MTN says it has reached an agreement with IHS Holding for the transfer of its towers business, comprising of up to 9,151 of MTN’s mobile network towers in Nigeria.
The transaction is expected to reduce MTN Nigeria’s operating costs, drive network efficiencies and further expand MTN’s voice and data capacity, the operator said.
Under the terms of the transaction and subject to requisite regulatory approvals, the 9,151 towers will be transferred to a new company which will be owned jointly by MTN and IHS.
IHS will have full operational control of the underlying business.
The new towers company will market independent infrastructure sharing services to other mobile operators and Internet Service Providers (ISPs) in Nigeria.
The transaction is expected to close in Q4 2014.
Sifiso Dabengwa, Group President and CEO of MTN Group, said: “We are delighted to have entered into a further transfer transaction with IHS, in our largest African market. IHS’ deep knowledge and considerable experience in the sector will help drive efficiencies and enhance our network uptime, allowing us to concentrate on further raising our own service levels, improving the customer experience and ensuring we remain the number one operator in Nigeria.”
This is the ninth tower transaction for IHS and its fifth with MTN following the transactions in Cote d’Ivoire, Cameroon, Rwanda and Zambia that took place in 2012 and 2013. On completion of this transaction, IHS will manage over 20,000 towers in Africa.
As part of the deal, the new towers company has committed more than US$500 million of additional investment over four years into tower upgrades and a maintenance programme to improve quality of service and enhance the customer experience on the MTN Nigeria network.
In addition, further investments will be made into IHS’ centralised Network Operations Centre (NOC) in Nigeria to optimise operations and increase IHS’ market leading network uptimes of over 99%.
IHS said it anticipates creating a ‘considerable number’ of technical and engineering direct and indirect employment opportunities to be sourced locally in Nigeria.
Business Tech
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Thursday, September 4, 2014
FIFA planning on suspending Nigeria again
Nigeria have until Monday to restore to power Nigeria Football Federation (NFF) president Aminu Maigari, deposed in an election last week while he was detained by police in a second attempt to oust him from office since the World Cup.
FIFA said in a statement it had sent a letter to the NFF confirming that Nigeria will be suspended "should there still be persons claiming to have been elected to NFF positions on 26 August 2014 and occupying their offices on Monday, 8 September 2014 at 08.00 (Central European Time)".
NFF elections last week saw Chris Giwa take over as president but his election has been widely disputed within Nigerian football and rejected by FIFA.
Maigari was arrested at the same time as the poll, in an unsubtle attempt to keep him from the vote, and held by police but not questioned and later released.
The involvement of security forces led Nigerian media to speculate the giant west African country’s government were seeking to unseat Maigari but wary of FIFA’s policy of no government interference in the running of its member associations.
Maigari had also been held for a brief period after arriving home from Brazil in July following Nigeria's elimination in the World Cup last 16 when a first bid to sweep him from power was made by rivals.
A court order was obtained by a rival faction ordering an immediate election in July but world football's governing body rejected this too, suspending Nigeria for seven days before the status quo was restored.
FIFA’s latest threat means Nigeria could be stopped from playing their scheduled Nations Cup qualifier in South Africa next Wednesday which would effectively see them out of the competition and unable to defend the title they won in 2013.
They can however go ahead with the opening Group A qualifier against Congo in Calabar on Saturday.
"Should the new deadline not be respected, the NFF will be automatically suspended until the board claiming to be elected vacates the premises of the NFF and the NFF General Secretary is able to perform his work without interference," FIFA said.
"The NFF Executive Committee as it was composed on 25 August 2014, meaning under the presidency of Aminu Maigari, should then convene as soon as possible a first extraordinary general assembly to elect the members of the electoral committee and a second extraordinary general assembly in the shortest time possible allowed by law in order to proceed with the elections of new NFF office-bearers."
Reuters
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Another Northern Nigerian town falls to Boko Haram
Nigeria's militant Islamist group Boko Haram has captured the town of Banki, which borders Cameroon, after government troops fled, residents say.
The military has not yet commented on the latest town to reportedly fall to the insurgents in recent weeks.
Fears have been raised that their main target is Maiduguri, the capital of north-eastern Borno state.
