Telecoms Sector at Risk of losing Investment if Appropriate Tariff is not Guaranteed – MTN

MTN Nigeria has warned that if suitable mobile tariffs are not guaranteed, investment in the Nigerian telecoms sector could suffer.

Modupe Kadri, chief financial officer, MTN Nigeria who stated this, also warned that if appropriate pricing methods are not applied, the sector may experience a fall in investment, similar to the Nigerian oil industry.

Kadri’s comments come at a time Nigerian telecom companies have been raising their calls for higher mobile charges and have been lobbying for measures that they hope will be favourable to them and push up their ability to invest in networks.

Kadri made the fresh call at a panel discussion at the 30th Nigerian Economic Summit in Abuja, where he highlighted how rising inflation and foreign exchange concerns have harmed the industry’s operational efficiency.

According to him, the telecoms sector is significantly reliant on imported goods, which jeopardises its financial stability.

Kadri pointed out that, whereas prices in the petroleum and electricity industries have already been increased, the telecom business has yet to receive a comparable hike.

He underscored the necessity of building a fair regulatory framework to help corporate sustainability and specifically requested that the government weigh in on 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 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.”