TheCable

Sunil Bharti Mittal, chairman of Bharti Airtel Worldwide, has hailed the decision of President Bola Tinubu to eliminate multiple foreign exchange (FX) rates.

During his inaugural speech on May 29, Tinubu said he would work towards a unified exchange rate.

Two weeks after the speech, the Central Bank of Nigeria (CBN) announced the unification of all segments of the FX market.

The development means that all FX windows are now collapsed into the investors & exporters (I&E) window.

The Airtel boss, who visited the president on Monday, said the turn of events is what investors had clamoured for.

He said the longstanding issue has been a challenge for foreign investors, adding that the decision will now unleash foreign investments in the country.

“One of the key changes that His Excellency, the president, has made in the first few days of his tenure, has been making naira free float unto the market, letting the market decide, as opposed to CBN’s very… four or five exchange rates, which was very difficult to navigate for companies like ourselves and many others,” he said.

“As you’ve all seen, the naira has devalued, but the worldwide markets have given standing ovations to this move and the dollar bonds have strengthened in Nigeria and generally there’s excitement in investing and companies who are going to be coming to put their bases here in Nigeria.”

Mittal said his company has invested almost $4 billion in Nigeria since its inception.

“We’re already investing about $400 million a year, which has been going on for the last many years. Of course that will continue, that is business as usual,” he said.

“On top of that, to roll out the 5G and more fibre into the ground and data centres… we’ll require  $700 million to get to that outcome. So while there is no exact number I can give you, but 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.”