Boko Haram's "lightning territorial gains" could lead to Nigeria breaking up like Iraq, a think-thank has warned.
Last month, Boko Haram leader declared an Islamic caliphate in areas under the group's control, following a similar declaration by the Islamic State (IS) group, previously known by the acronym Isis, after it captured parts of Iraq and Syria.
"Unless swift action is taken, Nigeria could be facing a rapid takeover of a large area of its territory reminiscent of Isis's lightning advances in Iraq," the Nigeria Security Network (NSN) said in a special report released on Tuesday entitled North-East Nigeria On The Brink.
"If Maiduguri falls, it will be a symbolic and strategic victory unparalleled so far in the conflict," it said.
"A successful attack could be followed by a take over of the whole of Borno state and possibly parts of Adamawa, Yobe, and neighbouring Cameroon."
The UN refugee agency has said the fighting has forced more than 10,000 people to flee to neighbouring Cameroon and Niger in the past week, the Associated Press news agency reports.
Meanwhile, regional foreign ministers have held talks in Nigeria's capital, Abuja, to discuss the growing security threat.
Nigeria, Cameroon, Chad, Benin and Niger agreed to step up security co-operation, including intelligence-gathering, to defeat the militants, a statement issued after the meeting said.
'Hiding in bush'
Residents from Banki say that government troops abandoned their posts as the militants advanced on the small border town on Tuesday.
Most of the people remaining in the town were women and children, as many of the men had fled, one man who was hiding in the bush nearby told the BBC Hausa service.
The militants have not harmed anyone in the town, residents said.
The capture of Banki gives Boko Haram leverage as it tries to secure territory beyond north-eastern Nigeria, says BBC Nigeria analyst Jimeh Saleh.
Earlier this week, Boko Haram seized Bama, the biggest town in Borno after Maiduguri, which is about 70km (45 miles) away.
Meanwhile, Cameroon's army has said that militants crossed into Cameroonian territory on Monday night.
The militants were pushed back after a three-hour battle, it said in a statement.
About 40 militants were killed and an army corporal was seriously wounded in the fighting, it added.
Boko Haram's five-year insurgency has intensified in recent months despite the deployment of thousands of extra troops to the worst-affected areas.
The military has denied that Nigeria's territorial integrity is threatened.
But Nigerian soldiers say they do not have enough resources to curb the insurgency.
In April, the militants captured more than 200 girls from a boarding school in the town of Chibok, also in Borno state.
Countries such as China, France, the UK and US have sent military assistance to help find the girls but they have not yet been rescued.
BBC
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Video - The state of Nigerian governance and Boko Haram
The military has not yet commented on the latest town to reportedly fall to the insurgents in recent weeks.
Fears have been raised that their main target is Maiduguri, the capital of north-eastern Borno state.
Boko Haram's "lightning territorial gains" could lead to Nigeria breaking up like Iraq, a think-thank has warned.
Last month, Boko Haram leader declared an Islamic caliphate in areas under the group's control, following a similar declaration by the Islamic State (IS) group, previously known by the acronym Isis, after it captured parts of Iraq and Syria.
"Unless swift action is taken, Nigeria could be facing a rapid takeover of a large area of its territory reminiscent of Isis's lightning advances in Iraq," the Nigeria Security Network (NSN) said in a special report released on Tuesday entitled North-East Nigeria On The Brink.
"If Maiduguri falls, it will be a symbolic and strategic victory unparalleled so far in the conflict," it said.
"A successful attack could be followed by a take over of the whole of Borno state and possibly parts of Adamawa, Yobe, and neighbouring Cameroon."
The UN refugee agency has said the fighting has forced more than 10,000 people to flee to neighbouring Cameroon and Niger in the past week, the Associated Press news agency reports.
Meanwhile, regional foreign ministers have held talks in Nigeria's capital, Abuja, to discuss the growing security threat.
Nigeria, Cameroon, Chad, Benin and Niger agreed to step up security co-operation, including intelligence-gathering, to defeat the militants, a statement issued after the meeting said.
'Hiding in bush'
Residents from Banki say that government troops abandoned their posts as the militants advanced on the small border town on Tuesday.
Most of the people remaining in the town were women and children, as many of the men had fled, one man who was hiding in the bush nearby told the BBC Hausa service.
