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Category: Science and Technology

  • Nigeria’s Telecom Sector Faces Declining GDP Growth Amid Forex and Inflation Pressures

    Nigeria’s Telecom Sector Faces Declining GDP Growth Amid Forex and Inflation Pressures

    By  Milcah   Tanimu

    The telecommunications sector in Nigeria is experiencing a significant downturn, with the Gross Domestic Product (GDP) growth rate for the sector steadily declining over the past year. According to the National Bureau of Statistics (NBS), the sector’s real GDP growth fell from 11.71% in Q1 2023 to 5.17% by Q2 2024.

    This decline is largely attributed to challenging economic conditions, including high inflation and the devaluation of the Naira. While telecom operators have reported revenue growth, these gains are overshadowed by broader economic issues impacting the sector.

    Forex losses have particularly hit telecom companies hard. MTN Nigeria, for example, with 79.7 million subscribers as of December 2023, reported a substantial after-tax loss of N137 billion, largely due to foreign exchange losses amounting to N740 billion ($815.79 million). Similarly, Airtel Africa, which had 50.9 million subscribers in Nigeria as of March 2024, faced a $89 million loss for the fiscal year ending March 2024, primarily due to forex challenges.

    The devaluation of the Naira has led to decreased investment in the sector, as telecom operators heavily depend on imported infrastructure for expansion. Industry experts stress that the devaluation and ongoing economic difficulties have eroded the real value of operators’ earnings, constraining growth.

    Mr. Akin Naphtal, Founder and CEO of the Africa Digital Economy Forum (ADEF), has called for urgent government intervention. He highlighted that the telecommunications sector, crucial to the digital economy, is facing long-standing issues such as high right-of-way fees and multiple taxation. He emphasized the need for stakeholders to address these challenges to rejuvenate the sector.

    Telecom operators, represented by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been advocating for a tariff increase to offset the impact of inflation and currency devaluation. They argue that the sector is the only one that has not adjusted its prices despite rising inflation, due to regulatory constraints imposed by the Nigerian Communications Commission (NCC). The NCC has indicated that a cost-based study is underway to assess the possibility of approving price increases for operators.

  • Nigeria Grants ₦47 Million to 36 Innovators for Technological Progress

    Nigeria Grants ₦47 Million to 36 Innovators for Technological Progress

    By Milcah  Tanimu

    The Federal Ministry of Innovation, Science, and Technology has awarded ₦47 million in grants to 36 notable inventors and innovators through the 2023 Presidential Standing Committee on Inventions and Innovations (PSCII). This funding underscores Nigeria’s commitment to building a knowledge-based economy and highlights the role of technological innovation in national development.

    During a ceremony held in Abuja, Minister Chief Uche Nnaji stressed that Nigeria’s future success hinges more on advancing technological capabilities than on relying solely on natural resources. Since its inception in 2005, the PSCII has provided support to over 600 innovators across Nigeria’s six geopolitical zones, demonstrating the government’s dedication to fostering creativity in the informal sector.

    Dr. Patricia Uche Chukwu, Director-General of the National Board for Technology Incubation (NBTI), celebrated the PSCII’s role in driving technological progress, which she sees as vital for economic growth and efficient production.

    Permanent Secretary Mrs. Esuabana Nko Asanye urged the grant recipients to utilize their funding effectively to advance their inventions and support Nigeria’s industrialization efforts.

  • Economic Strain: Nigerian Telecom Operators Implement Load Shedding to Manage Costs

    Economic Strain: Nigerian Telecom Operators Implement Load Shedding to Manage Costs

     

    By  Milcah   Tanimu

    In response to the ongoing economic challenges, several telecommunications operators in Nigeria have begun implementing load shedding in certain areas to manage their operating costs more effectively. This move comes as the economic situation in the country continues to intensify.

    Industry sources reveal that this strategy is designed to lower operational expenses by prioritizing high-revenue areas, which explains the variation in network service quality across different regions. Load shedding, in this context, involves reducing the number of active base stations to cut costs.

    The decision to implement load shedding coincides with discussions about the need to raise telecom tariffs to offset the effects of Naira devaluation and high inflation—an increase the government is currently reluctant to endorse. In response, Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has encouraged operators to seek innovative solutions to combat rising costs.

    An anonymous source within the industry explained that the reliance on diesel for powering base stations, coupled with rising fuel and equipment costs due to the forex crisis, has placed a significant financial burden on operators. To mitigate these costs, some operators are reducing the number of base stations, which can lead to poorer service quality in less profitable areas. For example, operators might extend the coverage radius from 1 km to 2 km between masts, effectively reducing the number of masts needed by half.

