Tech

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

Published

11 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

Click to comment

Tech

Kenya’s ticketing startup BuuPass partners Flexpay for flexible travel payments

Published

2 days ago

December 19, 2024

Isaac Dachen

Kenyan digital ticketing startup, BuuPass, has entered into a partnership with goal-based savings platform, Flexpay, to offer customers flexible payment plans ahead of holiday travels as well as simplify travel planning and ease the financial burden of holiday travel for Kenyans.

Co-founder and CEO at Buupass, Sonia Kabra, who unveiled the package at a press conference, said the collaboration between the two platforms will allow travellers to save for their journeys in manageable, interest-free installments over four to 12 weeks.

“Travelers can select their travel dates, book tickets, and pay a small deposit upfront, with the remaining balance spread across weekly or monthly payments,” she said.

“This approach offers a stress-free way for families and large groups to secure their tickets early, helping them avoid last-minute price hikes as fares are locked in.

“By partnering with Flexpay, we’re giving travelers the flexibility to budget for their trips in advance. This initiative aligns with our mission to make travel accessible to everyone, providing a solution that meets customers where they are financially,” said Kabra.

Also speaking at the event, Richard Machomba, CEO and founder of Flexpay, said:

“Flexpay’s mission is to empower individuals by providing accessible financial solutions that make it easier for them to achieve their financial goals.

“By partnering with BuuPass, we’re making travel more accessible and stress-free for Kenyans, especially during the holiday season when expenses can be overwhelming,” Machomba added.

Founded in 2016 by Kabra and Wyclife Omondi, BuuPass is a B2B2C mobility marketplace that enables users to search, compare, and book travel tickets via web, app, or USSD, while its SaaS platform helps bus operators manage their operations, inventory, and sales.

FlexPay, on the other hand, is an online and offline payment gateway that allows merchants to offer interest-free targeted savings to their customers in Africa.

Tech

DR Congo sues tech giant Apple over illegal mineral exploitation

Published

3 days ago

December 18, 2024

Isaac Dachen

The Democratic Republic of Congo (DRC), has filed a criminal case against the European subsidiaries of tech giant, Apple, accusing them of illegal mineral exploitation and allegedly using “blood minerals” in its supply chain.

In the suit filed on Tuesday, the DRC alleges that Apple has bought contraband supplies from the country’s conflict-ladden east and Rwanda, zones in which it allege the materials are mined illegally and then integrated into global supply chains before ending up in tech devices.

The DRC suit specifically mentioned Apple subsidiaries in France and Belgium, accusing the tech giant of using conflict minerals in its supply chain.

The DRC is a major source of tin, tantalum, and tungsten which are used in electronic devices, with some mines controlled by armed groups responsible for human rights violations.

International lawyers representing the African country’s government have accused Apple’s local subsidiaries of taking these minerals from conflict areas and laundering them through international supply chains, with one lawyer telling journalists that Belgium had a moral duty to act given its history of exploiting the country’s resources under colonial rule.

However, in its response, Apple claims it conducts supplier audits and does not directly source primary minerals.

https://www.thenews.com.pk/print/1262670-dr-congo-sues-apple-over-alleged-illegal-mineral-exploitation