1 month ago
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MTN Nigeria and other multinational business owners have appealed to the Federal Government to create a level playing field to enable businesses to sustain their investments in the country.
This appeal was made as the Chief Financial Officer of MTN, Modupe Kadri, stated that the high inflation rate and foreign exchange fluctuations had made it difficult for the telecommunications industry to operate effectively.
They made the appeal during a panel session at the 30th Nigerian Economic Summit on Tuesday in Abuja, titled “Navigating Business Growth in a Volatile Environment.”
Speaking in his address, the CFO noted that the current situation had caused tariff increases in the petroleum and electricity industries and wondered why the same increases would not be permitted in the telecommunications industry.
He highlighted that telecom companies had not received regulatory approval to adjust their prices for over a decade, despite importing telecommunications equipment priced in foreign currency.
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.”
He stated that for the government to encourage the survival of businesses, there had to be a level playing field.
“If we are not careful, what happened to the oil industry, which led to a loss of investments, will happen to telecommunications, and the industry will come to a halt. It’s not rocket science,” he added.
He further noted that if the telecom industry falters, it will have a ripple effect on sectors such as financial services, logistics, and the broader economy.
On her part, the Chief Executive Officer of Mondelez West Africa (Cadbury), Oyeyimka Adeboye, said that the company’s production was heavily import-dependent.
Adeboye mentioned that the cost of doing business had tripled in the country in the last two years.
She stressed the need for the country to minimise imports and create access to financing for local production.
“We import glucose, but we have people who can produce it here locally. The problem is that they do not have access to finance,” she said.
Similarly, the Chief Financial Officer of APM Terminals West Africa, Courage Obadagbonyi, stated that there was a need for better coordination between government regulators.
Obadagbonyi remarked that the lack of coordination had caused confusion for businesses, adding that investments would not thrive in an environment of confusion.
The Group Managing Director of Techno Oil Limited, Mrs Nkechi Obi, expressed that businesses would only thrive with good policies.
Obi expressed optimism that with the establishment of Dangote refinery, the prices of petroleum products would stabilise somewhat.
“Techno Oil is working on its refinery to avoid shocks or uncertainties in the sector,” she said.
