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NCC to Penalize Starlink for Unapproved Subscription Hike

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Nigerian Communications Commission (NCC) has revealed plans to sanction Elon Musk’s Starlink for increasing its subscription fees in Nigeria without obtaining the necessary approval from the regulator.

Dr. Reuben Muoka, the NCC’s Director of Public Affairs, confirmed this, explaining that the price hike was not authorized by the Commission.

According to Muoka, Starlink’s actions are in breach of key provisions of the Nigerian Communications Act of 2003, specifically Sections 108 and 111, as well as conditions outlined in its operating license regarding pricing.

“We were surprised that the company announced price changes after submitting a request to the Commission for a price adjustment, which had yet to receive a decision,” Muoka stated.

“The unilateral decision by Starlink to increase their subscription packages is in contravention of the Act and its license conditions.”

He went on to stress that the NCC is prepared to enforce penalties against any licensee whose actions undermine the regulatory framework of the telecommunications sector.

Reports indicate that Starlink raised its subscription costs in Nigeria by 97%, hiking monthly fees from N38,000 to N75,000.

Additionally, the cost of its hardware kits for new users increased by 34%, rising from N440,000 to N590,000.

The company cited “excessive inflation” as the primary reason for these price adjustments.

Meanwhile, local telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been advocating for a review of tariffs in response to inflationary pressures.

They argue that the telecom sector is one of the few industries yet to adjust prices to cope with rising inflation and other economic challenges.

However, both the NCC and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have opposed these calls, urging operators to focus on innovative solutions to combat the impacts of inflation and increased operational costs.

Section 108 of the Nigerian Communications Act gives the NCC the authority to regulate telecom tariffs, specifying that no operator can implement charges without its approval.

Additionally, Section 111 empowers the Commission to impose fines on any operator exceeding approved tariff rates.

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Zenith Bank Posts Record Profit with 118% Revenue Surge

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Zenith Bank Plc has posted its unaudited financial results for the third quarter ending September 30, 2024, demonstrating an impressive 118% growth in revenue.

The bank’s earnings soared from N1.33 trillion in the same period last year to N2.9 trillion, a feat that underscores its resilience and leadership in Nigeria’s financial landscape despite macroeconomic challenges.

The detailed financial report, submitted to the Nigerian Exchange (NGX), revealed that the bank’s profit before tax surged by 99% year-on-year, rising from N505 billion in Q3 2023 to N1 trillion in Q3 2024. Similarly, profit after tax climbed 91%, moving from N434.2 billion to N827 billion.

Zenith Bank’s topline growth was driven by a significant increase in both interest and non-interest income.

Interest income experienced a robust 190% increase, reaching N1.95 trillion, benefiting from a high-yield environment. Non-interest income grew by 41% to N856 billion, propelled by gains in fees and commissions, which were attributed to the bank’s strong retail growth and the performance of its digital channels.

The growth in earnings per share (EPS) was equally notable, almost doubling from N13.82 in Q3 2023 to N26.34.

The bank’s balance sheet also showed substantial growth. Total assets rose by 49% to N30.4 trillion, primarily driven by a 42% increase in customer deposits, which reached N21.6 trillion.

This increase spanned corporate and retail sectors, showcasing the bank’s extensive market reach. Gross loans grew by 46% to N10.3 trillion, aligning with Zenith Bank’s dedication to supporting key sectors of the economy.

Operationally, the bank maintained a strong capital adequacy ratio of 21.9%, exceeding regulatory requirements. Return on average equity (ROAE) increased from 35.1% to 37.8%, while return on average assets (ROAA) climbed to 4.3%.

Despite a rise in the cost of funds to 4.3% due to prevailing market conditions, Zenith Bank sustained a cost-to-income ratio of 39.5%, reflective of investments in technology and strategic growth initiatives. The cost of risk remained steady at 7.3%.

Zenith Bank’s asset quality continues to be robust, with a non-performing loan (NPL) ratio of 4.5%, well within regulatory thresholds.

A coverage ratio of 198.4% emphasizes the bank’s stringent risk management and preparedness to handle market volatility.

As part of its forward-looking strategy, the bank initiated a capital raise on August 1, 2024, comprising a Rights Issue and Public Offer in response to the Central Bank of Nigeria’s (CBN) recapitalization mandate issued earlier in the year.

“The fundraising exercise was successful, reflecting strong confidence in Zenith Bank’s brand,” the bank stated. Final verification approvals from regulatory authorities are pending, but the proceeds are expected to support business expansion and strategic initiatives.

Zenith Bank has already laid foundations for further growth. In September 2024, it obtained regulatory clearance to open a branch in Paris, France.

This new location will facilitate international business operations and enhance its service offerings.

Looking ahead, Zenith Bank remains committed to sustainable value creation, guided by rigorous corporate governance and risk management standards.

With a strengthened capital base, the bank aims to extend its influence within the financial sector and continue delivering exceptional returns to its stakeholders while pursuing growth opportunities in key markets.

 

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Wema Bank Shines with 174% Profit Surge in Q3

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Wema Bank Nigeria has unveiled its unaudited Consolidated Financial Statements for the third quarter of 2024, highlighting an impressive 174% year-on-year growth in profit before tax, reaching ₦60.62 billion.

The bank’s assets saw significant expansion, with its balance sheet increasing by 38% to ₦3.084 trillion, while deposits climbed 23% to hit ₦2.292 trillion.

Loans and Advances also grew robustly, up 25% to ₦1.003 trillion, with Non-Performing Loans (NPL) recorded at 3.19%.

Driven by a strong rise in Interest Income (81%) to ₦229.11 billion and a remarkable 144% jump in Non-Interest Income to ₦59.21 billion, Gross Earnings surged 91%, totaling ₦288.32 billion.

Key performance metrics were notably strong, with the bank reporting a Return on Equity (ROAE) of 38.62%, a Pre-Tax Return on Assets (ROAA) of 2.64%, a Capital Adequacy Ratio (CAR) of 14.06%, and a Cost-to-Income ratio of 60.47%.

Commenting on these achievements, Managing Director/CEO Mr. Moruf Oseni expressed confidence in the bank’s progress despite a tough operating environment, stating, “We will sustain our growth trajectory into 2025.”

Wema Bank’s Q3 2024 results reflect its dedication to creating value for shareholders and stakeholders alike, showcasing robust growth across all key financial indicators.

Key highlights of the bank’s financial performance include:

Profit Before Tax: ₦60.62 billion, reflecting a 174% year-on-year increase.

Gross Earnings: ₦288.32 billion, up 91% year-on-year.

Total Assets: ₦3.084 trillion, an increase of 38%.

Deposits: ₦2.292 trillion, up 23%.

Loans and Advances: ₦1.003 trillion, up 25%.

Earnings Per Share: 328.1 kobo.

 

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