MTN Nigeria’s chief financial officer, Modupe Kadri, has warned that investment in the Nigerian telecoms sector could suffer if suitable mobile tariffs are not guaranteed.
He cautioned that failure to implement appropriate pricing methods could lead to a decline in investment, mirroring the situation in the Nigerian oil industry.
Kadri’s comments come at a time when Nigerian telecom companies have been raising their calls for higher mobile charges and lobbying for measures that they hope will be favourable to them and push up their ability to invest in networks.
At the 30th Nigerian Economic Summit in Abuja, Kadri highlighted how the telecom industry’s operational efficiency has been adversely affected by escalating inflation and foreign exchange concerns.
According to him, the telecoms sector significantly relies on imported goods, jeopardising its financial stability.
Kadri pointed out that, whereas prices in the petroleum and electricity industries have increased, the telecom business has yet to receive a comparable hike.
He stressed the importance of establishing a fair regulatory framework that supports corporate sustainability, and specifically called on the government to play a role in this.
“Our operations are significantly dependent on foreign exchange,” Kadri remarked. “For consumers to receive the services they expect, it’s essential to recognise that these come at a cost.”
He added:” When people have to invest in the country and cannot monetise their investment, it cannot work. The only way this economy will thrive is if there is appropriate pricing such that investments in the sector are guaranteed.”
