FOREX INVESTMENT IN THE TELECOMS SECTOR DECLINES

Despite the telecommunications industry's cries for additional foreign currency, the Central Bank of Nigeria's release of foreign exchange for communications services decreased.

It was noted that there was a decrease in official forex spent on communication services in the nation of $35.29m or 26.95% between January and August 2018 and the same period in 2022.

The information came from the Central Bank of Nigeria's sectoral usage for transactions that qualified as foreign exchange transactions.

As of the time this story was submitted, the CBN had only provided data through August 2022.

It was observed that $130.95m in currency was disbursed between January and August of 2018.

According to a breakdown, $21.62 million was released in January 2018, $10.70 million in February, $12.91 million in March, $12.73 million in April, $16.47 million in May, $15.07 million in June, $15.92 million in July, and $25.53 million in August.

It had dropped to $95.66m over the same period last year, though. In January 2022, $18.05 million was released, followed by $8.65 million in February, $12.39 million in March, $19.5 million in April, $7.50 million in May, $10.35 million in June, $11.17 million in July, and $8 million in August.

The former communications minister, Mr. Adebayo Shittu, claimed in August 2018 that the ministry was working with the CBN to put the information, technology, and communication sector at the top of the list of priority industries for foreign exchange.

However, it was noted that the industry had been placed to the list of priorities by January of last year.

It was mentioned that the CBN's currency priority allowed MTN, Airtel, Glo, and other carriers to access enough dollars to import important equipment for the deployment of fifth generation and improve other forex-related activities.

Gbenga Adebayo, chairman of the Association of Licensed Telecoms Operators of Nigeria, stated in an interview with The PUNCH last year that the CBN's decision meant telcos could access enough foreign currency to meet their obligations to other countries as well as invest in infrastructure.

We appreciate the CBN's priority consideration and its ranking, he said. We also appreciate the minister's assistance in this matter.

Players will now be able to fulfill their international duties. As you are aware, international traffic is exchanged with other nations in order for operators to fulfill their responsibilities (to equipment suppliers and bandwidth providers); all of those operations provide support for the industry.

The other benefit is that it makes equipment purchases possible. It makes it simpler to buy hardware and software. It will support the growth of the industry. Additionally, as we are discussing the rollout of 5G, players will have better access. We are appreciative to the government for making this happen because it is in everyone's best interest.

A source in ALTON claims that as a result of interactions with the Federal Government through the Nigerian Communications Commission, the minister in charge of the industry, and the office of the National Security Adviser, telecommunications corporations received priority access.

Even still, it seems that telecommunications companies still have trouble getting the foreign currency they require.