The Chief Financial Officer (CFO) of MTN Nigeria, Module Kadri has stated that Nigeria’s telecommunications sector might lose investment like the oil sector if appropriate pricing is not guaranteed.
Speaking during a panel session at the 30th Nigerian Economic Summit (NES) in Abuja on Tuesday, Modupe Kadri, Chief Financial Officer (CFO) of MTN Nigeria, explained that rising inflation and foreign exchange challenges have significantly impacted the telecommunications industry’s ability to operate efficiently.
Kadri explained that the situation is particularly difficult because most of the industry’s products are imported.
He noted that tariff hikes have already occurred in the petroleum and electricity sectors and questioned why similar increases have not been permitted in the telecommunications industry.
He stated that the government must create a level playing field to support the survival of businesses.
In his words, “Our business is mainly dependent on forex, so customers need to understand that for you to get the services that you desire, it costs money.”
”When people have to invest in the country and are not able to monetise their investment, it cannot work.”
”The only way that this economy will thrive is if there is appropriate pricing such that investments in the sector are guaranteed.”
”The telecommunications industry contributes 16 per cent to the GDP, and it is not something that you mess around with.”
Players in Nigeria’s telecommunications industry have been angling for an increase in tariffs as inflation and foreign exchange woes increase the cost of operations in the business.
The sector also grapples with several other challenges, such as multiple taxation and regulations, high Right of Way (RoW) charges, inadequate power supply, and frequent vandalism of telecommunications infrastructure.
Starlink increase in subscription: Recently, Starlink Internet services increased its monthly subscription for Nigerians by as much as 97% from N38,000 to N75,000.
The company attributed the increase to excessive inflation in Nigeria.