    Another industry insider confirmed that this cost-cutting approach also affects infrastructure investment, particularly delaying the expansion of 5G networks. Reduced base station coverage means that some areas experience degraded service as fewer masts handle the same volume of traffic.

    In some cases, service quality issues are also linked to high insecurity in certain regions. A telecom company official, who wished to remain anonymous, stated that while all customers are treated equally, some areas with high insecurity have experienced service disruptions due to damaged base stations and safety concerns for repair staff.

    Earlier, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), had warned that without a tariff increase, operators might have to ration network availability to manage costs. ALTON has been advocating for a tariff review, arguing that the current rates have not kept pace with inflation and rising operational costs.

    Supporting this view, economic expert Mr. Bismarck Rewane highlighted that telecom tariffs have remained unchanged since 2013, while the costs of other services have surged. He emphasized that the current tariff structure limits operators’ ability to invest in infrastructure, affecting service quality.

    In response to the infrastructure strain, the Nigerian Communications Commission (NCC) has introduced new quality of service regulations, setting stringent performance indicators and penalties for non-compliance. These include a Call Setup Success Rate (CSSR) target of 98% and fines for failure to meet this target.

    The effectiveness of these new regulations in improving service quality remains uncertain, given the current challenges faced by the industry.

  • Meta Takes Action Against Iranian Hackers Targeting WhatsApp Ahead of U.S. Elections

    Meta Takes Action Against Iranian Hackers Targeting WhatsApp Ahead of U.S. Elections

    By  Milcah  Tanimu

    Meta, the American technology giant, has taken significant steps to address an Iranian hacking group’s activities on WhatsApp, focusing on the upcoming U.S. elections.

    In a statement released Monday, Meta disclosed that it had deactivated WhatsApp accounts associated with “a small cluster of likely social engineering activity” on its platform.

    The company identified the group responsible as APT42, also known by its aliases UNC788 and Mint Sandstorm.

    The Federal Bureau of Investigation (FBI) had previously linked APT42 to a phishing campaign targeting individuals in the Trump and Harris campaigns.

    Meta’s statement highlighted that the suspicious activity on WhatsApp seemed to target individuals in the United States, the United Kingdom, Israel, Palestine, and Iran. It notably focused on diplomats and political figures, including those affiliated with both presidential candidates.

  • TymeBank to Expand into Indonesia, Strengthening Focus on Southeast Asia

    TymeBank to Expand into Indonesia, Strengthening Focus on Southeast Asia

    By  Milcah   Tanimu

    TymeBank, the South African digital banking giant, is set to launch in Indonesia by the end of 2024, marking its third foray into Southeast Asia after successful entries into the Philippines in October 2022 and Vietnam in January 2024. With customer deposits totaling R4 billion ($222 million), the bank is expanding its footprint strategically across the region.

    In Indonesia, TymeBank will initially forgo obtaining a full banking license, instead opting to introduce its lending product, Merchant Cash Advance, targeting Small and Medium Enterprises (SMEs). This approach mirrors its strategy in Vietnam, focusing on lending to small businesses before expanding its offerings.

    Coen Jonker, Tyme Group’s chair, emphasized the significant potential in the Indonesian market, particularly in the SME lending sector. “We see a massive opportunity with good profit potential in the small business lending space in Indonesia and the region,” Jonker told TechCabal. He added that this approach allows the company to establish its brand more swiftly without the immediate need for extensive banking infrastructure.

    Founded in 2018 by Coenraad Jonker and Tjaart van der Walt, TymeBank is known for catering to low-income earners and SMEs. The bank has garnered substantial backing from major investors, including Tencent, British International Investment, and Patrice Motsepe’s Africa Rainbow Capital (ARC). To date, TymeBank has raised $316 million and is currently in the process of securing a $150 million Series D funding round, with plans to list on the New York Stock Exchange by 2028.

    Indonesia, with over 60 million SMEs and limited access to traditional financing, presents a lucrative opportunity for TymeBank’s merchant lending business. In South Africa, the company has already disbursed $100 million to more than 60,000 small businesses.

    Despite a challenging start in the Philippines, where TymeBank reported a loss of 2.47 billion Philippine pesos ($42 million) in 2023, its first full year of operations, the company remains optimistic. Jonker noted that TymeBank aims to break even in the Philippines by 2025 and expects to achieve full-year profitability in South Africa by 2024.

