Tech

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

Published

3 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

RepAir, Cella partner to launch carbon capture in Kenya

Published

1 day ago

April 27, 2024

Akanimoh Etim

Global Direct Air Capture (DAC) firm, RepAir, has entered into a partnership with carbon storage technology company, Cella, to launch a first-of-its-kind innovative Carbon Capture and Storage venture in Kenya.

In a statement on its website on Friday, RepAir said the venture will see a replication of its “cultivating partnerships” with storage firms in Europe, U.S. and Africa.

“This storage agreement will streamline the sale of high-quality carbon credits to off-takers, enabling corporations to meet evolving ESG standards, manage offsets and advance towards net zero goals,” the statement issued by RePAir CEO, Amir Amir Shiner, stated.

“Our solution sets a new standard, requiring only 600 kWh per ton of CO2 captured, marking the lowest energy consumption on the market.

“This agreement is perfectly aligned with the launch of our commercial demonstrator in 2025, empowering RepAir to offer high-quality carbon credits to our customers.

“It will see to the establishment of a storage partnership with Cella aimed at creating dedicated value chains for extracting CO2 from the atmosphere and permanently storing it underground through in-situ mineralization.

Corey Pattison, CEO, Cella, who also issued a statement on the partnership, said “by partnering with Cella at our first demonstration site, RepAir can capitalize on two critical resources: the potential for truly permanent, highly verifiable carbon storage via mineralization combined with Kenya’s abundant renewable energy sources.

“Together these resources provide a comprehensive solution for capturing and storing CO2 for off-takers. This collaboration represents an extraordinary opportunity to nurture mutual growth.”

Tech

Intel Liftoff Hackathon 2024 calls for applications from African AI startups

Published

2 days ago

April 26, 2024

Akanimoh Etim

Applications for the 2024 cohort of Intel Liftoff Hackathon has opened for African AI startups designed to bring together aspiring tech entrepreneurs, software developers, and AI enthusiasts to collaborate, innovate, and create solutions to concrete African challenges.

In its second edition, the hackathon welcomes pioneering early-stage AI startup teams from the African continent, delving into experiments with LLM technology, a statement on the website of the organiser stated.

It added that the Intel Liftoff Hackathon for African AI Startups, which will be held online on May 27-31, is themed “Hack and Connect”, and will take place in partnership with Modus Africa, University Mohamed VI Polytechnic, Morocco

Other partners include TUT Hub of Artificial Intelligence Institute of South Africa, Prosper Africa, UM6P Ventures, FAST Accelerator, Innov8 Technology Hubs, and Open Startups International.

“The hackathon will feature hands-on workshops that will allow learning of AI essentials; three days of challenges with mentors to test skills; exhibition opportunities to showcase startups and forge partnerships with industry leaders; and networking opportunities to engage with fellow startups and gain insights from domain experts in the AI ecosystem,” the statement said.

“Winners will be invited to join the Intel Liftoff for Startups programme, and receive unique mentoring sessions with ecosystem partners and marketing opportunities with blog articles,” it concluded.