Multinationals Urge Nigerian Government to Create Level Playing Field for Businesses
In a move that is likely to send ripples across Nigeria’s economic landscape, top business executives from MTN Nigeria and other multinational companies have called on the Federal Government to create a level playing field for businesses to operate effectively. The appeal was made during a panel session at the 30th Nigerian Economic Summit in Abuja, where participants highlighted the challenges of doing business in the country’s volatile environment.
Although the country’s high inflation rate and foreign exchange fluctuations have made it difficult for the telecommunications industry to operate, Modupe Kadri, Chief Financial Officer of MTN, emphasized that the sector has not received regulatory approval to adjust its prices for over a decade. "For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation is not providing us with a level playing field to operate. If we are to stay in business, this policy must be reviewed, similar to how electricity and fuel prices are adjusted to reflect current economic realities," Kadri said.
Kadri further highlighted the importance of pricing in the telecommunications industry, citing the significant foreign exchange dependence of the sector. "Our business is mainly dependent on foreign exchange, so customers need to understand that for them to receive the services they desire, it costs money. When people have to invest in the country and are unable to monetise their investments, it cannot work."
The call to action by Kadri and other business leaders is not without precedent. In recent times, the country has witnessed a significant increase in tariff hikes in the petroleum and electricity sectors, with little sign of let-up on the horizon. However, the telecommunications industry remains one of the most affected, with telecom companies yet to receive regulatory approval to adjust their prices for over a decade.
The plea for a level playing field has been echoed by other business leaders, including Oyeyimka Adeboye, Chief Executive Officer of Mondelez West Africa (Cadbury), and Courage Obadagbonyi, Chief Financial Officer of APM Terminals West Africa. They both stressed the need for better coordination between government regulators and the private sector to create an environment conducive to investment and growth.
As the Nigerian economy continues to navigate its challenges, the business community’s call for a level playing field is an urgent one. With the country’s telecommunications industry contributing 16% to the GDP, it is essential that policymakers prioritize the creation of an environment that is conducive to investment and growth. As Kadri concluded, "What is the business case for me to invest when I’m bleeding almost to death?" The answer lies in creating a level playing field, where businesses can thrive and grow without the added pressure of regulatory barriers.
