Growth Potential in Nigerian Telecoms Sector Remains Strong—Absa

Image

Absa, a leading pan-African bank with a strong footprint across the African continent, has highlighted the opportunities for new businesses in the Nigerian telecommunications sector as well as the sector’s limitless growth potential.

The bank said the opportunities and the growth potential remain strong, in spite of the challenges in the sector, and therefore called on smart investors and entrepreneurs to tap into the opportunities and expected growth.

The banking group, which operates two licensed subsidiaries in the country, Absa Capital Markets Nigeria Limited and Absa Securities Nigeria Limited, and has deep expertise in advising and financing telecommunications, media and technology transactions across the continent, provided an interesting perspective on the sector during a media roundtable session held recently in Lagos themed The Nigeria Telecoms Sector: Exploring the Opportunities.

According to Sadiq Abu, the Chief Executive Officer, Absa Nigeria, the issues plaguing the smooth operations of telcos in the country include power deficit, vandalism of transmission infrastructure assets, theft, and multiple taxation.

He said these despite the operating challenges, the sector continues to present enormous opportunities for growth, especially in relation to broadband internet, last mile connectivity and telco infrastructure (data centres, fibre optic networks, etc). There remains a vast and growing demand for data, despite the apparent maturity of voice revenue streams.

 “The telecommunications industry is generating interest from local and foreign investors. This is because the capacity for growth in the industry is limitless. And telcos are already strategically developing useful business vehicles to take advantage of emerging opportunities in the industry,” Sadiq said.

“Meanwhile, the various challenges that are bedeviling the smooth operations of telcos provide expansive opportunities for smart entrepreneurs who possess an innovative and unerring vision of what can be done to help the players maintain cost advantage or protect critical transmission infrastructure assets through the provision of services that hedge against disruption in the supply chains.”

Also speaking during the event, Hasnen Varawalla, the co-head of Investment Banking Origination for Absa said Nigeria’s telecommunications sector is one of the largest sectors on the African continent and can serve as a strong driver for wider employment generation, financial inclusion and robust foreign direct investment (FDI).

“Two of the telcos that have listed on the Nigeria Stock Exchange (NGX) currently form 54% of the overall capital base of the NGX and as of 2021, the sector reportedly contributed around 17% of the GDP,” Varawalla said.

He explained that the sector drives financial inclusion, supports fintech activities, aids the ongoing explosion in e-Commerce services and integrates cities.  He said some of the attractive propositions in the industry include telecommunications infrastructure (data centres, fibre networks, etc), the gradual rollout of 5G technology combined with the new interest in digital work tools to meet the demands for distant work arrangements, as well as the emerging trends in fintech.

“Absa is a significant capital provider to the entire telecoms sector in Africa. Our role is not limited to providing capital though; we are amongst the most active advisers to telco/telco infrastructure companies having led and/or participated in many landmark transactions across the continent, including the GBP 595m Airtel IPO on the NGX, the sale of 9mobile to Teleology, Vodacom IPO on the Tanzania Stock Exchange, the US$ 378 IHS IPO on the NYSE, the acquisition by IHS of MTN’s tower portfolio in South Africa, amongst others.

“We continue to make available our deep telecoms sector expertise to help telcos take advantage of emerging opportunities that will fast track the timely achievement of their growth aspiration,” Varawalla said.

Adedotun Sulaiman, the Chairman of Absa Nigeria, enthused about the potential trapped in the Nigerian telecommunications sector and the implication for the economy. He promised that Absa will always be available to provide a useful perspective on key sectors of the economy.

Share
Related Stories
Image
21-December-2023

Airtel Africa Registers 150 millionth Customer

By Modupe Gbadeyanka One of the leading telecommunications firms on the continent, Airtel Africa Plc, has registered its 150 millionth customer. The chief executive of the telco, Mr Segun Ogunsanya, in a statement on Thursday, thanked the company’s subscribers and stakeholders for their continued commitment and support in helping the organisation reach this milestone. In the statement made available to Business Post, he was quoted as saying the team will not rest on its oars, noting that “as everyone knows, this is just the beginning of a journey that will see many more milestones in the coming years.” The latest

