Telecom operators urge action as FX volatility threatens sector

Telecom operators have expressed alarm about the devastating impact of FX volatility on their operations, saying that without prompt government involvement to establish a more conducive economic environment, the sector faces stagnation and perhaps collapse.

Modupe Kadri, CFO of MTN Nigeria, addressed the issues businesses face as a result of restrictive pricing policies during a panel discussion titled “Navigating Business Growth in an Era of Volatility and Uncertainty” at the Nigeria Economic Summit Group’s (NESG) 30th edition on Tuesday.

He noted that telecom businesses have been unable to change pricing for more than a decade, suffocating growth and profit.

“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.

He also stated that if the telecom business fails, it will have an impact on other sectors such as financial services, logistics, and the whole economy.

Oyeyimika Adeboye, CEO of Mondelez West Africa, voiced worry about the business environment, pushing the government to go beyond rhetoric about ease of doing business and implement practical measures that allow firms to prosper.

She emphasized the necessity of local procurement of goods and raw materials for import-dependent businesses and advocated for more financial inclusion measures to support continuing operations.

Courage Obadagbony, CFO of APM Terminals West Africa Cluster, called the current FX volatility as a wake-up call for firms to improve their risk management methods and harness technology.

He also emphasized the importance of collaboration among government departments in reducing the burden of many taxes and levies, particularly import charges.