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Telcos admit revenue shortfalls amid load-shedding allegations

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2 months ago

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Nigerian telecom companies have acknowledged experiencing revenue shortfalls, amid allegations of implementing load shedding to control rising operational costs.

The operators, who denied implementing load-shedding, acknowledged that current revenue levels were insufficient to sustain network operations. Industry sources reveal that telecoms struggle to maintain network quality due to financial constraints.

This practice, often referred to as load-shedding, involves extending the coverage area of each base station to compensate for the reduced number of active masts, effectively decreasing operational costs.

According to the President of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, load-shedding might not accurately reflect the current situation.

“I am not aware if the telcos have commenced load-shedding, and I am not sure if it has been announced officially. None of the operators have made such announcements,” Emoekpere, told The PUNCH.

He emphasised that the real challenge was not operational losses but the sustainability of network services.

The ATCON president warned that operators face a mismatch between revenue and operational costs, citing that the real challenge was not just about operational losses but also the sustainability of network services.

“For instance, if a telecom company could afford to buy 3,000 litres of fuel last month but can only purchase 1,000 litres this month due to lower revenue, it may lead to reduced service levels. This is not a formal policy decision but a response to financial constraints,” he explained.

The Association of Licensed Telecom Operators of Nigeria and ATCON had previously argued in April that current tariffs were insufficient due to rising diesel prices, inflation, and currency devaluation.

They warned that without adjustments, the sustainability of the telecom sector was at risk, potentially impacting service quality and availability for consumers.

The Nigerian Communications Commission, the telecom regulator, has not approved any new tariff plans, emphasising that any adjustments must be justified and not adversely affect consumers.

The ATCON president further pointed out that although telecom companies had generated profits in the past, those profits had likely been used up, given that tariffs had not increased substantially in over a decade.

He stressed that any call for tariff increases reflected the need to address the financial pressures on the industry rather than an attempt to capitalise on past profits.

Emoekpere urged the government to take swift action if it plans to implement measures to assist telecom companies or increase tariffs.

The ATCON chair emphasised that any potential tariff hike was not meant to penalise consumers but was crucial for ensuring network sustainability.

“If telecom companies cannot cover their costs or recoup investments, their ability to provide services will be compromised,” he added.

The Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, did not respond to calls for comments on the matter.

Last week, the President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, told The PUNCH that a slight adjustment in tariffs would enable telecom operators to cope with the rising cost of imports and maintain service quality.

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Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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8 hours ago

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November 7, 2024

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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21 hours ago

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November 6, 2024

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

Published

22 hours ago

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November 6, 2024

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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