Telecom

NCC Inaugurates Committee To Accelerate Broadband Infrastructure Deployment

Published

5 months ago

November 6, 2022

Olushola Okunlade Writes

In a bid to give verve to the expansion of broadband services in the country, the Nigerian Communications Commission (NCC) has inaugurated an industry-wide committee to facilitate the deployment of broadband infrastructure under a project named, National Communications Backbone (NCB).

Chaired by NCC’s Director of Digital Economy, Dr. Augustine Nwaulune, with Mobile Network Operators (MNOs), Infrastructure Companies (InfraCos), and Tower Companies (TowerCos) as members, the Committee, christened the National Broadband Infrastructure Joint Committee (NBIJC), is saddled with the responsibility of supporting the drive towards the realisation of the NCB targets, as outlined in the Nigerian National Broadband Plan (NNBP) 2020-2025.

Director of Legal and Regulatory Services at NCC, Josephine Amuwa, who presided over the inauguration on behalf of the Executive Vice Chairman (EVC) of NCC, Prof. Umar Danbatta, in Abuja recently, said the emergence of the Committee was informed by the need to inject a broad-based industry approach to address challenges impeding the actualisation of broadband targets.

Danbatta said the Committee is expected to drive the targets set by the NNBP, including the deployment of 120,000 kilometer of fibre across the country; deepening of broadband penetration to 70 per cent by 2025; and connection of 60 per cent of Communication towers with fibre; among other targets, as stipulated in its approved Terms of Reference (ToR).

The EVC stated, “I appreciate your willingness and readiness to invest considerable time and talent to participate in this Committee. We appreciate that you will provide an invaluable perspective as we address gaps impeding the actualisation of the NCB and NNBP initiatives.”

“The depth and scope of experiences represented by the broad spectrum of this Committee’s membership will, no doubt, provide the Commission with much-needed insight and drive to overcome the challenges facing broadband infrastructure deployment in the country, and even exceed the current set targets.”

Following its inauguration, the Committee held its maiden meeting that discussed the frequency of meetings and other critical issues considered relevant to deliver on its ToR.

