The proposed unified exchange rate by President Bola Tinubu has been hailed by the Association of Telecommunications Companies of Nigeria as a development that will benefit the telecom sector.
The ATCON Executive Secretary, Mr. Ajibola Olude, said that if implemented, a single exchange rate would make it easier for telecom companies to get foreign currency as he claims that telecom companies currently purchase dollars from the underground market, which is quite expensive.
Olude asserted that standardizing the exchange rate would make access to foreign currency simple and equal rates for all players in the economy.
Olude encouraged President Tinubu to appoint a Minister of Communications and Digital Economy in addition to implementing the single exchange rate in the ICT industry.
“We need someone who is aware of the problems facing the ICT industry and knows how to fix them. As opposed to an independent person who would not pay attention to them, the sector also requires someone who is willing to collaborate with the key stakeholders,” he added.
Olude stated that the next administration should endeavor to achieve the 70% goal set in the National Broadband Plan 2020–2025 for broadband. He said that the government had two and a half years to reach the goals of the strategy and that as of March, broadband penetration was about 48.2%.
He pointed out that the incoming administration has to strive not just to reach the target but also to outpace and raise it. Olude asserted that he believes the current president is forward-thinking and would consider using private investors to reach the 70% goal.
Olude asked the new administration to push for a single-digit interest rate in response to the President’s advice to the Central Bank on its monetary policy, saying that the present 18.2% interest rate is hurting enterprises.
Additionally, he clarified that the banks often charge 30% interest on loans, which was higher than the actual rate. He claims that this is impeding the telecom sector’s ability to innovate and develop.
Olude also urged the CBN to use commercial banks to establish a dedicated fund for the telecom sector.
“In this manner, it will be simpler for us to get loans at the same interest rate that they offer to other industries. The agricultural sector has previously received this kind gesture, and the telecommunications sector has also joined the ecosystem.”
The newly elected president of Nigeria, Bola Ahmed Tinubu, announced in his inauguration speech on Monday that his administration had decided to replace the prior multiple exchange rate system put in place by the central bank under the previous president Buhari with a single exchange rate.
President Tinubu highlighted the need for a single currency rate and the necessity of diverting money from arbitrage into worthwhile projects. In addition, he demanded that interest rates be lowered, claiming that they are currently bad for Nigerians and businesses alike.
