MTN Nigeria and other multinational business leaders are appealing to the Federal Government to allow price adjustments in the telecommunications sector to sustain their investments in the country. Speaking at the 30th Nigerian Economic Summit in Abuja, MTN’s Chief Financial Officer, Modupe Kadri, emphasized that telecom companies have been unable to raise their prices for over ten years despite high inflation and fluctuating foreign exchange rates.
Kadri highlighted the disparity between price adjustments in sectors like petroleum and electricity, questioning why similar changes haven’t been permitted for telecoms. He explained that the inability to adjust tariffs has hindered their operations, given that much of the equipment is imported at foreign currency rates.
“For ten years now, telecom companies haven’t been allowed to increase prices,” Kadri stated. “This policy must be reviewed to ensure a level playing field, just like electricity and fuel prices reflect current economic realities.”
He also warned that failing to address these challenges could lead to a decline in the telecommunications sector, which currently contributes 16% to Nigeria’s GDP. Such a decline, Kadri noted, could have a ripple effect on industries like financial services and logistics.
Other industry leaders, including Oyeyimka Adeboye, CEO of Mondelez West Africa (Cadbury), also expressed concerns. Adeboye noted the rising cost of imports and emphasized the need for improved access to financing to boost local production. Courage Obadagbonyi of APM Terminals West Africa and Nkechi Obi of Techno Oil Limited echoed similar sentiments, stressing the importance of regulatory coordination and sound policies for business survival and growth.