Image
12-February-2024

IXPN Activates Point of Presence at Lagos Open Access Data Centres

By Aduragbemi Omiyale The Point of Presence (PoP) at the Open Access Data Centres of the Internet Exchange Point of Nigeria (IXPN) has been activated. With the activation at the OADC facility, IXPN is now available at seven data centres, making it the only IXP accessible from all the major data centres operating in Lagos. Also, this development now makes the services of IXPN available and accessible to all network providers, providing them with affordable services and the opportunity to connect at multiple points. The company explained that the idea behind the activation of its PoP at OADC is to

Image
09-February-2024

Why Integrating Apps, Democratising Automation Should be Cornerstone of Every IT Strategy

By Linda Saunders As businesses look to transform the AI world, the demand for AI and automation tools is growing, intensifying the pressure on IT teams to deliver. This is especially true for the African continent. IT leaders across Africa are grappling to establish the governance and processes required to master the basics with widening digital skills gaps, disconnected systems, and compliance concerns among their top concerns. This is according to MuleSoft’s 2024 Connectivity Benchmark Report, which found that among 1,050 IT Leaders worldwide, 98% say they are facing challenges regarding digital transformation. 81% of IT Leaders report the persistence of

Image
12-January-2024

Yellow Card, Coinbase to Expand Access to Crypto, Digital Assets in Africa

By Adedapo Adesanya Yellow Card and Coinbase have partnered to expand and simplify access to US Dollar Coin (USDC) and digital assets in Africa. Already, Coinbase has integrated the new Yellow Card Widget, giving Coinbase Wallet customers access to Yellow Card’s extensive network of payment methods across 20 African countries in a partnership that will transform the accessibility and convenience of digital assets throughout Africa. Coinbase Wallet users will be able to easily send USDC without fees on any platform where they can share a link — including messaging apps like WhatsApp, iMessage, and Telegram, and through popular social media

More Stories
Image
09-January-2019

Buhari, Atiku Won’t Win 2019 Presidential Election—Prophet

By Modupe Gbadeyanka General Overseer of Freedom For All Nations (FANO), South Africa, Prophet Samuel Akinbodunse, has said the 2019 presidential election holding next month in Nigeria will not be won by either President Muhammadu Buhari or his main opposition, Mr Atiku Abubaker. In his prophesies for 2019, the Nigerian cleric said the February 19 poll would be surprisingly won by a candidate having an ‘S’ in his name. The FANO TV chief said God revealed to him that a youth has been chosen to become President of the most populous black nation in the world. “I am a bit

Image
10-January-2023

JUST IN: Anxiety Over Health Condition of AMAA Founder Peace Anyiam-Osigwe

By Modupe Gbadeyanka Reports just reaching Business Post have it that the Nollywood fraternity is in a confused state over the health condition of the founder of the prestigious film awards ceremony, the African Movie Academy Awards (AMMA), Ms Peace Anyiam-Osigwe. In the conflicting reports flying around, some said the respected filmmaker breathed her last on Monday at St Nicholas Hospital, Lagos, after a brief illness, while others said she is still in a coma, with friends and family members praying that she bounces back to life. An award-winning movie producer, Mr Obi Emelonye, in a post on Monday night,

Image
06-September-2020

Nigeria, South Korea to Deepen Collaboration in Shipping

By Adedapo Adesanya Nigeria and South Korea have agreed to intensify their collaboration in trade and shipping development. This followed a meeting held in Lagos between the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Bashir Jamoh, and the Consul General, Embassy of the Republic of Korea in Nigeria, Mr Kim In-Taek. Both countries have maintained good maritime and trade relations since the 1980s. But the meeting took place to expand the relationship between both countries in line with global economic dynamics. The NIMASA Director-General said after the meeting with the South Korean envoy that development of

Image
03-July-2021

NASCON Leads Gainers’ Chart as Index Crosses 38,000 Points

By Dipo Olowookere The All-Share Index (ASI) of the Nigerian Exchange (NGX) Limited again crossed the 38,000 points on Friday, days after slipping below the threshold. The market appreciated by 0.83 per cent yesterday on the back of bargain hunting in large-cap equities like Dangote Cement, Zenith Bank, Seplat and others. Business Post reports that the demand for these stocks lifted the stock market as investors are beginning to return to take shares trading at cheap prices. At the close of transactions, the industrial goods sector appreciated by 2.02 per cent, the energy index rose by 0.73 per cent, the