    By October 2024, TymeBank anticipates reaching 10 million customers in South Africa and 5 million in the Philippines. “In the Philippines, we have achieved half in two years of the total customer base that we achieved in South Africa over six years, so that is an amazing growth story,” Jonker remarked.

    Looking ahead, Southeast Asia’s favorable regulatory environment and vast market potential continue to draw TymeBank’s focus. While the bank is committed to its Southeast Asian expansion, Jonker hinted at future African expansion, suggesting it is a matter of “when and not if.”

  • Chinese Scientists Create Robots with Human-Like Facial Expressions

    Chinese Scientists Create Robots with Human-Like Facial Expressions

    By   Milcah   Tanimu

    Chinese scientists have made a breakthrough by developing a robot capable of displaying highly expressive human-like facial features. The innovation, led by Professor Liu Xiaofeng from Hohai University in Jiangsu Province, represents a significant advancement in humanoid robotics.

    The development of this robot comes after Liu and his team formulated a new algorithm designed to generate intricate facial expressions on robots. According to Liu, the challenge with existing humanoid robots has been their inability to replicate the subtle and authentic facial emotions found in humans, which impacts their ability to engage users effectively.

    To address this issue, the researchers implemented a two-phase method aimed at enhancing the realism of facial expressions in autonomous robots. In the initial phase, they generated images of complex facial expressions using artificial units. The second phase involved creating a robot with multiple degrees of freedom in facial movements, enabling it to replicate these detailed expressions.

    The study revealed that the team employed a latent facial attribute space to separate expression-related cues from unrelated ones, focusing solely on the former for generating expressions. In the next phase, they developed a robot capable of embodying these refined expressions with a high degree of movement freedom.

    This advancement is expected to improve the emotional interaction between robots and humans, potentially transforming their role in various applications.

  • OpenAI Introduces Customizable GPT-4o for Businesses at $25

    OpenAI Introduces Customizable GPT-4o for Businesses at $25

    By   Milcah   Tanimu

    OpenAI has launched a new feature enabling businesses and developers to fine-tune its advanced GPT-4o model using their own data for $25, starting September 24, 2024. This enhancement allows for tailored adjustments in the model’s responses, accommodating specific needs such as tone, structure, and complex domain instructions.

    In a recent blog post, OpenAI revealed that the fine-tuning option is now fully operational. Olivier Godement, OpenAI’s API head of product, emphasized the company’s commitment to simplifying the fine-tuning process, stating, “We’ve been extremely focused on lowering the bar, the friction, the amount of work it takes to get started.”

    **Pricing and Availability**
    The fine-tuning feature is accessible to all paid plan users. To begin, users can access the fine-tuning dashboard, select the base model, and start customizing GPT-4o. Until September 23, 2024, OpenAI offers 1 million free training tokens daily per organization. Post this period, training will cost $25 per million tokens, with inference priced at $3.75 per million input tokens and $15 per million output tokens.

    For a more affordable option, the GPT-4o mini fine-tuning includes 2 million free training tokens daily during the same timeframe.

    Key Benefits of GPT-4o Fine-Tuning
    – Enhances the model’s ability to manage structure, tone, and complex instructions for specialized applications.
    – Customization typically requires only one to two hours, enabling quick deployment.
    – Includes robust safety measures and automated evaluations to prevent misuse.

    Implications
    Businesses can now fine-tune GPT-4o to create specialized tools such as customer service chatbots capable of handling detailed inquiries with minimal training data. This new feature, highly anticipated by developers, represents a significant leap in AI customization.

    Data Privacy and Safety
    OpenAI ensures that fine-tuned models remain under the user’s control, with full ownership of business data. The company has incorporated multiple safety protocols, including ongoing automated evaluations, to ensure compliance with usage policies and prevent misuse.

  • MTN Nigeria to Save ₦100 Billion Annually from Renegotiated Tower Leases

    MTN Nigeria to Save ₦100 Billion Annually from Renegotiated Tower Leases

    By Milcah Tanimu

    MTN Nigeria has renegotiated its tower lease agreements with IHS Towers, a move that is expected to save the telecoms giant approximately ₦100 billion annually. This strategic adjustment is part of MTN Nigeria’s efforts to enhance its financial performance amid the challenging business environment in Nigeria.

    The telecoms giant revealed that the revised lease terms will significantly reduce exposure to currency fluctuations and lower overall costs. This change is expected to provide a substantial boost to its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin.

