Airtel Africa has responded to the Central Bank of Nigeria’s move to promote a free-floating foreign exchange market, stating that it will help address the difficulties faced in accessing US dollars in recent years.
Airtel Africa, a provider of telecommunications and mobile money services, holds the belief that the recent foreign currency policy and subsequent adjustment of market exchange rates will lead to an increase in the availability of US dollars.
Regarding the Nigerian foreign exchange market, Airtel Africa views the elimination of segmentation and the reintroduction of the ‘Willing Buyer, Willing Seller’ model as positive measures that will contribute to a more stable foreign exchange market.
The company expresses satisfaction with the appreciation of the US dollar against the naira in the Investors and Exporters (I&E) window, a result of the decision made by the Central Bank.
In their latest financial results, Airtel Africa disclosed a sensitivity analysis regarding currency devaluation, highlighting the potential negative impact of a 1% devaluation of the Nigerian naira on their revenues, EBITDA, finance costs, and derivative instruments.
However, the company does not anticipate a significant impact on the EBITDA margin, as the US dollar component of operating costs in Nigeria is minimal.
Airtel Nigeria, which represents Airtel Africa’s largest market, is expected to experience significant growth due to factors such as an underpenetrated market, population growth, and a strong demand for digital and financial services.
Over the years, the company has consistently delivered positive performance, with revenue and EBITDA growth measured in constant currency.
Airtel Africa remains committed to investing in Nigeria to capitalize on growth opportunities, drive digitalization, contribute to economic advancement, and enhance the lives of people throughout the country.