The Association of Telecommunications Companies of Nigeria (ATCON), the umbrella body of all licensed telecommunications operators in the country, has described the proposed unified foreign exchange (FX) rate for the Naira by President Bola Tinubu as holding great potential for the telecom industry.
The Executive Secretary of ATCON, Mr. Ajibola Olude, who stated this during a chat with journalists on the proposed monetary measure announced by the newly elected President during his inaugural address on Monday, pointed out that if implemented, a unified FX rate of the Naira would ease operators’ burden of sourcing for FX from the black market.
According to telecom expert, due to the high cost of sourcing FX from the unofficial market, telecom companies end up using funds that should be committed to infrastructure and other assets to acquire just a few with the attendant negative implications for their desire to further deepen telecom services.
In addition to the implementation of the unified FX rate, Olude also appealed new President to appoint a professionally competent person as Minister of Communications and Digital Economy in view of the increasing contributions of the ICT sector to the nation’s Gross Domestic Product (GDP) and other areas.
He said: “We need someone who knows the challenges in the ICT sector and understands how to find solutions to them. The industry also needs someone ready to work with the critical stakeholders in the industry, not an independent person who would not listen to them.”
The ATCON’s leader, who disclosed that at the end of Q1 2023 the nation’s broadband penetration was around 48.2%, also urged the new administration to work towards the realization of the 70% broadband penetration target set in the National Broadband Plan 2020 -2025.
Similarly, he charged the new administration not only to work towards meeting the 70% target but also try to surpass it by collaborating with private investors.
Reacting to President Tinubu’s charge to the Central Bank of Nigeria (CBN) on some key monetary policy measures, Olude urged the President to support the apex bank on the single-digit interest rate on loans, stressing that the current 18.2% interest rate is hurting businesses and the citizens, who are the consumers of produced goods and services.
Specifically, in order to use the measures to support the telecom operators, he advised the CBN to create a special fund for the telecom industry through commercial banks to enable them enjoy improved cost efficiency in their sustained drive to offer services at affordable tariffs to telecom customers nationwide.
The association’s Executive Secretary explained that “this way, it will be easier for us to access loans at the same rate they give to other sectors. This gesture has already been extended to the agricultural sector, and the telecommunications industry has also become part of the ecosystem. CBN should open a window for our members to access loans and forex.”