In 2019, the Southern Swamp Associated Gas Solutions project was commissioned, and the SPDC JV is planning to reduce associated gas flaring further through its Forcados Yokri gas-gathering project, of which large parts are set to be completed in 2022. Despite such efforts to reduce continuous flaring, unfortunately flaring intensity (the amount of gas flared for every tonne of oil and gas produced) at both SPDC- and SNEPCo-operated facilities increased in 2021 owing to short-term operational issues. Flaring from SPDC-operated facilities increased by around 5% in 2021 compared with 2020. The increase was primarily because of the extended outage of the gas compression system in SPDC’s shallow-water operations. The system was restored and became operational from January 2022. Flaring at SNEPCo-operated facilities rose by around 160% in 2021 compared with 2020. This was mainly because of an increase in flaring on the Bonga floating production, storage and offloading (FPSO) vessel. Repairs to a flex-joint on the Bonga FPSO’s gas export riser in the second quarter took longer than expected, in part because of weather conditions. While repairs were under way, the FPSO continued to produce oil and therefore flaring was necessary for safety reasons. The repairs were safely concluded in July 2021. Although flaring intensity levels rose in 2021, SPDC and SNEPCo over the last 10 years have almost halved the combined amount of hydrocarbons they flare from 1.5 million tonnes in 2012 to 0.8 million tonnes in 2021. This reduction is the result of a strict flaring reduction management process and both SPDC and SNEPCo will continue to work in close collaboration with joint-venture partners and the government to make progress towards ending routine flaring of associated gas. NIGERIA LNG EXPANSION UNDERWAY Global demand for LNG continues to grow as the world increasingly seeks reliable supplies of lowercarbon energy. Shell’s investment in Nigeria’s gas infrastructure for export is expected to help 6 This is according to a data provided by global research and consultancy business Wood Mackenzie. the country benefit further from revenues. Shell Gas B.V. and its partners took a final investment decision in 2020 on a new LNG processing unit – known as Train 7 -- at NLNG. The expansion is expected to create around 12,000 jobs for Nigerians during construction and stimulate growth of the local oil and gas service sector, with 55% of engineering and procurement of goods and services being sourced in-country. Train 7 is expected to ensure Nigeria’s continued place as a global player in a lower-carbon energy source. Once operational, Train 7 will add around 8 million tonnes per annum of capacity to the Bonny Island LNG facility, taking the total production to around 30 million tonnes per annum. In 2021, NLNG began awarding procurement and construction contracts. Early works started at the site. The first phase of the worker village is expected to be ready for occupancy in 2022 and the new material offloading facility ready for use by the end of 2022. NLNG’s Train 7 is expected to come onstream in the middle of the 2020s. KEY LICENCE RENEWED FOR DEEP-WATER SNEPCo has interests in four deep-water blocks in the Gulf of Guinea, two of which it operates. Today, nearly one-third of Nigeria’s deep-water oil and gas production comes from the Bonga and the nonoperated Erha fields.6 Since production began in 2005, Bonga alone has produced more than 950 million barrels of oil with the 2021 average oil production per day at 105,000 barrels. The Bonga FPSO vessel has a total production capacity of 225,000 barrels of oil per day and 150 standard cubic feet of gas export per day. In 2021, the availability of the FPSO vessel increased to 80% from 70% in 2020. In addition to Bonga, SNEPCo’s exploration activities have led to several significant discoveries of oil and gas over the last two decades, including the Bolia and Doro fields (Shell interest 55%). Nigeria Briefing Notes Helping to power Nigeria’s economy 13 In the right investment climate, SNEPCo believes that there are opportunities to expand. In 2021 the OML 118 (Bonga) production sharing contract was renewed and the lease extended for 20 years. Bonga North and Bonga South West Aparo (BSWA) oil fields are two such potential opportunities. Bonga North is a proposed tie-back project to the existing Bonga FPSO with Phase 1 comprising 14 wells. BSWA is a development of a new FPSO with Phase 1 comprising 23 wells. SUPPORTING RENEWABLE ENERGY STARTUPS Millions of Nigerians are excluded from the country’s power grid and Shell Companies in Nigeria have established and provided substantial funding for a not-for-profit, impact-investing company called All On. Operating as an independent company, All On works to bring reliable electricity – often from renewable energy sources -- to off-grid urban and rural customers. This support aims to build a solid pipeline of viable businesses that can create the scale required to address Nigeria’s access to energy gap. In December 2019, SPDC and SNEPCo made a significant additional 10-year financing commitment of $160 million in All On, bringing the total commitment to $200 million. By the end of 2021, All On had provided investment capital to over 40 renewable energy start-ups in its portfolio – an increase of more than 30% from 2020. One such company is Infibranches Technologies Limited, to which All On has committed $2 million, which is expected to enable the indigenous technology company to expand sales of solar home systems via its more than 13,000 agent banking partners across Nigeria. With the support of the Rockefeller Foundation, the All On Hub was established in 2020 to provide nonfinancial support and build the capabilities of off-grid energy entrepreneurs. In 2021, the hub supported 81 ventures – nearly double the 41 supported in 2020. Also in 2021, All On, Odyssey Energy Solutions and the Global Energy Alliance for People and Planet launched a $10 million equipment financing facility as part of the DART pilot programme in Nigeria. 7 Hydraulic flying leads support the delivery of hydraulic fluid and/or chemicals between subsea equipment. 8 Subsea trees are an assembly of valves and other components used to monitor and control the production of a subsea well. DART will combine demand pooling, aggregated purchasing of solar equipment, and access to affordable finance to unlock economies of scale for solar companies, achieve cost savings for end-users, and accelerate the growth of the renewable energy sector in Nigeria and beyond. DEVELOPING LOCAL CONTENT AND SKILLS Shell Companies in Nigeria contribute to the growth of Nigerian businesses that can provide technical and support services to the industry. This includes the manufacture of tools and technical kits, the operation of helicopter flights in the Niger Delta, and strategic partnerships between foreign and local companies to stimulate technology transfer and capacity development. While there are government-required programmes in some areas, such as the Nigerian and Community Content Strategy embedded in the Assa North/Ohaji South gas development project, Shell Companies in Nigeria deliberately seek to contract local businesses wherever possible. In 2021, Shell Companies in Nigeria awarded $800 million worth of contracts to Nigerian-registered companies. Of these, 92% were companies with at least 51% Nigerian ownership. SNEPCo has awarded major engineering and construction contracts to companies that are indigenous, have local staff, or possess domestic capabilities in the country. At present, the manufacture and rebuild of hydraulic flying leads7 (HFLs) is being carried out in-country by wholly indigenous companies. Pressure Controls Systems Nigeria Limited, another Nigerian company, continues to refurbish old subsea trees.8 Sometimes, a lack of access to capital hinders Nigerian companies from competing for and executing contracts effectively. Shell Companies in Nigeria have provided access to nearly $1.6 billion in loans to 901 Nigerian vendors under the Shell Contractor Support Fund since 2012. These loans help improve their tendering opportunities.