Image
06-December-2021

Diversifying into Foreign Assets – All You Need to Know

By FBNQuest Many Nigerian investors may think that investing in a foreign currency asset is an exotic venture for ultra-high-net-worth investors. On the contrary, diversifying into foreign currency assets may be easier than you think and offers both short-term and long-term benefits. Over the past few years, a growing number of savvy investors are putting their money into vehicles that offer exposure to low-risk dollar assets. This allows them to better manage the currency risk associated with a volatile exchange rate. They are doing this by investing in instruments like Eurobonds. Eurobonds are debt instruments that are denominated in a

Image
30-January-2019

Benedict Peters Dedicates Award to Aiteo Workers

By Dipo Olowookere Nigerian oil tycoon, Mr Benedict Peters, has dedicated an award he won on Monday, January 28, 2019 to all employees of his company, Aiteo Group. At the Nigeria International Petroleum Summit in Abuja, Mr Peters was awarded African Icon of the Year at the Foreign Investment Network (FIN) and Federal Ministry of Petroleum Resources Honorary Patrons Dinner and Awards Night. The award was an acknowledgement of his significant contribution to oil and gas development in Africa, his visionary leadership, distinguished service and transformational disruption of a sector dominated by International Oil Companies. The Aiteo Group’s 20 year

Image
21-December-2018

Fidelity Bank Customers Win N19m at 2nd Monthly/1st Bi-Monthly Draw

By Modupe Gbadeyanka On Tuesday, Fidelity Bank Plc held its 2nd monthly & bi-monthly prize presentation ceremony in its Get Alert in Millions Savings promo season 3 (GAIM 3). During the event held at the bank’s Oniru Branch in Lagos, not less than N19 million in cash prizes were given to lucky customers of the financial institution    At the ceremony attended by top executives of Fidelity Bank, customers and friends as well as representatives from the regulatory agencies and gentlemen of the press, other consolation prizes were dished out to winners. The star prize of N3 million was grabbed

Image
01-May-2019

Stock Market Loses N136bn to ‘Ruthless’ Profit-Takers

By Modupe Gbadeyanka Activities of profit takers on the floor of the Nigerian Stock Exchange (NSE) on Tuesday further left local equities bleeding by 1.22 percent. Some investors were ruthless during the trading session, which was the last for the month of April 2019. Even news of the eventual passage of the 2019 budget by the Senate yesterday could not pacify investors as they were bent on taking profit before re-investing on fundamentally sound stocks presently selling at low prices. At the close of transactions, the market capitalisation of NSE decreased by N136 billion to finish at N10.959 trillion against

Ad
Ad
Recent Stories
Image
21-February-2024

AFC to Pump $40m Into African Medical Centre of Excellence Abuja

By Adedapo Adesanya  African instrumental infrastructure solutions provider, Africa Finance Corporation (AFC), has signed an equity investment term sheet, pledging up to $40 million towards the construction of an Abuja-based hospital, the African Medical Centre of Excellence (AMCE). The quaternary-level multi-specialty medical institution developed by the African Export-Import Bank (Afreximbank) in collaboration with King’s College Hospital, London, aims to revolutionise healthcare in Africa. Hospitals across West Africa struggle with funding, lack of essential resources, and limited access in rural areas. This flagship facility in Abuja is a key part of Afreximbank’s network of healthcare facilities, actively countering brain drain, reducing

Image
21-February-2024

Oyo Reopens Shri-Balaji After Closure Over Pollution

By Aduragbemi Omiyale The industrial company sealed earlier this month nonconformity and adherence to environmental laws of Oyo State, Shri-Balaji Industries Limited, has been reopened. The facility was unsealed on Wednesday on the directive of the Commissioner for Environment and Natural Resource, Mr Abdulmojeed Mogbonjubola. The company, which engages in the recycling of waste tyres to produce Pyrolysis oil and carbon black and steel wire as by-products, was closed by the state government to protect the lives of residents of the area. A statement made available to Business Post disclosed that for it to be reopened, Shri-Balaji paid a fine

