Sunday Imafidon
Mr. Modupe Kadri, the Chief Financial Officer of MTN Nigeria, recently addressed the ongoing forex crisis, stating that the company’s capital spending is negatively affected due to the devaluation of the Naira, highlighting the challenge faced by telecom operators as their expenditures are predominantly in dollars, while revenue is earned in Naira.
In response to the situation, Kadri emphasized the necessity of adapting to the circumstances, noting, “Now, it is a matter of cutting your coat according to your clothes. We are in an unusual time.” He acknowledged the impact of the devaluation on the company’s ability to obtain fewer dollars for spending.
Regarding fair pricing of telecom services, Kadri stressed the importance of engaging with industry regulators to ensure appropriate pricing that justifies continued investments. He cautioned that without fair pricing, operators might face challenges in further infrastructure investments.
Despite these challenges, Kadri highlighted MTN’s commitment to investing in critical infrastructure. He shared the company’s achievements, including acquiring a 5G license and significantly increasing the population coverage of 5G. However, he underlined the threat to further investments if fair pricing is not allowed.
In emphasizing the broader issue beyond MTN, Kadri called on the government to implement policies that support the telecom ecosystem. He drew attention to the capital-intensive nature of telecom investments, stating, “Now, if you don’t have a business case for investments, what’s going to happen is that people would withhold or will not be able to invest, and why they don’t invest what happens to infrastructure? It degrades and it goes down.”
In conclusion, Kadri urged learning from the challenges faced by other sectors, such as the oil industry, where a lack of investment led to degradation. The message underscores the critical role of fair pricing and supportive policies in sustaining and advancing the telecom infrastructure in Nigeria.
