* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Tuesday, June 3, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Salem’s Harborwalk Garden Cultivates Community with Entertainment, Food, and Events – 105.7 WROR

    Discover the Vibrant Community Spirit at Salem’s Harborwalk Garden: A Hub for Entertainment, Food, and Fun!

    Entertainment-Focused Narrative and Culture Change Practice – New America

    Transforming Culture Through Engaging Entertainment Narratives

    Rising stars: Young classical musicians surging on social media – Yahoo

    Meet the Next Generation of Classical Music Sensations Making Waves on Social Media!

    Devin Harjes Dies: ‘Manifest’ & ‘Boardwalk Empire’ Actor Was 41 – WyomingNews.com

    Tragic Loss: Devin Harjes, Star of ‘Manifest’ and ‘Boardwalk Empire,’ Passes Away at 41

    Why Starz Entertainment Stock Soared Today – The Motley Fool

    Unpacking the Surge: What Fueled Starz Entertainment’s Stock Explosion Today!

    Unveiling the Enigmatic: First Looks at Destruction and Puck in ‘The Sandman

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    AI for lawyers: Win back your time using technology – nationaljurist.com

    Reclaim Your Time: How AI is Transforming the Legal Profession

    Prosecutors accuse men of exporting U.S. military technology to China – Milwaukee Journal Sentinel

    Men Charged with Illegally Exporting U.S. Military Technology to China

    ROLAND’S NEW WIRELESS TRIGGER TECHNOLOGY, PORTER & DAVIES ON TOUR, NEW 64 AUDIO ASPIRE UNIVERSAL IEM MODELS, WAVES FREE PLUGIN PACK – Modern Drummer Magazine

    ROLAND’S NEW WIRELESS TRIGGER TECHNOLOGY, PORTER & DAVIES ON TOUR, NEW 64 AUDIO ASPIRE UNIVERSAL IEM MODELS, WAVES FREE PLUGIN PACK – Modern Drummer Magazine

    This giant microwave may change the future of war – MIT Technology Review

    Revolutionizing Warfare: The Impact of a Game-Changing Giant Microwave

    Bajeed Pattan Joins Forbes Technology Council as Innovation Leader – PRWeb

    Bajeed Pattan Takes the Helm as Innovation Leader at Forbes Technology Council!

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Salem’s Harborwalk Garden Cultivates Community with Entertainment, Food, and Events – 105.7 WROR

    Discover the Vibrant Community Spirit at Salem’s Harborwalk Garden: A Hub for Entertainment, Food, and Fun!

    Entertainment-Focused Narrative and Culture Change Practice – New America

    Transforming Culture Through Engaging Entertainment Narratives

    Rising stars: Young classical musicians surging on social media – Yahoo

    Meet the Next Generation of Classical Music Sensations Making Waves on Social Media!

    Devin Harjes Dies: ‘Manifest’ & ‘Boardwalk Empire’ Actor Was 41 – WyomingNews.com

    Tragic Loss: Devin Harjes, Star of ‘Manifest’ and ‘Boardwalk Empire,’ Passes Away at 41

    Why Starz Entertainment Stock Soared Today – The Motley Fool

    Unpacking the Surge: What Fueled Starz Entertainment’s Stock Explosion Today!

    Unveiling the Enigmatic: First Looks at Destruction and Puck in ‘The Sandman

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

    AI for lawyers: Win back your time using technology – nationaljurist.com

    Reclaim Your Time: How AI is Transforming the Legal Profession

    Prosecutors accuse men of exporting U.S. military technology to China – Milwaukee Journal Sentinel

    Men Charged with Illegally Exporting U.S. Military Technology to China

    ROLAND’S NEW WIRELESS TRIGGER TECHNOLOGY, PORTER & DAVIES ON TOUR, NEW 64 AUDIO ASPIRE UNIVERSAL IEM MODELS, WAVES FREE PLUGIN PACK – Modern Drummer Magazine

    ROLAND’S NEW WIRELESS TRIGGER TECHNOLOGY, PORTER & DAVIES ON TOUR, NEW 64 AUDIO ASPIRE UNIVERSAL IEM MODELS, WAVES FREE PLUGIN PACK – Modern Drummer Magazine

    This giant microwave may change the future of war – MIT Technology Review

    Revolutionizing Warfare: The Impact of a Game-Changing Giant Microwave

    Bajeed Pattan Joins Forbes Technology Council as Innovation Leader – PRWeb

    Bajeed Pattan Takes the Helm as Innovation Leader at Forbes Technology Council!

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Telcos’ thirst for local banks grow as loans up 200%

May 21, 2024
in Business
Telcos’ thirst for local banks grow as loans up 200%
Share on FacebookShare on Twitter

Telecommunication and other information and communication companies significantly increased their borrowing from local banks in 2023, driven by a challenging economic climate and a devalued naira that made foreign loans expensive.

According to data from the Central Bank of Nigeria’s Deposit Money Banks’ Sectoral Distribution of Credit, these companies increased their loans by 207.12 percent to N768.54 billion as against the N250.24 billion they did in 2022, increasing their overall credit to banks by 63.56 percent to N1.98 trillion by the end of 2023.

Read also: Telcos’ liquidity squeeze puts network quality at risk

Overall, private sector credit surged from N15.09 trillion in 2023 to N44.54 trillion. According to the National Bureau of Statistics, the information and communication sector comprises the activities of telecommunications and information services, publishing, motion pictures, sound recording and music production, and broadcasting.

Of all the four sub-sectors, the telecoms segment was responsible for 84.68 percent of the sector’s GDP contributions, underscoring its significant share. This rise in local borrowing coincides with a 70.5 percent decline in foreign investment in the telecom sector, which fell from $456.83 million in 2022 to $134.75 million in 2023.