The Committee’s six-point ToR includes: enhancing collaboration between MNOs and InfraCos towards achieving the target of the NCB of the NNBP 2020-2025; and designing an NCB network architecture and harmonized comprehensive plan that will create a more viable business case that will attract investors, establish synergy between the MNOs and the InfraCos, and facilitate infrastructure deployment.

The Committee, in collaboration with the Commission, is also expected to organize an NCB financing workshop and invite all the major financial institutions, MNOs and InfraCos, and present the project, estimated at N800 billion, for adoption and financing.

Equally, the Committee is mandated to initiate engagements with identified sources of funding including Nigeria Sovereign Investment Authority (NSIA), Infrastructure Corporation of Nigeria (InfraCorp), Africa Development Bank (AfDB), and Central Bank of Nigeria (CBN) among others.

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Telecom

Federal Govt Announces Removal Of Excise Duty For Telecoms Services

Published

4 days ago

March 23, 2023

Business Echo Magazine

Federal Govt Announces Removal Of Excise Duty For Telecoms Services

Rashidat Olushola Okunlade Writes

The Federal Government on Tuesday announced the removal of excise duty for telecom sub-sector of Nigeria’s Digital Economy Industry in line with the recommendations of the Committee it constituted to review the applicability of the Duty to the telecom sector which is considered already overburdened with taxation and sundry levies.

Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, disclosed this on Tuesday (today) at a press briefing organised to provide updates on the status of the 5 per cent excise duty, whose applicability to the telecom sector was objected to by the Minister in August 2022, following which President Muhammadu Buhari suspended its application to the telecom sector and set up a Presidential Review Committee on Excise Duty in the Digital Economy Sector.

Pantami, who is the Chairman of the Committee, specifically set up for the purpose of reviewing the proposed excise duty in the telecom sector, said the Committee had carried out its national assignment and accordingly submitted its report to the President, justifying why the sector should be exempted.

The Minister said the Committee’s submissions can be summed up in three arguments put forward to justify why additional burden in form of taxes or any level should not be imposed on the telecom sector to prevent a reversal of the important contribution the sector is making to the growth of the Nigerian economy.

Left-Right: Jacqueline Olowolayemo, Senior Administrative Manager, Mafab Communications Ltd.; Prof Umar Danbatta, Executive Vice Chairman/Chief Executive Officer, Nigerian Communications Commission, Prof Isa Ali Ibrahim Pantami, Hon. Minister of Communications and Digital Economy; Dr. Vincent Olatunji, National Commissioner/Chief Executive Officer, Nigeria Data Protection Bureau and Anas Galadima, Senior Manager, Public Affairs, MTN Nigeria, during a press briefing by the Presidential Review Committee on Excise Duty in the Digital Economy Sector in Abuja on Tuesday March 21, 2023.

“Our justifications are based on three premises: First, is the fact that operators in the telecoms sub-sector of the digital economy industry currently pay no fewer than 41 different categories of taxes, levies, and charges; secondly, that telecoms have continued to be a major contributor to the Nigerian economy in terms of Gross Domestic Product Contribution (GDP).