    Key Highlights of the Renegotiation

    1. **Reduction in US Dollar-Indexed Component**: The revised agreements have adjusted the US dollar-indexed component of the leases to be linked with a discounted U.S. consumer price index (CPI). This shift helps lower MTN Nigeria’s exposure to the volatile naira, offering more predictable and stable cost structures.

    2. **Simplified Cost Framework**: Technology-based pricing has been removed, and payments for upgrades will now be based on tower space and power consumption rather than the technology deployed. This change simplifies the cost framework and provides better control over infrastructure expenditure.

    3. **Energy Cost Indexing**: The introduction of an energy cost component linked to diesel prices addresses the high reliance on diesel generators due to Nigeria’s unreliable power supply. This adjustment allows MTN Nigeria to manage energy expenses more effectively.

    4. **Discounts and Incentives**: The new agreements include provisions for discounts and incentives over the life of the contracts, enhancing the financial benefits for MTN Nigeria.

    Financial Impact and Outlook

    The renegotiated terms are projected to significantly boost MTN Nigeria’s EBITDA margin by 3-4 percentage points for the full year 2024, with an estimated annualized benefit of ₦100-110 billion. For FY 2024, the expected financial uplift is between ₦75-85 billion.

    These savings come at a crucial time as MTN Nigeria navigates high operational costs, currency volatility, and regulatory pressures. The company has been dealing with a negative equity position and is focused on restoring its balance sheet to health. The renegotiated leases are a vital part of this strategy, allowing savings to be redirected towards network expansion and service improvements.

    Strategic Initiatives and Industry Recovery

    The tower lease renegotiation is part of MTN Nigeria’s broader strategy to restore profitability and ensure long-term sustainability. The company emphasizes the importance of tariff increases to achieve these goals and is currently in discussions with regulatory authorities to find a balanced solution.

    The expected annual savings of ₦100 billion will bolster MTN Nigeria’s financial position and support further investments crucial for maintaining its leadership in the Nigerian telecoms market. The MTN Nigeria share price closed at ₦199.8 per share.

  • TikTok Refutes Allegations of Chinese Government Ties Amid U.S. Legal Challenges

    TikTok Refutes Allegations of Chinese Government Ties Amid U.S. Legal Challenges

    By   Milcah   Tanimu

     

    TikTok, the widely used social media platform, has firmly denied any connections to the Chinese government.

    Owned by ByteDance, a technology firm headquartered in Beijing, TikTok’s denial comes as it faces a potential business disruption in the United States. Recent legislation signed by President Joe Biden requires ByteDance to divest TikTok to an American company by January 2025 or face a ban.

    This legislation follows the U.S. Justice Department’s claim that TikTok poses a national security threat by potentially enabling the Chinese government to access American user data and influence content.

    In response, TikTok has contested these allegations in federal court, asserting that the Justice Department has misrepresented its relationship with China.

     

  • GTBank Refutes Website Cloning Allegations, Confirms Attempted Domain Breach

    GTBank Refutes Website Cloning Allegations, Confirms Attempted Domain Breach

     

    Guaranty Trust Bank (GTBank) has addressed recent media claims of a website cloning incident, confirming an attempted breach but assuring that no customer data was compromised.

    The bank reported a hacking attempt that coincided with a recent domain renewal, which caused temporary website disruption. This disruption led to public concern and speculation that the bank’s site had been cloned, risking customer data.

    In a statement issued Thursday, GTBank clarified that while there was an isolated effort to breach its domain, the website was not cloned, and customer data remained secure. The bank emphasized that it does not store customer information directly on its website, thus ruling out any data breach.

    GTBank assured its clients and stakeholders that its Information Security Experts are diligently working to restore normal operations. The statement urged the public to disregard the inaccurate media reports and reaffirmed the bank’s commitment to data protection.

    The statement read: “Recent reports have suggested that hackers have taken over and cloned our website, potentially intercepting customer data. While there was an isolated incident attempting to compromise our domain, we confirm that our website was not cloned, and no customer information was at risk. Our team is working tirelessly to restore domain settings, and we are committed to ensuring our website’s prompt return.”

    The incident, which began on the night of August 14, 2024, followed the bank’s domain renewal for an additional five years. Some reports alleged that hackers created a counterfeit version of the GTBank website to conduct phishing attacks.

    This disruption led to numerous customer complaints on social media, particularly on X (formerly Twitter), where users reported difficulties accessing online banking services. Despite these issues, GTBank’s mobile applications for Android and iOS continued to function normally.

    The incident underscores the increasing threat of cyberattacks targeting financial institutions in Nigeria, highlighting the need for robust cybersecurity measures to protect against such threats.