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

FNB, PayPal bring global eCommerce to Botswana

Ogone Madisa-Kgwarae First National Bank (FNB) has announced it will be extending the partnership between FNB and PayPal to offer the PayPal Withdraw Service, previously available only in South Africa, in Botswana. Read More

Survey: businesses have less than two years to make digital inroads

Progress has announced the results of its recent global survey: "Are Businesses Really Digitally Transforming or Living in Digital Denial?"  Read More

Gartner: profit opportunities exist for PC vendors

The worldwide PC market registered one of its lowest quarterly growth rates in the first quarter 2016, but Gartner, Inc. said several profit opportunities exist for PC vendors. Read More

MTN Business makes headway to be an ICT Partner of Choice

MTN Business, the enterprise business unit of MTN SA, plans to focus on three key areas in a bid to become the ICT partner of choice, namely, getting the basics right, accelerating growth and diversifying its revenue streams. Read More

MTN Ghana celebrates 20 years of operations in Ghana

MTN Ghana has unveiled its 20th Anniversary logo at a grand ceremony held at the iconic MTN House in Accra to officially mark the 20 years of operations in the country.  Read More

Copy Cat bets on innovation to grow market share

Kenyan technology company Copy Cat Group is implementing a new transformational strategy to increase its market share in the ICT market.  Read More

Infrastructure investments highlight bright spots for SSA economic diversification

The commodity super cycle may have ended, but there are certainly bright spots for investors across sub-Saharan Africa, IHS has told the World Economic Forum on Africa. Read More

Africa’s CEOs look to innovation and technology to stimulate growth

CEOs in Africa are ramping up their efforts to innovate and find new ways to do business on the continent, according to PwC’s Africa Business Agenda released at the 26th World Economic Forum on Africa in Kigali. Read More

4th Africa Business Forum to be staged in Ethiopia

Registration is open for the 4th Africa Business Forum to be held on Wednesday, June 1st, 2016 at the Sheraton Hotel, Addis Ababa, Ethiopia, East Africa. Read More

Airtel divests telecoms tower assets in DRC to Helios Towers Africa

Bharti Airtel International and Helios Towers Africa have announced an agreement for the divestment of approximately 950 telecoms towers in the DRC from Airtel to Helois Towers Africa.  Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor Networks
Advertisement

FEATURED STORY

Government should encourage youths in ICT earlyGovernment should encourage youths in ICT early

Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.

IN DEPTH

IBM Opens First Cloud Data Centre in South AfricaIBM Opens First Cloud Data Centre in South Africa

IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.  

COMPANY NEWS

Enhancing your security posture to fight new ransomware threats

Petya ransomware is proving to be one of the top cybersecurity stories of 2016. 

Arbor stops malware in its tracks

There is always a substantial amount of banking trojan activity taking place, however, recent developments have intensified the threat landscape.