“The third ground for contesting the Excise Duty in telecom sector is the fact that, despite the increase in the cost of all factors of production across sector, and naturally leading to increase in costs of products and services, telecom sector is the only sector where cost of service has been stable and in many cases continued to go down over the past years and therefore, adding more burden will destroy the sector,” the Minister said.

The Minister also informed the gathering that the President, having looked into the arguments put forward by the Committee and relying on the provision of Section 5 of the Nigerian 1999 Constitution, as amended, has therefore, exempted telecom sector from the list of sectors to pay the excise duty as stated in Finance Act of 2021 and other subsidiary legislations, all of which are not as superior as the Constitution which permits the President to grant the such waiver.

Pantami said: “I am happy to report to you that President Muhammadu Buhari, GCFR, has approved the exemption of the digital economy sector from the five percent excise duty to be paid and this is because of the strength of the argument presented to him by the Committee that additional burden on telecom sector will increase the sufferings of Nigerians and that other sectors that are not making as much contribution to the economy should be challenged to do more and pay the 5 per cent excise duty.”

The Minister assured Nigerians, who are telecom consumers, that the presidential exemption given to the telecom sector shall be sustained by the incoming administration as “the decision by the President is not about any political party or any administration but about Nigeria and welfare of Nigerian citizens.”

The Minister further noted that the Digital Economy Sector has continued to contribute significantly to the growth of the Nigerian economy, having contributed 14.07 per cent to the GDP in the first quarter of 2020; 17.79 per cent in the second quarter of 2021; and 18.44 per cent in the second quarter of 2022.

He said the sector has also increased its quarterly revenue generation for government from N51 billion to over N480 billion, representing a growth of 594 per cent; while the cost of buying data has also reduced from N1,200 in 2019 to N350 presently, despite the increase in the cost of operations, including the energy challenge that has caused mobile network operators to power base stations with over 32,000 power generating to provide seamless services to their teeming consumers.

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Telecom

Pantami Affirms Monitoring Nigeria’s Cyberspace Before, During, And After 2023 Presidential Elections

Published

1 week ago

March 16, 2023

Business Echo Magazine

Pantami Affirms Monitoring Nigeria’s Cyberspace Before, During, And After 2023 Presidential Elections

By Moninuola Sulaiman

As part of its mandate, the Federal Ministry of Communications and Digital Economy is expected to ensure adequate protection of Nigeria’s cyberspace to a level that citizens will have confidence in digital services. This mandate aligns with the goals and objectives of the National Digital Economy Policy and Strategy for a Digital Nigeria (NDEPS).

In line with this mandate and in our efforts at supporting the initiatives of securing Nigerian cyberspace, the parastatals under the supervision of the Ministry have established Cybersecurity Centres, namely, the National Information Technology (NITDA)’s Computer Emergency Readiness and Response Team (CERRT), the Nigerian Communications Commission (NCC)’s Computer Security Incident Response Team (CSIRT), and Galaxy Backbone (GBB)’s Security Operations Centre (SOC). These Centres were established between 2020 and 2022 in line with the Honourable Minister’s policy directives and have been monitoring Nigerian cyberspace for potential threats and taking appropriate actions to mitigate them, both individually and collectively as well as in collaboration with other stakeholders.

It is worth noting that in the run-up to the 2023 General Elections, threat intelligence revealed an astronomical increase in cyber threats to Nigerian cyberspace. Generally, threats to public websites and portals averaged around 1,550,000 daily. However, this skyrocketed to 6,997,277 on Presidential Election Day.

The Honourable Minister of Communications and Digital Economy, as a Professor of Cybersecurity and one that is very passionate about ensuring safe and secure cyberspace, directed all the parastatals to enhance their 24/7 monitoring of the networks and traffic for potential attacks from 24th February 2023 to 27th February 2023. Furthermore, on 24th February 2023, the Honourable Minister inaugurated the Ministerial Standing Committee on Advisory Role for the Protection of Nigerian Cyberspace and ICT Infrastructure. The Committee, chaired by the Board Chairman of NCC and with the CEOs of NCC, NITDA, and GBB as members, was charged with the following responsibilities, among others:

1. Monitoring of Telecommunication Infrastructure for the successful conduct of credible, free, fair, and transparent elections;

2. Developing and implementing plans to enhance the resilience of critical digital infrastructure against cyber threats;

3. Designing procedures and using technologies to prevent, detect, and respond to cyber-attacks, as well as developing the ability to recover from any damage that is done quickly;

4. Developing a comprehensive risk assessment, analysing the nation’s current cybersecurity capabilities, and identifying gaps that need to be addressed; and

5. Providing professional advice to the Government on the effective utilization of digital technologies in the conduct of the 2023 General Elections.

