As businesses experience price increase across the petroleum and electricity industries, members of the telecommunications industry, have called on the government to approve a new price regime for the telecoms sector.
The Chief Financial Officer of MTN, Modupe Kadri, the Chief Executive Officer of Mondelez West Africa (Cadbury), Oyeyimka Adeboye and the Chief Financial Officer of APM Terminals West Africa, Courage Obadagbonyi, said these at the 30th Nigerian Economic Summit in Abuja
Kadri questioned the delay in regulatory approval to adjust their prices for over a decade, despite the 16 per cent telecommunications contribution to the Gross Domestic Product (GDP) of the economy.
According to him, the cost of importing telecommunications equipment was dependent on the exchange volatility.
Kadri said, “For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation is not providing us with 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.
“Our business is mainly dependent on foreign exchange, so customers need to understand that for them to receive the services they desire, it costs money.
“When people have to invest in the country and are unable to monetise their investments, it cannot work.
“The only way this economy will thrive is if there is appropriate pricing such that investments in the sector are guaranteed. The government is talking about diversifying; I’m talking about survival. What is the business case for me to invest when I’m bleeding almost to death?
“The telecommunications industry contributes 16 per cent to the GDP, and it is not something that you can mess around with.
“If we are not careful, what happened to the oil industry, which led to a loss of investments, will happen to telecommunications, and the industry will come to a halt. It’s not rocket science.”
However, Adeboye, the Cardbury boss bemoaned the exemption of tariff hike citing the need for inclusivity as the company’s production was heavily import-dependent.
She said “We import glucose, but we have people who can produce it here locally. The problem is that they do not have access to finance.”