As telecoms sector’s investments wane

From losses induced by foreign exchange exposures to increased operating costs, a chunk of vandalism, closure of sites and a significant drop in investments, this is not the best time for Nigeria’s telecoms sector, ADEYEMI ADEPETUN writes.

Similarly, MTN Nigeria’s N108.43 billion profit after taxes for the same time last year was not the same as its N392.69 billion loss after taxes a year later. Foreign exchange headwinds were the reason given by both telcos for these losses.WHILE the crisis remains frightening, statistics from the Nigerian Communications Commission showed that as of Q4, 2023, telecoms sector’s contribution to the country’s GDP was 14 per cent.

On a quarter-on-quarter basis, foreign capital inflow into the telecoms sector decreased by 64.33 per cent to $22.84 million in Q4 2023 compared to the $64.05 million received in Q3 2023. Industry players are contending with significant challenges, particularly regarding operational costs. These challenges are exacerbated by factors such as foreign exchange devaluation and scarcity.TO further confirm the crisis of slow investments, the Chief Financial Officer of MTN Nigeria, Modupe Kadri, recently said that the company now has less money to invest in infrastructure as the ongoing forex crisis in the country has eroded the value of its capital spending, which is fixed in naira.

He argued that telecoms companies are struggling financially and may be forced to shut down if the situation doesn’t improve. He said the current prices don’t cover operational costs and the operators have requested a dialogue with the government to find a solution that balances affordability for consumers with their financial viability.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” he affirmed.

Source: Healthcare Press (healthcarepress.net)

Aminu Maida MTN Nigeria NCC NIN-SIM Linkage Telecoms

Nigeria Latest News, Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Telecoms sector should not be used as ‘palliative’, ALTON warnsTelecommunications operators have harped on the challenges confronting the $76 billion sector, saying they cannot be swept under.
Source: GuardianNigeria - 🏆 1. / 94 Read more »

NCC takes inputs from industry stakeholders on regulationsAs part of efforts targeted at improving the telecoms sector, the Nigerian Communications Commission (NCC) will be taking inputs from stakeholders on three subsidiary regulations.
Source: GuardianNigeria - 🏆 1. / 94 Read more »

Telecoms sector should not be used as ‘palliative’, ALTON warnsTelecommunications operators have harped on the challenges confronting the $76 billion sector, saying they cannot be swept under.
Source: GuardianNigeria - 🏆 1. / 94 Read more »

ALTON to FG: Don’t use telecoms sector as palliative for economic woesChairman of the Association of Licensed Telecom Operators of Nigeria, ALTON, Gbenga Adebayo, has told the Federal Government not to use the telecommunications sector as a palliative to solve economic woes.
Source: vanguardngrnews - 🏆 5. / 75 Read more »

Why Telecoms Industry May Become Like Energy Sector — ALTON Boss, AdebayoThe Latest News from Nigeria and Around the World
Source: channelstv - 🏆 7. / 63 Read more »

Experts lament economic challenges facing telecoms sectorChairman of the Technology Committee of the Nigerian Bar Association Section on Business Law, Ikemesit Effiong,
Source: GuardianNigeria - 🏆 1. / 94 Read more »