Business Leaders Urge Government to Create a Balanced Environment for Investment in Nigeria
Business operators in Nigeria, including MTN, have stressed the need for a fair and competitive environment to maintain their investments in the country. They lament that the government has not allowed them to increase their prices in the last ten years, and a policy review is necessary for their survival.
During a panel discussion at the 30th Nigerian Economic Summit in Abuja, Modupe Kadri, Chief Financial Officer of MTN, pointed out that the current economic conditions, including high inflation rates and foreign exchange fluctuations, are affecting the telecommunications sector’s ability to operate efficiently.
Kadri emphasized that the sector’s inability to adjust its pricing has led to a challenge in maintaining its services. He called for a review of the current policy, citing the performance of the petroleum and electricity sectors, which have adjusted their prices to reflect economic realities.
The CFO highlighted that telecommunication companies have not been allowed to modify their pricing for over ten years, despite importing equipment at foreign currency rates. He emphasized the need for a greater understanding of the industry’s financial situation, stating, “Our business is mainly dependent on foreign exchange, so customers need to understand that to receive the services they desire, it costs money.”
Kadri argued that the government’s diversification plans are unlikely to succeed if businesses are not allowed to operate profitably. He warned that if the sector shrinks, it will have a ripple effect on other industries, including financial services and logistics.
Other business leaders shared similar concerns about the operating environment. Oyeyimka Adeboye, CEO of Mondelez West Africa (Cadbury), mentioned that her company’s production relies heavily on imports and that expenses have increased threefold in the past two years. She stressed the need to reduce imports and provide access to financing for domestic production.
Courage Obadagbonyi, CFO of APM Terminals West Africa, emphasized the importance of improved collaboration among government regulators. He noted that the absence of coordination creates confusion for businesses, making it challenging for investments to thrive in an unorganized environment.
Nkechi Obi, Group Managing Director of Techno Oil Limited, emphasized the need for sound policies to ensure successful business operations. She expressed hope that the inauguration of the Dangote refinery would contribute to a degree of stabilization in the prices of petroleum products.
