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‘Permit Us Raise Our Prices, Increase Tariff ’ – MTN Begs FG

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1 month ago

Oct 16, 2024.

MTN Nigeria and other multinational business leaders are pleading with the Federal Government to permit them to raise their tariff plan prices to sustain their operations and investments.

Over the past decade, they have faced significant challenges due to the government’s refusal to allow price increases, which they argue is essential for maintaining a viable business environment.

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EKO HOT BLOG reports that during a recent panel discussion at the 30th Nigerian Economic Summit in Abuja, Modupe Kadri, Chief Financial Officer of MTN, emphasized that high inflation rates and fluctuations in foreign exchange have severely hindered the telecommunications sector’s ability to operate effectively.

Kadri noted that while tariffs in the petroleum and electricity sectors have been adjusted to reflect economic realities, similar changes have not been allowed for telecommunications.

“For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation does not provide us with a level playing field,” he said. “If we are to stay in business, this policy must be reviewed.”

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He underscored the industry’s dependence on foreign currency, urging customers to understand that service delivery incurs significant costs.

“The only way this economy will thrive is through appropriate pricing that guarantees investments in the sector,” Kadri warned, stressing that a downturn in telecommunications could have ripple effects on financial services, logistics, and the broader economy.

Oyeyimka Adeboye, CEO of Mondelez West Africa (Cadbury), highlighted that production costs have tripled over the past two years due to reliance on imports. She called for improved access to financing for local production.

Meanwhile, Nkechi Obi, Group Managing Director of Techno Oil Limited, expressed hope that the Dangote refinery would stabilize petroleum prices, emphasizing the need for sound policies to support business operations.