MTN, Airtel, Others Sound Alarm Over Impact of Forex Scarcity on Jobs
- Telecom operators in Nigeria have warned of the impact that forex scarcity is having on their operations
- They warned that the shortage of FX has a negative impact on the creation of jobs in the sector
- They appeal to the FG to establish a dedicated forex window to support their foreign exchange needs
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has asserted that the foreign exchange (FX) shortage will affect employment opportunities within the telecommunications industry.
ALTON conveyed this message during the Nigerian Communications Commission (NCC) interactive session with Dr. Aminu Maida, the newly appointed Executive Vice Chairman and Chief Executive Officer, held in Lagos.
Source: UGC
Job creation not possible without Forex
For many years, Nigeria has battled a forex shortage, which has heightened in recent times.
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Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, November 25, showed the naira closed at N794.89/$1, rebounding after a two-day fall.
Gbenga Adebayo, the Chairman of ALTON, emphasized the significance of access to foreign exchange for the sector, particularly in light of the Federal Government's aim to generate approximately two million digital jobs by 2025.
Adebayo said:
We have a need for FX. Some of these requests are on your table. We must be in the first line for access to FX, otherwise, all the job creation we are talking about may not be possible if people cannot pay their FX obligation and buy their applications because of scarcity.
Given the sector's reliance on foreign inputs, access to foreign exchange (FX) is paramount for telecom services.
According to Punch, telecom operators recently requested the establishment of a dedicated forex window to support their foreign exchange needs.
They appealed to the government to collaborate with the Central Bank of Nigeria in implementing intervention measures to bolster the telecommunications sector.
These interventions may include establishing a dedicated forex window tailored for the industry and creating long-term, low-interest infrastructure funding schemes.
Telcos lament scarcity of Forex on operations
In their financial statements, MTN Nigeria and Airtel expressed concerns about the adverse effects of forex scarcity on their operations.
They emphasized that the prolonged forex shortage in the market is affecting their capacity to make prompt payments in foreign currency to their international suppliers.
The telcos also reiterated their demand for a reconsideration of pricing, emphasizing that the existing pricing structure in the industry no longer aligns favourably with their business needs.
MTN, Airtel, others drag Nigerian banks over N200bn USSD debt
In related news, Legit.ng reported that ALTON urged Nigerian banks to settle their outstanding debts to its members for Unstructured Supplementary Service Data (USSD) transactions
They warned that failure to do so may lead to a potential service shutdown.
The outstanding amount has escalated to an estimated N200 billion from the N120 billion recorded earlier this year.
The disagreement between the two sectors over USSD debt repayment dates back to 2019, with the debt standing at just N17 billion in 2020 before witnessing a substantial and rapid increase.
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Source: Legit.ng
