In an exclusive interview with Nairametrics, Mr. Modupe Kadri, the Chief Financial Officer of MTN Nigeria, expressed concerns over the company’s diminished capacity for infrastructure investment due to the prevailing forex crisis in the country. Kadri highlighted that the erosion of the Naira’s value has significantly impacted the company’s fixed capital spending, which is denominated in Naira.
He underscored the broader implications of the Naira devaluation on telecom operators, noting that most of their expenditures are in dollars while revenue is earned in Naira. This misalignment, according to Kadri, poses a formidable challenge to sustaining investment levels crucial for network resilience and service quality.
Addressing the imperative of fair pricing for telecom services, Kadri emphasized ongoing engagements with industry regulators to ensure that pricing mechanisms align with the need for sustained investment in infrastructure. He warned that failure to achieve fair pricing could impede further investment by operators, jeopardizing the expansion and maintenance of critical infrastructure.
Kadri cited MTN Nigeria’s recent strides in technological advancement, including the acquisition of a 5G license and substantial investment in network coverage expansion. However, he cautioned that the viability of such investments hinges on a conducive regulatory environment and fair pricing structures.
Highlighting the broader significance of fair pricing, Kadri stressed that the issue transcends MTN Nigeria, affecting the entire telecom ecosystem. He urged governmental intervention to safeguard the industry’s viability through policy measures conducive to sustained investment.
As a critical national infrastructure provider, Kadri underscored the capital-intensive nature of telecom investments, emphasizing the imperative of continuous investment to maintain and enhance infrastructure quality. He drew parallels with the oil sector, where prolonged underinvestment resulted in infrastructure degradation, cautioning against a similar trajectory in the telecom industry.
In light of these challenges, Kadri urged stakeholders to draw lessons from past experiences and prioritize policies conducive to sustained investment, thereby ensuring the resilience and growth of Nigeria’s telecommunications infrastructure.