The militants have not harmed anyone in the town, residents said.
The capture of Banki gives Boko Haram leverage as it tries to secure territory beyond north-eastern Nigeria, says BBC Nigeria analyst Jimeh Saleh.
Earlier this week, Boko Haram seized Bama, the biggest town in Borno after Maiduguri, which is about 70km (45 miles) away.
Meanwhile, Cameroon's army has said that militants crossed into Cameroonian territory on Monday night.
The militants were pushed back after a three-hour battle, it said in a statement.
About 40 militants were killed and an army corporal was seriously wounded in the fighting, it added.
Boko Haram's five-year insurgency has intensified in recent months despite the deployment of thousands of extra troops to the worst-affected areas.
The military has denied that Nigeria's territorial integrity is threatened.
But Nigerian soldiers say they do not have enough resources to curb the insurgency.
In April, the militants captured more than 200 girls from a boarding school in the town of Chibok, also in Borno state.
Countries such as China, France, the UK and US have sent military assistance to help find the girls but they have not yet been rescued.
BBC
Related stories: Boko Haram seize town in Borno, Nigeria
Boko Haram claim to have established an 'Islamic state' in Northern Nigeria
Video - The state of Nigerian governance and Boko Haram
Wednesday, September 3, 2014
Nigeria falls to 127 in Global Competitive Index
Nigeria, Africa’s largest economy, continued its downward spiral on the Global Competitive Index (GCI) as the country fell seven places to 127th position this year, from the 120th position it was last year.
The development was largely attributed to what the World Economic Forum’s (WEF) Global Competitiveness Report (GCR) 2014-2015, which was made available exclusively to THISDAY by WEF, described as the country’s weakened public finances as a result of lower oil exports.
But commenting on the GCR, the Chief Executive Officer, National Competitiveness Council of Nigeria (NCCN), Mr. Chika Mordi, who spoke to THISDAY, faulted the rankings, pointing out that the report, which referred to Nigeria as Africa’s largest economy, used the old GDP figures in its calculations. This, according to him, worsened the nation’s position.
Continuing, the GCR pointed out that institutions in Nigeria remained weak with a ranking of 129 out of 144. Other factors that led to the country’s drop in the GCR were insufficiently protected property rights, high corruption, and undue influence.
In addition, it stated that the deterioration in national security in Nigeria, which was also ranked 139 out of 144, remained dire.
“Nigeria must continue to upgrade its infrastructure (134th) as well as improve its health and primary education (143rd). Furthermore, the country is not harnessing the latest technologies for productivity enhancements, as demonstrated by its low rates of ICT penetration,” it stated.
However, on the upside, the report noted that Nigeria benefits from its relatively large market size (33rd out of 144), which bears the potential for significant economies of scale; a relatively efficient labour market (40th out of 144) driven by its flexibility (20th out of 144).
Furthermore, the GCR also acknowledged the country’s solid financial market (67th out of 144), following its gradual recovery from the 2009 crisis.
“However, poor availability and affordability of finance in general and the difficulties in obtaining loans in particular (137th) remain an important bottleneck to economic growth.
“Ahead of the 2015 election cycle, it will thus be critical to keep the ongoing reform momentum to diversify the economy and increase the country’s long-term competitiveness,” it added.
Overall, Switzerland emerged top on the ranking for the sixth consecutive year, and was closely followed by Singapore, USA, Finland and Germany in that order.
However, in Africa, Mauritius which was ranked 39th in the GCI reaffirmed its position as the continent’s most competitive economy.
But South Africa, Africa’s second largest economy, also dropped to 56th on the index. South Africa, according to the report, is now the third most competitive BRICS economy after China (28th) and Russia (53rd).
African economies enjoyed mixed success in their attempts to become more competitive, according to the GCR.
Other countries ranked on the index were Lesotho (107th), Cape Verde (114th), Botswana (74th), Namibia (88th), Zambia (96th), Ghana (111th), Senegal (112th) and Swaziland (123rd).
Among the oil-exporting economies, Gabon was the highest-ranked economy (106th) followed by Cameroun (116th), Nigeria, Angola (140th) and Chad (143rd).
