2022 and remained at an elevated level in 2023.

In 2022, “the telecommunications industry has been heavily financially impacted following Nigeria’s economic recession in 2020 and the effect of the ongoing Ukraine/Russia crisis. This has resulted in an increase in energy costs, which constitutes an appreciable 35% of ALTON’s members’ operating expenses”, the report said.

Since 2022, telecom companies have been moaning about the negative impact of growing diesel expenses on their businesses. They used it as the foundation for their 2022 tariff review proposal to the NCC. Due to the increase, the Association of Licenced Telecoms Operators of Nigeria requested permission from the NCC in 2022 to increase charges by 40%.

The Nigerian Communications Commission revealed that as of the end of 2022, the nation had 127,294 base stations and 34,862 towers, while the sector incurred operational expenditures of N2.09 trillion in 2022, with diesel accounting for a significant portion of these costs.

In a plea to the House of Representatives, the telcos have bemoaned the ways in which their businesses are being adversely affected by factors such as depreciating currency, persistent challenges in obtaining foreign exchange at a reasonable price, escalated energy expenses, growing costs associated with protecting telecom infrastructure and field staff against escalating insecurity, and more.

The telcos said, “Notwithstanding the foregoing, the pricing regulatory framework has not been reviewed to account for changes in macroeconomic conditions and reflect the current cost profile of operators. As such, ALTON’s members are unable to price services at a sustainable rate”.

Related Topics:Featured Nigeria Telco Telcom operators

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Tech

Bolt invests $107m in Nigeria to boost safety standards

Published

1 day ago

November 14, 2024

Isaac Dachen

Ride-hailing platform, Bolt, has announced an investment of $107 million in its bid to boost safety and service quality in Nigeria’s ride-hailing sector, with a special technology enhancing safety standards for both drivers and passengers.

Lola Masha, Bolt’s Regional Manager for North and West Africa, who made the announcement in a statement, said the “investment will fund new safety technologies, accident prevention measures, customer support upgrades, and public safety awareness campaigns, underscoring Bolt’s commitment to providing a secure and reliable platform.”

She revealed that as part of its quality check, the company had removed more than 5,000 drivers from its platform in 2023 so as to cleanup its database cleanup effort and will continue to implementing a driver score system to maintain quality standards.

“The driver score evaluates performance by monitoring how frequently drivers accept ride requests, successfully complete trips, and respond to passenger feedback. Essentially, it rates drivers based on their performance over their last 100 trips,” she noted.

Masha emphasized that the move came as a result of complains by the Amalgamated Union of App-based Transporters of Nigeria (AUTON) which raised concerns about the potential downsides experienced by users and the psychological stress on drivers, which could negatively affect their performance.

According to her, among the upcoming features are a four-digit trip pickup code and a trip counter, both aimed at making rides more secure and dependable for all users.

Tech

Egyptian VC Flat6Labs partners ITIDA to launch programme for tech startups

Published

3 days ago

November 12, 2024

Isaac Dachen

Egyptian Venture Capital firm, Flat6Labs, has partnered with Egypt’s Information Technology Industry Development Agency (ITIDA) to launch an InvestIT programme which will offer tech startups in the country, particularly at the seed or pre-Series A stages, access to consultancy, tools, and investor connections to help them scale operations and enhance global competitiveness.

The programme, according to Egypt’s Minister of Communications and Information Technology, Dr Amr Talaat, will be run by the Technology Innovation and Entrepreneurship Center (TIEC), a subsidiary of ITIDA, and will support startups across various governorates, encouraging innovation and growth in Egypt’s digital economy.

“Through two phases, it will prepare startups for investment with tailored training sessions and workshops, followed by connecting them with local and international investors,” Talaat said in a statement.

“The Egyptian government remains steadfast in its dedication to cultivating a thriving tech startup ecosystem. We are rolling out diverse initiatives to equip entrepreneurs with essential skills, attract global incubators, and facilitate connections between startups and investors.

“By establishing Digital Egypt innovation hubs nationwide, we empower innovators to transform their ideas into successful ventures.

“Alongside this, we are streamlining processes and investing in advanced digital infrastructure, positioning Egypt among the top three countries in the Middle East and Africa for tech startup investments,” the Minister said.

Flat6Labs founder and chairman Hany El Sonbaty, who also spoke on the initiative, said the launch of the InvestIT programme has further expanded his company’s support for Egyptian entrepreneurs.

“This programme is not just about preparing startups for investment; it’s about equipping them with the tools and connections to scale their impact.

“Through our collaboration with ITIDA and TIEC, we’re committed to building a strong, vibrant ecosystem where startups can make a real impact on the tech landscape in Egypt,” he said.

The programme, he said, will support 12 startups over six-to-eight months with each startup receiving tailored consultancy services to enhance their investment readiness and assist with setting up data rooms and preparing for investor engagements.