This decline in foreign investment and rise in local borrowing also occurred in the year that MTN and Airtel declared losses following the naira devaluation.

Many of these companies increased their appetite for local borrowing amid the naira’s vast depreciation. In 2023, the naira lost over 40 percent of its value following the removal of the rate cap on the naira in the foreign exchange market.

As foreign loans became more expensive, telcos’ local borrowings surged from N1.38 trillion as of April 2023 to N1.74 trillion by July 2023. Telcos’ reliance on loans has also been tied to the industry’s slowing financial performance.

Airtel recorded a loss of $89 million for its year ended March 2024, and MTN Nigeria’s loss was N137 billion for the year ended 2023. Both telcos blamed the naira devaluation, rising inflation, and worsening macroeconomic conditions in the country.

MTN (in its first quarter report for 2024) noted that it had begun reducing its exposure to dollar volatility. Aside from increasing their appetite for local loans, telcos, like MTN, also grew their thirst for commercial papers from N22.44 billion to N234.11 billion in the year.

In its 2023 financial report, MTN highlighted that its net finance costs increased by 58.1 percent to N211.1 billion due to higher borrowing costs and interest rates, excluding its net forex loss.

According to experts, telcos need to borrow regardless of economic performance because of the nature of their business.

Tony Emoekpere, the president of the Association of Telecommunications Companies of Nigeria (ATCON), explained that telcos “do not just borrow for growth, but also because of the nature of the business. There is always something to improve on with technology.”

This became more pronounced with the naira’s devaluation. Emoekpere opined that foreign exchange fluctuations fuelled the appetite for these new borrowings.

“It is a good thing that they are borrowing from banks. It is good for the economy. But there is a need to borrow at single digits, though,” he said. He emphasised that the direction bodes well for the operators who already earn in naira and are trying to reduce their exposure to foreign exchange fluctuations.

He, however, clamoured for lower interest rates for telcos. The Lagos Chamber of Commerce and Industry (LCCI) recently expressed concerns about the impact of high interest rates on businesses that need to borrow.

“The high lending rates make it challenging for businesses to access credit, especially for SMEs that are the backbone of the economy,” LCCI said.

GSMA, the global industry body for telcos, highlighted that the industry’s overall financial performance in recent years needs to be improved to support the capital-intensive nature of the business.

“Revenue in naira has stopped growing as the number of subscribers has increased. Falls in ARPUs indicate pressure on prices and reductions in average usage,” the industry body said in an industry report on Nigeria.

Despite this increase in local loans, GSMA believes that mobile service providers must still be able to generate sufficient revenue to cover their operating costs and support their level of capex over the medium term.

“If this is not realised, they are likely to cut back on either capital or operating expenditure or both. This results in a shrinking sector which leads to subscribers receiving a poorer quality of service and delays in coverage expansion,” it stressed.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Businessday.ng – https://businessday.ng/technology/article/telcos-thirst-for-local-banks-grow-as-loans-up-200/

Tags: businessTelcosThirst
Previous Post

Abuja Light Rail rehabilitation project gulps N10bn — Wike

Next Post

How visa restrictions pose threat to Single African Air Travel Market

Plan to control nonpoint sources of pollution – Washington State Department of Ecology (.gov)

Taking Charge: Strategies to Tackle Nonpoint Source Pollution in Washington State

June 3, 2025
The Uncertain and Shifting Future of Ph.D.s in Science – Undark Magazine

Navigating the Unpredictable Future of Science Ph.D.s: Challenges and Opportunities Ahead

June 3, 2025
‘Sport Science’ host John Brenkus dies after battle with depression – ABC News

‘Sport Science’ host John Brenkus dies after battle with depression – ABC News

June 3, 2025
Cost of ‘minimum retirement lifestyle’ has fallen amid lower energy prices – London Evening Standard

Affordable Retirement: How Lower Energy Prices Are Redefining Minimum Lifestyle Costs

June 3, 2025
Opinion | Poland Just Sent an Ominous Signal to the World – The New York Times

Poland’s Alarming Message to the Global Community

June 3, 2025
Report ranks Iowa as state with the worst economy – KCRG

Report ranks Iowa as state with the worst economy – KCRG

June 3, 2025
Salem’s Harborwalk Garden Cultivates Community with Entertainment, Food, and Events – 105.7 WROR

Discover the Vibrant Community Spirit at Salem’s Harborwalk Garden: A Hub for Entertainment, Food, and Fun!

June 3, 2025
18 High-Protein Breakfasts for Better Gut Health – EatingWell

Boost Your Gut Health with These 18 Delicious High-Protein Breakfasts!

June 3, 2025
Diagnosis for 6.2.25: Checking the pulse of Florida health care news and policy – Florida Politics

Diagnosis for 6.2.25: Checking the pulse of Florida health care news and policy – Florida Politics

June 3, 2025
Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

Finland Set to Lead EU Quantum Technology Defense Project – IoT World Today

June 3, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (662)
  • Economy (676)
  • Entertainment (21,582)
  • General (15,258)
  • Health (9,719)
  • Lifestyle (679)
  • News (22,149)
  • People (677)
  • Politics (685)
  • Science (15,897)
  • Sports (21,181)
  • Technology (15,663)
  • World (664)

Recent News

Plan to control nonpoint sources of pollution – Washington State Department of Ecology (.gov)

Taking Charge: Strategies to Tackle Nonpoint Source Pollution in Washington State

June 3, 2025
The Uncertain and Shifting Future of Ph.D.s in Science – Undark Magazine

Navigating the Unpredictable Future of Science Ph.D.s: Challenges and Opportunities Ahead

June 3, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version