Among Africa’s low-income economies, the most improved was Ethiopia, which recorded the biggest leap, rising nine places to 118th.
The report stated that despite years of bold monetary policy, global economic growth remained at risk as several countries struggled to implement growth-boosting structural reforms.
Commenting on Nigeria’s ranking, Mordi said the reasons adduced for the deteriorating rankings were Boko Haram and weaker institutions, an assertion he argued was “profoundly rebutted by our Ebola containment relative to countries ranked at par or better than us”.
“Poorer public finance, again a jaundiced opinion, as our public finances are stronger with lower deficit financing, fiscal restraint, a stable currency and single digit inflation, in contrast with Ghana whose currency is in free fall and debt has skyrocketed.
“Yet Ghana has an improved score on the same parameter; and weak health and primary education where we ranked the second worst in the world. Do you truly believe that?,” he asked.
Although he acknowledged that a high GCI ranking was good to have, he said it remains an opinion.
Mordi insisted that the most important opinion was that of the investment community and the reality of the country’s position.
He explained: “In this year’s World Street Journal survey of multinational CEOs, Nigeria ranked first as an emerging market investment destination. Investors vote with their wallet and Nigeria’s FDI remains the highest in Africa.
“Finally, the WEF GCI is a lagging indicator and does not reflect the actions taken this year. We expect an improvement and better allignment with reality in subsequent years as the NCCN, which came into full operations nine months ago has taken fundamental steps and put building blocks in place to improve our competitiveness.
“The most significant of these steps is a brain trust of 56 of the brightest minds and practitioners in Nigeria. They commenced work in April and include leading businessmen, CEOs of large corporates, CEOs and partners of the top multinational consulting firms, leading academics and regulators.”
The GCR’s rankings are based on the GCI, which was introduced by WEF in 2004.
Competitiveness includes the set of institutions, policies and factors that determine the level of productivity of a country. GCI scores are calculated by drawing together country-level data in 12 categories – the “pillars of competitiveness” – to create a comprehensive picture of a country’s economic performance.
The 12 pillars are: institutions; infrastructure; macroeconomic environment; health; primary education, higher education and training; goods market efficiency; labour market efficiency; financial market development; technological readiness; market size; business sophistication; and innovation.
This Day
The development was largely attributed to what the World Economic Forum’s (WEF) Global Competitiveness Report (GCR) 2014-2015, which was made available exclusively to THISDAY by WEF, described as the country’s weakened public finances as a result of lower oil exports.
But commenting on the GCR, the Chief Executive Officer, National Competitiveness Council of Nigeria (NCCN), Mr. Chika Mordi, who spoke to THISDAY, faulted the rankings, pointing out that the report, which referred to Nigeria as Africa’s largest economy, used the old GDP figures in its calculations. This, according to him, worsened the nation’s position.
Continuing, the GCR pointed out that institutions in Nigeria remained weak with a ranking of 129 out of 144. Other factors that led to the country’s drop in the GCR were insufficiently protected property rights, high corruption, and undue influence.
In addition, it stated that the deterioration in national security in Nigeria, which was also ranked 139 out of 144, remained dire.
“Nigeria must continue to upgrade its infrastructure (134th) as well as improve its health and primary education (143rd). Furthermore, the country is not harnessing the latest technologies for productivity enhancements, as demonstrated by its low rates of ICT penetration,” it stated.
However, on the upside, the report noted that Nigeria benefits from its relatively large market size (33rd out of 144), which bears the potential for significant economies of scale; a relatively efficient labour market (40th out of 144) driven by its flexibility (20th out of 144).
Furthermore, the GCR also acknowledged the country’s solid financial market (67th out of 144), following its gradual recovery from the 2009 crisis.
“However, poor availability and affordability of finance in general and the difficulties in obtaining loans in particular (137th) remain an important bottleneck to economic growth.
“Ahead of the 2015 election cycle, it will thus be critical to keep the ongoing reform momentum to diversify the economy and increase the country’s long-term competitiveness,” it added.
Overall, Switzerland emerged top on the ranking for the sixth consecutive year, and was closely followed by Singapore, USA, Finland and Germany in that order.
However, in Africa, Mauritius which was ranked 39th in the GCI reaffirmed its position as the continent’s most competitive economy.
