FOREX: ALTON appeals to CBN for priority allocation to telecoms operators

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has lamented the challenges being faced by its members in purchasing Foreign Exchange (FOREX) from interbank market to fulfil obligations to Equipment Suppliers and Foreign Vendors.

This situation, according to the association, is adversely impacting its members’ network operations and therefore appealed to the Nigerian Communications Commission’s (NCC) to intercede on the operators’ behalf for the Central Bank of Nigeria (CBN) to accord its members priority status in the purchase of FOREX to ease their operations.

In a press release issued over the weekend by the association and signed by its president, Mr Gbenga Adebayo, it particularly appealed to the NCC on the subsisting regime of exempting the telecommunications industry from the Central Bank of Nigeria’s (CBN) intervention window, saying the industry should also be placed on priority list like the manufacturing sector, aviation and agricultural sectors.

“Telecommunications Service Providers are similar to manufacturing firms and deserve to be treated in the same manner.  The core network equipment and other auxiliary equipment procured for providing Voice and Data Services are equivalent to plant and machinery acquired by the manufacturing firms for the production of goods and services in the country.

“In addition, telecommunications sector is termed “infrastructure of infrastructures” and Social Overhead Capital which propels productivity in other sectors of the economy.  The multiplier effects of efficient and reliable telecommunications services on other spheres of the economy, such as banking, aviation and hospitality cannot be overemphasised.

“ALTON is of the opinion that the telecommunications sector deserves to be supported through direct FOREX allocation from the CBN interventions.  This will facilitate the deployment of pervasive broadband network nationwide and ensure that the country retains its prime position, as the largest telecommunications market in Africa ahead of South Africa in terms of subscriber base,” the statement added.

According to the association, the continued exemption of Telecommunications Equipment and Services from items to be accorded priority in the allocation of FOREX by the CBN has adversely impacted the telecommunications industry in many ways including increase in operating cost, unfavourable credit terms, delayed implementation of network enhancement and improvement Initiatives, among many others.

“In the light of the foregoing, ALTON respectfully requests the NCC to fast track the ongoing engagement with the CBN to include Telecommunications Equipment and Invisibles among the list of items/sectors to be allocated from the 60 per cent FOREX availability by the banks regardless of source of inflows.  This is to ensure the continued provision of world class telecommunications services to the consumers,” the statement concluded.