The Committee’s activity started on 24th February 2023 and ended on 28th February 2023. During this period, a series of hacking attempts were recorded, including Distributed Denial of Service (DDoS), email and IPS attacks, SSH Login Attempts, Brute force Injection attempts, Path Traversal, Detection Evasion, and Forceful Browsing. A total of 12,988,978 attacks were recorded, originating from both within and outside Nigeria. It is worth noting that the Centres successfully blocked these attacks and/or escalated them to the relevant institutions for appropriate action.

The parastatals, under the supervision of the Ministry of Communications and Digital Economy, have played a crucial role in providing the enabling environment for the successful conduct of a credible, free, fair, and transparent election. The Honourable Minister commends all stakeholders in the digital economy ecosystem for their support that resulted in this unprecedented success.

More importantly, the Honourable Minister notes that these attainments are a result of the commitment of the administration of President Muhammadu Buhari, GCFR towards ensuring Nigeria’s successful transition into the digital economy. The digital economy sector has enjoyed the continued support of the President and it is highly appreciated. He also hopes that lessons learned during the process will be put to effective use in subsequent elections.

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Telecom

Segun Ogunsanya Restates Airtel Africa’s Commitment To Providing Quality Education To African Children

Published

3 weeks ago

March 6, 2023

Business Echo Magazine

Segun Ogunsanya Restates Airtel Africa’s Commitment To Providing Quality Education To African Children

Olusola Okunlade Writes

Airtel Africa, a leading provider of telecommunications and mobile money services with a presence in 14 countries across Africa, has restated its commitment to the relentless pursuit of a better future for African children through the provision of access to digital education.

Dr. Segun Ogunsanya, CEO of Airtel Africa plc, made this commitment at the opening of a two-day conference in Nairobi, Kenya, last week where executives of Airtel Africa and the United Nations Children’s Fund (UNICEF) convened to discuss implementation of the landmark partnership across 13 out of Airtel’s 14 markets. Airtel Africa committed to investing $57m into educational programs during the five-year partnership with UNICEF.

Ogunsanya reflected on the effects of COVID-19 pandemic on education in Africa leading to school closures and charged the participants to continue to work closely with stakeholders, especially the governments and educational authorities, to ensure that children, especially vulnerable children in remote communities, are given the opportunity to learn.

He acknowledged the challenges faced in the implementation of the partnership in some of the 13 African countries and urged the governments of the affected countries to support this important initiative. As a leading telecommunications company in the region, Airtel Africa is using its unique insights to stand up for the children of Africa’s right to education and equality of opportunity. Ogunsanya reiterated Airtel Africa’s corporate purpose of transforming lives and pledged that the organisation will continue to champion the quest for bridging the digital divide and promoting financial inclusion.

Also welcoming the participants, the deputy regional director of UNICEF, Lieke van de Wiel, described the Airtel Africa/UNICEF partnership as an important collaboration of private and public sectors, aimed at putting children at the heart of their learning, and changing the narrative in education after years of loss during the Covid-19 pandemic. She commended Airtel Africa for coming on board and encouraged the participants to seize the moment by sharing experiences and exchanging ideas and learnings on how best to implement the initiative.

In 2021, Airtel Africa and UNICEF signed a landmark partnership committing to provide access to quality education for more than one million children by connecting schools to the internet and providing access to zero-rated educational platforms in 13 African countries.

Airtel Africa is the first private sector company on the continent to partner with UNICEF to support programmes focused on accelerating digital learning, with access to education as one of the key goals of Airtel Africa’s sustainability strategy.

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