Strike pushes up mobile phone traffic� Trading drops at stock market
Our Correspondents
Telecommunications operators may reap more revenue in October as a result of the ongoing NLC strike in the country.
Our correspondents gathered that many people had to rely on their phones to keep in touch with their family members, friends, colleagues and other business associates, because of their inability to meet with them physically as a r strike.In anticipation of the increased traffic, some of the operators had to place their staff on essential duties, lodged them in hotels close to their offices, to enable them monitor and keep the networks running.
However, there are fears that the networks may find it difficult to maintain their base stations and keep Nigerians communicating if the strike continues for a long time.
According to the Chief Corporate Affairs Officer, MTN Nigeria Communications, Joke Giwa, the company had anticipated that many more people would need to make calls during to the strike. Consequently, adequate preparations were made to have recharge cards available and widely distributed.
She said the company had to take adequate measures to make sure that its subscribers were catered for.
She, however, said it was difficult to ascertain as at press time the volume of calls so far recorded by the company for the day.
An official of Glo Mobile, who craved anonymity, agreed that call traffic on the Glo network was higher on the first day of the strike, meaning more revenue for the operator.
He attributed the increase in traffic to the increase in telephone calls by subscribers.
The Head, Corporate Affairs, Vmobile Limited, Mr. Obinna Ariwodo, said it was difficult to speculate that there was a greater flow of traffic on the Vmobile network, saying that it would be better measured.
He disclosed that the company had to place staff on essential duties to enable them monitor the network.
However, activities at the stock market on Monday dropped sharply by 218.3 per cent in comparison to the market�s performance last Friday as the strike called by the Nigeria Labour Congress took its tolls on market activities.
Investors exchanged 15.12 million shares, valued at N172.1 million in 1,013 deals at the close of trading that was chiefly characterized by a sharp reduction in the number of stockbrokers in attendance. The figure marked a 218.3 per cent drop in share volume, when compared with the 33.00 million shares worth N321.7 million traded in 2,893 deals last Friday.
The All-Share Index of the Nigerian Stock Exchange also dipped by 0.13 per cent from the weekend�s closing figure of 22,846.13 to 22,829.85. The market capitalization of equities, similarly, dropped marginally by N1 billion from N1.694 trillion to N1.695 trillion.
The Banking sub-sector, perhaps, mostly bore the brunt of the low activities. Despite generating the highest level of activities, (with 11.06 million shares valued of N67.8 million traded in 444 deals), the sub-sector�s performance, nevertheless, dropped by 217.2 per cent in comparison with the 24.03 million shares worth N98.5 million exchanged in 1,157 deals last Friday.
The impact of the strike was mostly felt in the number of stocks traded. A lowly figure of 34 was recorded for trading; out of which 22 made gains, while 12 occupied the losers� chart.
Banks had closed shops against their customers in Lagos and the Federal Capital Territory, Abuja, in spite of a subsisting circular from the Central Bank of Nigeria that banks in the country should open for business during national strike.
Only a few staff of the CBN however turned up for work in casual wears.
Our correspondents, who monitored the strike in Abuja, observed that the Area 3 location of most of the banks in Abuja was devoid of the heavy vehicular and human traffic.
Banks such as First Bank of Nigeria Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Bank of the North Limited, Guaranty Trust Bank Plc, Midas Bank Limited, Guardian Express Bank and Global Bank Plc, had their offices closed.
The General Secretary of the National Union of Banks, Insurance and other Financial Institutions Employees, Mallam Mohammed Mamman, confirmed to our correspondents on phone that all banks and other financial institutions in Lagos complied with the directive not to open for business.
�We have gone around the city and have seen that no financial institution disobeyed the directive. The banks would remain close until the strike is suspended by the NLC, of which NUBIFIE is an affiliation,� he stated.
Meanwhile, the Manufacturers Association of Nigeria said that it had written a letter to President Olusegun Obasanjo to urgently call a stakeholders meeting that would put an end to nation wide strike.
According to the President, MAN, Mr. Charles Ugwuh, the association was worried over the implications that the strike would have on the economy.
Ugwuh�s statement, which was made available to our correspondents on Thursday, said, �The National Council of MAN being mindful of the threat to the economy, which the strike will have on the economy has written to President Olusegun Obasanjo, to urgently convene a stakeholders� meeting.�
In another development, the President, LCCI, Chief Olusola Faleye, in a press briefing on Thursday, urged the Federal Government to engage the NLC and the Organised Private Sector in a meeting that would end the strike.
He stressed the need for a roadmap that would salvage the downstream oil sector, stressing, that such a road map, should include a policy decision on part of the government that would immediately accelerate the setting up of private refineries, �some of which have been pencilled down for consideration and approval.�
