Airtel to Invest $700 Million in Nigeria as Tinubu Floats Naira

Ilesanmi AdekanbiJune 20, 2023

3 minutes read

The Chairman of Bharti Airtel Worldwide, Sunil Mittal, has commended President Bola Tinubu for harmonising the foreign exchange markets in Nigeria by allowing the naira to float freely. He said this would attract more foreign investments into the country and enhance the confidence of investors.

Mittal made this remark after meeting with the President at the Presidential Villa, Abuja, yesterday. He was accompanied by other senior officials of Airtel, including the CEO of Airtel Africa Limited, Segun Ogunsanya.

Mittal said that the new exchange rate policy had removed one of the major obstacles to foreign investments in Nigeria. He recalled how the previous policy had frustrated Airtel’s efforts to import critical equipment to improve its operations in Nigeria.

The Central Bank of Nigeria (CBN) had on Wednesday floated the naira, giving traders at the Import and Export (I&E) window the freedom to determine the exchange rate. The policy was applauded by the International Monetary Fund (IMF) on Friday.

Mittal also announced that Airtel, which had rolled out its Fifth generation (5G) service in Nigeria, would increase its annual investments in Nigeria from $400 million to $700 million in the next two years. He said this would enable the company to deploy more fibre, data centres and 5G infrastructure in the country.

He said: “We’re already investing about $400 million a year, which has been going on for many years and of course will continue. On top of that, to roll out the 5G and more fibre into the ground and data centres will require more than $700 million to get to that outcome. So, while there is no exact number I can give you, all I can tell you is $400 million is what we generally invest every year. With 5G, the investment is only going to go up for the next two or three years before it comes back to the same $350, $450 million a year and we have invested just under $4 billion since the time we have come into Nigeria.”

Mittal also said he discussed with the President on how to use technology to empower the economy, create jobs and reduce poverty. He said he shared his experience from India, where massive infrastructure investment, digital ecosystem creation and biometric-based services had helped to lift millions of people out of poverty.

He said: “I saw this President’s deep commitment to removing poverty. I come from a country, India, where we also have decades of poverty, which has been rapidly minimised and eradicated in some parts, through the intervention of massive infrastructure investment, massive digital ecosystem creation and using the digital infrastructure to provide services by the government to its citizens. This includes direct benefit transfers in the form of cash in the hands of people, biometric-based banking transactions and biometric-based health services.

“During the COVID time, India, as you know, through the biometric, could ensure that every one of its citizens was inoculated and vaccinated. These things that the technology can offer and more are fully on display in India and available to its friendly countries in Africa, like Nigeria,” he said.

Tinubu, according to a statement by his Special Adviser on Special Duties, Communication and Strategy Dele Alake reassured investors of a better business climate.

The President recalled his connection with the Telco when it started as Econet Wireless in Nigeria. He said that as the then Governor of Lagos State, he facilitated and supported the entry of the company into Nigeria to liberalise the telecommunication industry.

The statement read in part: “I have a connection with Airtel. We brought Econet to Nigeria when I was governor of Lagos State. I was a main promoter then because we needed to liberalise the telecom industry. The economy of Asia headed by India is very phenomenal because of reforms. We are ready to copy India.

”Digital economy is very crucial. We are not ashamed to copy any model that works. I congratulate Airtel for the growth of your business in Nigeria. We are looking forward to the growth and expansion of your 5G network in Nigeria. Airtel should continue to promote Nigeria.

“I assure you that your investment is very safe and will continue to grow. We are working to improve the business environment for all investors,”.

The Special Adviser to the President on Monetary Policy, Mr Wale Edun, in his remarks, said that Tinubu had always recognised the transformational power of technology and telecommunication for economic growth.