Image
21-February-2024

FG to Restructure, Recapitalise Bank of Agriculture for Better Value

By Adedapo Adesanya The federal government has revealed plans to recapitalise and restructure the Bank of Agriculture (BOA) to bolster Nigeria’s agricultural sector and achieve national food security. This was one of the core revelations made by the Vice President, Mr Kashim Shettima, during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. He said there is a central role that BOA could play in achieving national food security, citing its extensive branch network across all senatorial districts in the country. Mr Shettima, however, expressed concern about the

Image
21-February-2024

Foundation Urges Nigerians to Adopt Waste Management Hierarchy

By Aduragbemi Omiyale A recycling organisation, Turn Plastic Recycling Foundation, has encouraged Nigerians to embrace the waste management hierarchy to make the country a zero-waste society. The Project Manager for the firm, Mr Leo Nwofa, while giving a summary of the project journey in the past two years of the foundation, said to save the planet, people must adopt the system of proper waste disposal for recycling after use. The waste management hierarchy gives top priority to waste prevention, followed by reuse, recycling, recovery and finally disposal. Speaking at an event to mark the second anniversary of Turn Plastic Recycling

Image
21-February-2024

Peter Obi Fumes as CBN Hikes Cargo Clearing Rate to N1,605/$1

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has once again increased the exchange rate for customs cargo clearance by 9 per cent or N133.06 from N1,472.76/$1 to N1,605.82/$1. The new rate, which has already been reflected on the Nigeria Customs Service (NCS) portal, will further dampen the hope of importers, and trigger an increase in the price of imported products like food, fuel, spare parts, and phones, among others. The CBN had recently reduced the exchange rate from N1,515.48/$1 to N1,472.756/$1 after the market eased following some recent policy steps. This review will be the 12th since the

Image
21-February-2024

Panic at Black Market as EFCC Intensifies Clampdown on BDCs

By Dipo Olowookere There is apprehension at the black market segment of the foreign exchange (FX) market in Lagos and other cities across the country as security officials, especially from the Economic and Financial Crimes Commission (EFCC), are going after traders at the landscape. Recall that on Monday, some agents of the organisation disrupted business activities in Abuja, and on Tuesday, a similar scenario occurred at the popular Alade Market in Lagos. On Wednesday, Business Post gathered that more places were touched, with two of the Bureaux De Change (BDC) operators allegedly picked up by security operatives in the Agege

Image
21-February-2024

VFD Group Donates Books to Comenius Nursery and Primary School

By Modupe Gbadeyanka About 1,000 copies of Mama’s Sleeping Scarf by renowned Nigerian writer, Ms Chimamanda Ngozi Adichie, have been donated to the pupils of Comenius Nursery and Primary School in the Ikola area of Lagos State. The educational items were given to the elementary school by a leading proprietary investment company, VFD Group Plc, as part of its Corporate Social Responsibility (CSR) initiative. The firm, which is committed to fostering growth across diverse industries in Africa, said the books were donated to promote reading culture among children and inspire young minds to explore limitless possibilities. Mama’s Sleeping Scarf is

Image
21-February-2024

DSS Warns Organised Labour To Shun Planned Protest

By Adedapo Adesanya The Department of State Services (DSS) has urged Nigerians planning to protest next week led by organised labour to halt the idea. According to a statement from the spokesperson of the Nigerian secret police on Wednesday, Mr Peter Afunanya, there were plans by sections of the organised labour to stage protests in parts of the country over sundry economic issues between February 27 and 28, 2024 “While the Service recognises such action as the legitimate right of the labour movement, it, however, urges the body to shelve the plan in the interest of peace and public order,”

Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The

Image
21-February-2024

Rita Alakija’s Team Wins Coronation Group’s Lagos Polo Silver Cup Tourney

By Adedapo Adesanya African financial services provider, Coronation Group Limited, successfully concluded the highly anticipated Coronation Silver Cup final on Sunday, February 18 at the prestigious Lagos Polo Club in Ikoyi. The final match of this esteemed tournament was marked by the presence of distinguished guests, thrilling gameplay, and a celebration of sporting excellence. Special guests in attendance included President Tinubu’s Special Adviser on Industry, Trade and Investment, Mr John Uwajumogu, and Mr Abdul Samad Rabiu, Chairman/Founder, BUA Cement Plc. among others. The presence of these industry titans added to the excitement of the event and underscored the significance of