The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has expressed concern that the scarcity of foreign exchange (FX) will impact job creation in the telecommunications sector. During the Nigerian Communications Commission industry interactive session with the new Executive Vice Chairman and CEO, Dr. Aminu Maida, ALTON Chairman Gbenga Adebayo emphasized the sector’s need for access to FX, stating that it is crucial for job creation efforts.
Adebayo highlighted the importance of being in the first line for access to FX, as the ability to pay FX obligations and purchase applications could be hindered by scarcity. Access to FX is critical for telecom services due to the sector’s dependence on foreign inputs.
Telecom operators had previously requested a special forex window to address their FX needs. During discussions with the House Committee on Communications, they urged collaboration with stakeholders, including the Central Bank of Nigeria (CBN), for intervention measures such as a special forex window and long-term, low-interest infrastructure funding schemes.
Major telecom companies, including MTN Nigeria and Airtel, have reported the impact of forex scarcity on their businesses in financial statements. MTN Nigeria used trade lines to fund confirmed irrevocable letters of credit for network capex investments, while Airtel faced limited foreign currency supply within the local monetary system, affecting timely payments to international suppliers.
In addition to FX concerns, telecom operators reiterated the need for a price review, stating that the current pricing regime is unsustainable for the industry. Adebayo emphasized the importance of a frank conversation about the pricing regime’s sustainability, signaling the urgency of addressing the issue.