Forex volatility threatening growth in telecom sector- operators

…task government on pricing policy

Telecom operators have raised concerns over the crippling effects of forex volatility on their operations, warning that without swift government intervention to create a more supportive business environment, the sector risks stagnation and potential collapse.

During a panel discussion titled “Navigating Business Growth in an Era of Volatility and Uncertainty” at the 30th edition of the Nigeria Economic Summit Group (NESG) on Tuesday, Modupe Kadri, CFO of MTN Nigeria, highlighted the challenges businesses face due to restrictive pricing policies.

He explained that telecom companies have been unable to adjust prices for over a decade, stifling growth and profitability.

“For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation is not giving us 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,” Kadri said.

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He further noted that if the telecom industry falters, it will have a ripple effect on sectors like financial services, logistics, and the broader economy.

Oyeyimika Adeboye, CEO of Mondelez West Africa, expressed concerns over the business environment, urging the government to move beyond rhetoric on the ease of doing business and create tangible reforms that enable businesses to thrive.

She stressed on the importance of local sourcing of ingredients and raw materials for import-dependent companies and called for greater efforts towards financial inclusion to support continued operations.

Courage Obadagbony, CFO of APM Terminals West Africa Cluster, described the ongoing forex volatility as a wake-up call for businesses to enhance risk management strategies and leverage technology.

He also stressed on the need for collaboration among government agencies to reduce the burden of multiple taxes and levies, particularly on import duties.