Modupe Kadri, Chief Financial Officer of MTN Nigeria, has raised alarm over the stifling business environment created by unfavourable regulatory policies in the telecommunications industry, warning that such crippling limitations will ultimately harm other sectors in the Nigerian economy.
Speaking during one of the CEO roundtable discussions at the 30th National Economic Summit in Abuja, Kadri highlighted the urgent need for reform in the regulatory environment to sustain the sector and also encourage growth.
“The telecoms sector is critical for digital transformation in industries like finance, FMCG, logistics and creative sectors. If the government does not create an environment where the industry can grow and thrive, it will have a ripple effect on these sectors,” he said.
Despite contributing 16% to Nigeria’s Gross Domestic Product (GDP), Kadri reiterated that telecommunication operators face rising operational costs and heavy reliance on foreign exchange without permission to adjust service tariffs.
He stressed that urgent regulatory changes are necessary for the sector’s survival.
“For ten years, telecommunication operators have not been permitted by regulators to increase their tariffs, despite the economic downturn.
“This limitation is making operations increasingly difficult and the sector is fighting for survival. If we want to attain sustainability, these regulatory policies must be reviewed and telecom operators need to be allowed to adjust their prices, given present economic conditions,” he said.
Echoing Kadri’s sentiments, Courage Obadagbonyi, CFO of APM Terminals, emphasized the consequences of excessive regulatory burdens. “If you impose excessive regulations and operators cannot reinvest, the industry is bound to revert to the dark ages of dysfunctionality, ” he said.
Obadagbonyi criticized the lack of coordination among various government ministries and agencies that serve as regulatory bodies, noting that overlapping regulations and multiple taxation systems complicate operations and deter potential investors.
“Multinationals make objective decisions about deploying investment capital based on market volatility and their ability to adjust prices.
“Unfortunately, Nigerian projects are already at a disadvantage compared to those in Europe,” he added.
Both executives called for comprehensive policy reforms to create a more favorable business climate that encourages investment and supports economic development.
Other industry leaders, including Oyeyimika Adeboye, Managing Director of Cadbury West Africa, and Nkechi Obi, Group Managing Director of Techno Oil, joined them on the panel.
The discussions at the National Economic Summit underscored a critical moment for Nigeria’s economy.
Stakeholders urged government action to address regulatory challenges and foster an environment conducive to growth and investment.
