MTN Nigeria and other multinational corporations are urging the Federal Government to establish a fair business environment, allowing them to maintain their investments in the country. Modupe Kadri, MTN’s Chief Financial Officer, emphasized that Nigeria’s high inflation rate and foreign exchange fluctuations have severely impacted the telecommunications industry’s operations ¹.
During the 30th Nigerian Economic Summit in Abuja, Kadri pointed out that the current economic situation has led to tariff increases in the petroleum and electricity sectors, questioning why the telecommunications industry is not afforded the same considerations. This appeal is crucial for the industry’s sustainability.
Key Challenges Faced by Telecommunications Industry:
– High Inflation Rate: Affects operational costs and profitability
– Foreign Exchange Fluctuations: Impacts importation of equipment and services
– Unequal Tariff Increases: Other industries, like petroleum and electricity, have received tariff increases, while telecommunications has not
The concept of a “level playing field” is not new, but its interpretation varies. It generally implies equal terms of access to and treatment in each other’s markets ¹. However, achieving this ideal is challenging due to differences in economies, resources, and regulatory environments.
To address these concerns, the government can:
– Review Regulatory Frameworks: Ensure fairness and consistency across industries
– Provide Support Mechanisms: Offer incentives or subsidies to mitigate the impact of inflation and foreign exchange fluctuations
– Foster Open Communication: Engage with stakeholders to understand industry-specific challenges and find solutions
By working together, the government and private sector can create a more favorable business environment, encouraging investment and growth in Nigeria’s telecommunications industry.
MukTv
