MTN Nigeria has 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 Modupe Kadri, the Chief Financial Officer of MTN, stated that the high inflation rate and foreign exchange fluctuations had made it difficult for the telecommunications industry to operate effectively.
The appeal was made during a panel session at the 30th Nigerian Economic Summit on the 15th of October, in Abuja, titled “Navigating Business Growth in a Volatile Environment.”
Kadri 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 further explained that for ten years telecom companies had not received regulatory approval to adjust their prices for over a decade, despite importing telecommunications equipment priced in foreign currency.
“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”, Kadri added.
In addition, Kadri 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 warned that if the telecom industry falters, it will have a ripple effect on sectors such as financial services, logistics, and the broader economy.