But South Africa, Africa’s second largest economy, also dropped to 56th on the index. South Africa, according to the report, is now the third most competitive BRICS economy after China (28th) and Russia (53rd).
African economies enjoyed mixed success in their attempts to become more competitive, according to the GCR.
Other countries ranked on the index were Lesotho (107th), Cape Verde (114th), Botswana (74th), Namibia (88th), Zambia (96th), Ghana (111th), Senegal (112th) and Swaziland (123rd).
Among the oil-exporting economies, Gabon was the highest-ranked economy (106th) followed by Cameroun (116th), Nigeria, Angola (140th) and Chad (143rd).
Among Africa’s low-income economies, the most improved was Ethiopia, which recorded the biggest leap, rising nine places to 118th.
The report stated that despite years of bold monetary policy, global economic growth remained at risk as several countries struggled to implement growth-boosting structural reforms.
Commenting on Nigeria’s ranking, Mordi said the reasons adduced for the deteriorating rankings were Boko Haram and weaker institutions, an assertion he argued was “profoundly rebutted by our Ebola containment relative to countries ranked at par or better than us”.
“Poorer public finance, again a jaundiced opinion, as our public finances are stronger with lower deficit financing, fiscal restraint, a stable currency and single digit inflation, in contrast with Ghana whose currency is in free fall and debt has skyrocketed.
“Yet Ghana has an improved score on the same parameter; and weak health and primary education where we ranked the second worst in the world. Do you truly believe that?,” he asked.
Although he acknowledged that a high GCI ranking was good to have, he said it remains an opinion.
Mordi insisted that the most important opinion was that of the investment community and the reality of the country’s position.
He explained: “In this year’s World Street Journal survey of multinational CEOs, Nigeria ranked first as an emerging market investment destination. Investors vote with their wallet and Nigeria’s FDI remains the highest in Africa.
“Finally, the WEF GCI is a lagging indicator and does not reflect the actions taken this year. We expect an improvement and better allignment with reality in subsequent years as the NCCN, which came into full operations nine months ago has taken fundamental steps and put building blocks in place to improve our competitiveness.
“The most significant of these steps is a brain trust of 56 of the brightest minds and practitioners in Nigeria. They commenced work in April and include leading businessmen, CEOs of large corporates, CEOs and partners of the top multinational consulting firms, leading academics and regulators.”
The GCR’s rankings are based on the GCI, which was introduced by WEF in 2004.
Competitiveness includes the set of institutions, policies and factors that determine the level of productivity of a country. GCI scores are calculated by drawing together country-level data in 12 categories – the “pillars of competitiveness” – to create a comprehensive picture of a country’s economic performance.
The 12 pillars are: institutions; infrastructure; macroeconomic environment; health; primary education, higher education and training; goods market efficiency; labour market efficiency; financial market development; technological readiness; market size; business sophistication; and innovation.
This Day
Tuesday, September 2, 2014
Nigeria's richest woman Folorunsho Alakija insists success can be achieved without formal education
Alakija, who is worth $2.6 billion by FORBES estimates, reportedly made the disclosure on Thursday, while addressing students at the University of Lagos during a ceremony to mark the 2014 UN International Youths Day.
“So I am 63 and I am not yet done. So what is your excuse? I never went to a University and I am proud to say so because I don’t think I have done too badly,” she said during the motivational talk.
The Nigerian businesswoman explained to the students that while a University degree is important and can significantly improve one’s prospects in life, hard work and persistence were the most crucial tools for success.
“You do not have to have a university education to be able to make it so count yourselves privileged to have that education as part of the feather in your cap,” Alakija said.
Alakija pursued secretarial studies and fashion design as a young woman in London, and then returned to Nigeria to work as a secretary in a Merchant bank. She subsequently founded Supreme Stitches, a tailoring outfit that catered to upscale clientele including Nigeria’s fashionable former first lady Maryam Babangida. In 1993, she acquired an oil prospecting license which granted her a lucrative block in Nigeria’s coastal waters. Her company, Famfa Oil, now holds a 60% stake in the oil field. She is also the founder of The Rose of Sharon Foundation, which provides support to orphans and widows.
Forbes
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