Nigeria’s forex policy hurts ICT business: Spectranet

BUSINESS

|
Image: Spectranet’s David Venn, Davendra Singh and Mike Ogor in Lagos. By BiztechAfrica
Spectranet’s David Venn, Davendra Singh and Mike Ogor in Lagos

By Kokumo Goodie, Lagos, Nigeria

Inability to expand capacity by way of buying new equipment and inability to pay for equipment already ordered are some of the challenges confronting operators in the information communication technology (ICT) sector in Nigeria, no thanks to the policy of the Central Bank of Nigeria (CBN) that has taken the dollar out of circulation, says Spectranet.

The policy has turned operators into debtors as they cannot get dollars to pay for equipment imported into the country, says the Chief Executive Officer of Spectranet, David Venn. Spectranet is a major internet service provider (ISP), reputed for offering high speed internet services, using the latest technology which is 4G or long term evolution (LTE).

Venn, who spoke with ICT reporters during an interactive session in Lagos, lamented that the policy has messed up planning, especially for businessmen that depend on imported equipment such as Base Transceiver Stations (BTS) to offer high quality services to customers in the country.

He further lamented that with the poor credit rating of the country in the international community as a result of the dollar crunch, accessing credit has become Herculean task.

Venn said even firms that had placed orders for equipment cannot pay again because the dollars to pay with are not available anywhere in the country.

According to him, the major challenge with the dollar drought is that the technology firm has the cash in naira but cannot get dollar to buy to pay for goods and services. According to him, international bandwidth requisite for the delivery of super fast broadband internet services and equipment are sourced from outside the country in dollars, lamenting that the forex squeeze has disrupted the capacity expansion plans of the firm.

He said in last year, naira exchanged for a dollar at about N160, adding that now, it officially exchanges for over N200. He said it is even difficult to get dollars at the N200 rate, stressing that it is sourced at N300, arguing that even at that, the forex is not there at all.

During an interactive session with reporters in Lagos too, the CEO of MTN Nigeria, Ferdi Moolman lamented that it has also become increasingly difficult to import equipment into the country because of the forex policy.

He said good service quality is a function of several factors one of which is the availability of BTS which serve as bridge between telecoms service end users and the network.

The inability to import equipment into the country therefore means that capacities will remain the way they are while the subscribers will be at the receiving end.

 

 



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE BUSINESS NEWS

Collymore: PPP transparency to fuel Africa’s renaissance

Africa’s renaissance will be fueled by transparent partnerships between governments and private businesses working to improve the livelihoods of the continent’s population, Safaricom CEO Bob Collymore has predicted. Read More

Lack of technology bane of Nigeria’s SMEs, says Matt O’Bell chief

Bola Olayinka, Ademide Malumi and Dare Ojo-Bello Aside financial constraints, the non-application of technology has been identified as one of the constraints of small and medium enterprises (SMEs) in Nigeria. Read More

Telecom M&A and digital convergence to lead deal activity in Africa

TMT Finance is teaming up with IHS Towers, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, to bring an international audience to Africa’s technology hub, Lagos, for the first event of its kind in Nigeria. Read More

Reach for Change Africa calls for strengthened social entrepreneurship

Reach for Change Africa is calling on social entrepreneurs, NGOs and government to play their role in strengthening the social entrepreneurship sector in Africa on International Day of Youth 2016. Read More

Stanford Seed Entrepreneurs join top Silicon Valley business leaders at Global Summit

Afolabi Abiodun, CEO of Nigeria-based telecommunications company SB Telecoms, couldn’t quite believe his eyes as he stood on Stanford University’s bustling Silicon Valley campus recently.  Read More

Etisalat, YuuZoo launch e-commerce portal for SMEs

Nigeria’s most SME-friendly telecommunications operator, Etisalat, in partnership with Singapore’s YuuZoo Corp, has unveiled a bespoke e-commerce platform, SME Arena, to facilitate the growth of Small and Medium Enterprises (SMEs) in Nigeria. Read More

Mstore plans $50m African expansion

Midcom Group has announced expansion plans aimed at making its Mstore the largest mobile and electronics retailer in Africa. Read More

*astTECS Expands Operations in Africa

*astTECS, a leading provider of Enterprise Telecom Technology Products and Asterisk based Open Source Communication Solution, is expanding its Africa footprint with a presence in Ghana and Botswana. Read More

The Tech Revolution: Sage Sets out the Vision for African Businesses

Sage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, with a focus on new and existing initiatives that power business growth.   Read More

Francistown Barclays gets cardless

Cardless cash deposits have been launched in Francistown. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

Financial services sees AI as both opportunity and threatFinancial services sees AI as both opportunity and threat

Banking is already a key area where technology is having an impact throughout Africa, and a new survey assesses the impact artificial intelligence will have on this sector.

Advertisement

IN DEPTH

Access and Use of ICT stats releasedAccess and Use of ICT stats released

Statistics Botswana has released the first results of the 2014 Information and Communication Technology Household Survey.