MTN Nigeria and other global business executives have encouraged the Federal Government to provide a fair, competitive climate in which firms may sustain their investments in the country.
The company owners complain that the government has not permitted them to raise their pricing in the previous 10 years, claiming that such policies must be revisited if they are to remain in business.
Modupe Kadri, MTN’s Chief Financial Officer, stated that current high inflation rates and currency volatility have hampered the telecoms sector’s capacity to work smoothly.
Kadri discussed the firm’s issues during a panel discussion at the 30th Nigerian Economic Summit on Tuesday in Abuja, which was entitled ‘Navigating Business Growth in a Volatile Environment.’
The CFO underlined that the present economic conditions had resulted in higher prices in the petroleum and power sectors and questioned why equivalent changes have not been approved for the telecoms industry.
He emphasized that telecom operators have not been granted regulatory clearance to change their price in more than 10 years, despite the fact that they buy telecoms equipment at foreign currency rates.
Kadri said, “For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation is not providing us with a level playing field to operate. If we are to stay in business, this policy must be reviewed, similar to how electricity and fuel prices are adjusted to reflect current economic realities.
“Our business is mainly dependent on foreign exchange, so customers need to understand that for them to receive the services they desire, it costs money.
“When people have to invest in the country and are unable to monetise their investments, it cannot work.
“The only way this economy will thrive is if there is appropriate pricing such that investments in the sector are guaranteed. The government is talking about diversifying; I’m talking about survival. What is the business case for me to invest when I’m bleeding almost to death?
“The telecommunications industry contributes 16 per cent to the GDP, and it is not something that you can mess around with.”
